tv Bloomberg Markets Americas Bloomberg November 15, 2016 12:00pm-3:31pm EST
♪ from the world that goes in new york, coverage for from los angeles to london and berlin. president-elect trump and vice president-elect mike pence me to review names for the cabinet and senior white house positions and we go live to the los angeles out a show or an interview with show for an- auto interview with the president of ford. the latest on what markets are doing now. most are doing the opposite of the past several days which is the overview up today. as investors take a step back and try to judge whether the run we have seen in some elements of the stock market and the plunge in others is justified given the outlook of markets and the economy under a donald trump administration.
for examplethe dow which was at a record yesterday is pulling back a little bit today and technology stocks are performing better. -- it istion is evidence if you look at the imap in the bloomberg, various groups on the move. utilities and telecom stocks, the interest rate sensitive groups that have done poorly over the past several days are performing better today and financials and industrials which have led gains are now at the bottom of the pack in terms of performance. that is where it is more clearly being seen today. we have been watching the commodities as we have seen a rocky iraqi oil trade -- oil trade. as opec isebounding said to make it less push on his production cut plan. natural gas is also bouncing
today, up 1.5% which is making for some big gains within the energy complex in terms of stocks. chesapeake energy rising after carl icahn revealed yesterday that it had eliminated his stake but shares up 11% and murphy oil and marathon oil and southwestern energy also rising on the combination of oil and gas going higher. ,n terms of other commodities we are seeing something of a reversal of the past few days, gold has been under performing, today it is bouncing back although not by much come up 2/10 of 1% and silver of nine to 1% and copper back down again lower by 1%. we got headlines in the last hour from ray daly out a bridgewater who said that we could be seeing the finish of the long-term rally that we have seen in bond prices. this is a u.s. treasury index, a
30 year chart of it of the prices, not the yields, we have seen a huge bull run for treasuries and he is not the only one to say it is now over, the folks at pimco have been making similar comments as we have seen yields climbed in recent days. he talked about a trump residency and what it could mean -- it could mean increased in stimulus and a focus on reviving manufacturing in the united states. to look atresting that long-term chart of what we have seen in the treasury market. vonnie: thank you for that, julie hyman at the markets desk. after the first word news from the newsroom. >> president obama on his final four and trip us commander in chief try to answer the surprise election of donald trump. at a news conference in athens today alongside the greek prime that hismr. obama said priority now is to ensure a smooth transfer of power and not
try to explain to mr. trump's words and deeds. president obama: i do not feel responsible for what the president-elect does or says but i feel a responsibility of president to make sure i facilitate a good transition and i present to him as well as the american people my best thinking , my best ideas about how you move the country forward. >> the president likened mr. trump's rise to the u.k. decision to leave the european union, saying years of globalization and suspicion of government institutions and delete drove both -- and elites drove both decisions. mike rogers has left the president-elect transition committee, it came at the request of team officials. he had been set to guide the new administration on national security issues. one week after losing the presidential election, hillary clinton has been declared the
winner in new hampshire which brings early for college votes to 232 while donald trump has 290 . the only state undeclared is michigan where the president-elect has a thin lead. kerry says yemen shiite rebels have agreed to a cease-fire but yemeni president rejected that initiative. secretary kerry spoke after meetings, if the cease-fire agreement moves forward, it will go into effect on thursday. global news 24 hours a day powered by more than 2600 journalists and analysts in over 120 countries. this is bloomberg. david: i want to pick up on a story mark midgett about changes transitionrump's team, who we make it as a new treasury secretary, carl icahn tweeted that steven mnuchin and wilbur ross are being traded -- consider for treasury.
he also said both are good friends of mine and two of the most smartest people i know, mike rogers the former congressman now talk radio host leaving the transition team. i want to bring in our reporter at the bloomberg politics based in washington. what is the latest on this transition process? mike pence was meeting with donald trump today, what is the latest? >> donald trump seems to be experiencing stumbles in his transition planning. they made a shift from chris christie to mike pence and the bishop of the transition effort and that seems to have slowed things down. sign ance has yet to memorandum of understanding between the trunk campaign and the obama administration that would allow them to share documents and briefings and other materials that the trump need to run the government. there appears to be some infighting t amongrump -- among
surrogates of who will get the cabinet jobs and the mike rogers departure says there is some sort of a power struggle underway within the administration. vonnie: he will still have to announce cabinet picks no matter what is going on underneath the surface, what is the procedure, do we just get a press conference, unexpected and unannounced? >> usually the cabinet picks leak early to press organizations and we reported yesterday that steven mnuchin has been recommended by trump's advisor as treasury of the r ross under consideration for commerce and i would expect a statement from the campaign on this latest cabinet appointments. betweenhis offensive jerald fishman, donald trump's son-in-law and chris christie at his loyalists, give us the back story. jared kushner's father and chris
christie had a run-in. prosecutedristie jared kushner's father. top chris christie eight were indicted about the george washington bridge scandal , they have further, part and now it looks like that's further, part and it looks like the donald trump team is looking to remove chris christie. vonnie: how vulnerable is -- disposable is writes previous best re -- the new chief of staff? >> he is like donald trump's washington establishment guy, to keep them connected to focus on the hill and two republicans on k street and the rest of the
republican establishment in this town. i do not think he will go anywhere. will beally i think he a stabilizing force in the white house, particularly if you've been in survival -- steve bannon survive the scrutiny and keeps his senior role in the trap administration. -- trump administration. david: people still upset donald trump selected steve bannon. could the transition team responded that and then to the pressure -- bend to the pressure? >> i would be shocked, it would take jeff sessions, his closest confident, saying that steve bannon is a problem before donald trump would throw him overboard. i do not take a republican who ran against the washington establishment and who has been battling democrats. sleep for more than a year --
battling democrats for more than a year would push this guy off limits because a few democrats don't like him. vonnie: with the exception of yourself and a few others in washington, it is all one big lobbyist, is the trepidation in washington, d.c. that the swamps will be drained? >> i do not think so, on k street, the assumption is that the trump presidency will be a moneymaking opportunity. thatngress, i believe establishment republicans do not afouluch fear of running of donald trump supporters, it will be business as usual in congress and according to one report by the heritage foundation, they are considering bringing back your marks for appropriation bills which undergone for several years -- your marks for appropriation bills which have been drawn as a sign of corruption.
a goode that there is chance we are one of those major reversals that last a decade, he says the time will be marked by less free trade, increased u.s. growth, and more inflation. delta is boosting pay 6% for its flight attendants and ground workers, in a letter their ceo says bk and benefits will keep the delta as the industry leader in total compensation. delta raise the automatic 401(k) contribution to 3% effective january 1. a massive savings push, united continental holdings deliver of 61 boeing's smallest passenger jet, delaying accepting the 737s to save $1.6 billion in capital apenses, the changes part of $4.8 billion initiative entity to improve the profitability for 2020. that is your business flash update. vonnie: currently a possibly equity rally, the rally that had been ongoing since donald trump's election and investors
has looked at the agenda and driven up chairs for financials, industrials, and health care stocks. our next guest advises a wait and see approach against the -- for the game plan. you say wait and see, could you say let's try and cash in on what is going on now and not worry about the future? >> you could that there has been an tips -- and is up to date -- anticipation and extrapolation about what will happen. we think it is too soon to make a call on the next decade much less the next year. we think it is better to stay with quality, we prefer large caps. >> as the definition of quality chance, large debts that do not have markets outside the u.s. or will not have as many or as attractive, won't they be less attractive to domestic investors? >> yes, if you get trade
restriction policy and we doubt at the hyperbole of the election campaign translates easily or quickly or even at all into direct trade restrictions in practice. we will have to see how that develops that we think there will be time to readjust portfolios later. david: you have been here before, what makes this transition more significant? more speculation of what the next administration will do? trump is announce average washington come he came into the election with much less elaborated plan that his opponent. going forward, it will be difficult -- important to see what were his priorities -- will his priorities be and how will congress play with those priorities? we should not jump to the conclusion that a republican congress will be on board with his priorities. david: -- vonnie: waiting and seeing is maybe -- in this case it is an active approach, if you
take the position you will not change even adobe demonstration policies -- even though the administration policies -- that is a stance. >> waiting for signs we should move in particular directions, we want to see who will be on the cabinet. who will be forming policy and what will be policies look like, what will be priorities look like and what will congress do with them? we should see those in the span of the next month or two or three and at that point we think the election reports will be published to indicate how you should be trying to position if those policies come to fruition. david: how similar is the position we are seeing now to 2008 when we were talking about fiscal stimulus? >> not unusual for markets to say democrats in the house and senate, democrat in the white house, therefore we should move in the same direction. it does not work out that way
necessarily, the shovel ready projects, some are still not ready. david: you mentioned a trade, how they can extract is that when you look at the x factor's? factore is the biggest x because it has the potential to have a largest global impact and the most unexpected u.s. impact. very few are talking about the inflation risk of trade restrictions. we think that is a real one worth watching. not time to pull the trigger. vonnie: say we get fiscal spending or tax cuts, look at the industrial chart in the bloomberg, the last seven days, you have seen a massive increase , is the move done for industrials? >> perhaps not but investors are most at risk when markets lose diversity. samethey are moving in the direction, one opinion that dominates that is when markets are most liable to overshoot the upside and the treasuries to the downside. vonnie: we will have to get you
a different. gary: if dodd-frank is on the table, some aspects of it have been effective, most people would concede even chairman comments that higher capital and major financial institutions is a good idea and has made those institutions sounder and safer. you do notr hand, want to treat all financial institutions that happened to be greater -- have balance sheet more than $50 billion identically because they do not all represent the same systemic risk to the system. there is room to improve dodd-frank, one might wonder whether the consumer financial protection bureau has been a net plus or not, the jury is still out on some aspects of dodd-frank. lots of room to improve it and if you repeal it, the question is -- what do you replace it with if anything? >> the word is dilute now, what
areas would you dilute because it is a careful balancing act, you want more capital and you want the systemic risk issue but present time you are eroding risk-taking capital which as far as you are concerned, how negative has that been? some have seen so clearly a drying up of liquidity in financial markets, that is costly. i think we have some institutions pullback more than they needed to come even given. frank 2 -- dodd-frank to steer clear of problems that could arise. it is always difficult to strike balance and we have seen this before. you get a financial crisis, the pendulum swings way out towards regulation and supervision. balance and we have seen thisas we are seeing a reaction to that and the pendulum starts back which is well and good, appropriate,
hopefully it will not go way back. because we do not want to engineer -- or prevent another financial crisis if we can avoid it. getting the balance right will be tricky, we should not kid ourselves, we will not find the perfectequilibrium, the point of stability but there is room for the pendulum to come back. in charge, if you decided the regulatory system, stress test, stay or go? >> i believe them, they have been helpful. iny have restored confidence many of these institutions. if you think about the environment when the first stress test was put in place, there were a lot of questions about whether any of those institutions were viable. the stress tests have been helpful. >> the other conversation is glass-steagall, if we look back at the financial crisis, which banks went under, let's think
about that and then take about whether glass-steagall will help. >> i do not think glass-steagall will help because i do not think it was the source of the problem. look at the-- institutions that went under, lehman brothers, bear stearns, aig, none were commercial banks, none were affected by the removal of glass-steagall. it is true that some commercial banks got into some commercial difficulty and needed government support but their problems did not stem principally from the elimination of glass-steagall. you can put glass-steagall and if you want and i would not have any expectations that it will be helpful. it may be harmful. i do not think blending commercial and investment banking was at the heart of the problem in the past or is it likely to be the heart of the problem in the future. onid: that was gary stern bloomberg a brick americans. vonnie: coming up, the ford
we have more from the newsroom. >> donald trump is praising the electoral college. the president-elect calls it, "actually genius." the system is drawing criticism from hillary clinton supporters. mr. trump's comments were a change in tune from the 2012 election when he called it a disaster for democracy. mary jo white says she will step down as sec chair in january. 68-year-old white, a political independent has not said what she plans to do next. she formerly enjoyed a lucrative law career representing banks and other clients. trump'srexit and donald election our message of middle-class frustration, still he told bloomberg tv that he does not think the idea of
brexit will spread. >> i don't think you could say what happens in the u.k. is likely to happen on the continent. the same populist, protectionist move is there, that is undeniable. i don't think that would crystallize in the political will, the strategic will to abandon europe. more says that if anything europe is needed, especially when it comes to defense and security. german police have raided more than 200 offices, mosques, and apartments related to the radical islamic group true religion. the german interior ministry says the group radicalized young people and recruited them to travel to syria to take part in that country's civil war. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. vonnie: thank you.
a quick check on u.s. stock s, most indexes are off of their lows today. the s&p 500 is up one third of a percent at 2171. the nasdaq is up 8/10 of 1%. is, let's go to abigail doolittle. abigail: it may not feel this u.s.but with the presidential election that brought the surprising victory of donald trump, it also brought some real strength to certain sectors. this is a look at a one-week move in certain sectors like .anks and bio all of these sectors are expected to do well under president trump's protectionist, progrowth policies. today, not so much. where looking at a lot of red.
construction is just getting into the green here. a lot of red. the most movement is in the banks. we go over to the bloomberg. this chart may contain some of the answer. in white we had the 10 year yield, in blue have the banking index. as the 10 year yield goes higher, almost 50 basis points and about half of the week, an amazing move in a week, so rose the banks as well as rates rise. another interesting idea is that as the bond selloff takes a pause, it is also causing -- as -- stocks to tak vonnie: and what the correlations will be further out. we have another three sessions
to be looking for a higher price from bridge america. rk: and we look at the growth of alibaba in china and the grip it holds on the country's giant e-commerce market. vonnie: easyjet will overhaul operations because of the brexit vote. the discount airline says it million in the current fiscal year. that is more than twice what it cost last year. the ceo has ordered a more efficient organization and savings. the call also maintained where the company will be headquartered. >> we won't remain headquartered in the u.k. up a new operating company, which means that will be able to operate across europe with confidence because
that is what we have been working on for the last nine months. we know that is something we have to do. america hasds rejected a $47 billion takeover from british american tobacco, that is according to people familiar with the matter. the deal would create the world's biggest publicly traded tobacco business. british american already owns 42% of reynolds. third quarter earnings beat estimates for the largest home improvement train, signaling confidence in american renovation projects. ame depot same stores were up better-than-expected 5.5%. jaguar is working on their first electric car. it is set for production in 2018. the automaker is pushing into an increasingly crowded field. her sadie's says they will offer 10 all electric models by 2025.
tesla hopes to boost their manufacturing capacity by 10 times with 500,000 cars per year by 2018. vonnie: time for our quick takes where we provide context and background on issues of interest. alibaba in china's booming e-commerce market. they accounted for more than three quarters of the nations online retail sales in 2014. they are building on the power of chinese farmers, laborers. that could add up. chinese wereion online. that is more than any other country except for india. alibaba's growth story has continued since their ipo in new york in 2014. even with china's economy slowing, it beat estimates of revenue for five straight quarters, alibaba is investing
heavily in reaching customers through smart phones and tablets as well as cloud computing and virtual reality. alibaba was founded in 1999 by a former english teacher who scratched together $80,000 from 80 different investors to start an online marketplace. he became the richest man in china with an estimated net worth over $35 billion. valuationillion placed on alibaba when it went public speaks to the bullish view when it went public, but some investors were wearing alibaba would suffer as china's economic growth cooled. enthusiasm had waned probably as some investors expressed reservations about alibaba's management. alibaba is seeking to offset any slowdown in china by expanding more quickly overseas, including in the u.s.
derihave set a goal of ving 50% of their revenue from outside of china currently that is 8%. you can go to bloomberg.com for more stories. ♪ >> ford's president and ceo is in los angeles, saying they plan to make the popular for he sport suv available in the u.s.. david: thank you. mark, thank you for joining us. bloomberg. i wanted to start with the talk you get about an hour or so ago. you said that this may be the first auto show in the history of the world it is not about cars. what does it look like inside there? mark: we are looking at trends across the world and seeing more
congestion, more people moving into the cities. we are taking a point of view of what that world will look like in 10 years or 15 years. that is why we are going through this transformation of being an auto company to an auto and mobility company. we are seeing this in many cities. it has manifest in l.a. with the first auto show that is both auto and technology. that is why we are talking about our vision of the future, of working with cities to solve transportation problems. david: fourth has made a number of investments in this area. is this something you can do on your own, or do you need to partner with a large technology company? we have partnered with a number of companies. one thing i mentioned this morning is that we work with cities on solving some of their unique mobility issues. we have partnered with a number of companies. one thing iit is really going te that it is important for us to work with others to solve that.
in some cases, we will partner with companies, and in other cases we will acquire them. which we did with chariots, a dynamic shuttle service in san francisco. david: it is a little ironic, but just at the time you were giving your speech, we had mark rose kind saying it is a difficult problem, autonomous cars, and it will be decades before we have a full fleet of autonomous vehicles. to what extent does washington and regulation play a role in how fast we can get to this? does play ak it pivotal ro if you look at autonomousle. vehicles, some of the challenges in front of us are the technology, and that is coming along. you are looking at things like regulations, which you mentioned. we are encouraged by the approach that the u.s. government has taken. it is very forward leaning on
putting policies for the rapid the claimant of autonomous vehicles. we will have to continue to work with the regulators on this because we want safe deployment of autonomous vehicles. our view is that will come out with a level for autonomous vehicle in 2021. whether it will be in a commercial application like ride hailing or ride service in a defined area. david: you probably got the word out in dearborn, but there was an election last week. we have president-elect trump. it is not too early to start thinking about what that means for ford motors. do you anticipate a shift? will there be more welcoming of this new world? mark: we are hopeful that it will be. first off, we congratulate president-elect trump and all of the congressional members that were elected. as we look at the policies going forward, we have always engaged, going all the way back to teddy
roosevelt, we have always and have a proven track record of working with policymakers. we will continue to do that to advocate for policies that drive economic growth and help the industry support that growth. david: the auto alliance came out with a request after the election to the new administration, asking them to review all regulations applying to automobiles at the federal level. is that something you would support? what would that mean for ford motors? mark: when you look at the that weecommendations support, obviously we will continue to advocate for currency manipulation rules for free and fair trade, and continue to support conference of tax reform. to your point, we want to make sure that fuel economy regulations are aligned with market realities. we always haveas in positive discussions with the administration and policy makers
on what that means, not only for our business, but importantly what does it mean in terms of providing jobs and economic growth in the united states. david: there is a review in 2018 of those economy standards. the dealt to align standards with the reality of the world, what would that look like? how would it be different from now? mark: when we agreed to one national standard in 2011, one thing we agreed to was a checkpoint in 2018, what they called a midterm review. ourant to make sure that vehicles are as easy on the planet as possible. we want to have great fuel economy for our customers. thoset to make sure that regulations are aligned with how consumers are reacting to some of the new technologies and economic realities. that is a discussion we want to have. we want to make sure our vehicles provide great customer service faction, and customers can afford them and encourage
economic growth in the country. david: besides your talk this morning on economic mobility, you also spoke about the eco-sport, a small suv that you'll be importing from india where it is manufactured. talk to us about that vehicle that is targeted towards millennials. mark: when you look at the small suv statement it is one of the fastest-growing segment in the u.s. it will continue to grow. , whichbringing this in we have sold in other parts of the world for a number of years. it is very successful. we think it is going to fit a for folkstant niche who want a vehicle to carry either their friends around or their stuff, but in a small footprint. we are excited to bring that vehicle into the marketplace. it's really complements the whole strength we have in our entire suv lineup. david: it is imported from
india. you are a global company. you ship a lot of hearts across -- parts donald trump has not made bones about his views on trade. as you look forward to the trump administration, what do you anticipate, and what changes does this mean for the ford motor company? matt: we won't have to -- mark: we will have to see when president trump gets into office and the policies he advocates. we are a global manufacturer with our home in the united states. the majority of our investments in north america are right here in the united states. just as we are leveraging our manufacturing footprint in other parts of the world, it goes both ways. we export our explorer that is made in chicago to cities around the world. we have always been to advocates for free and fair trade. we will engage positively with
the administration, talk about policies that will help revive growth in the u.s., and do our part. at the same time, we will make sure that as a global, successful company that we are building where we are selling. david: if resident elect donald trump called you up this afternoon and asked your thoughts on trade and how do you fix vehicles, what would your advice be to him? mark: the advice, if he called me up, it is very consistent to what we have given over the last couple of years. free and fair trade, and importantly with currency manipulation rules. we let the markets determine currencies, and not governments to tip the playing fields. we want a fair playing field. we know that when we can have a fair playing field and an even playing field, we can compete with anybody. david: thank you for joining us
david: this is bloomberg markets. company running some of the most exclusive markets in the world. despite their high-end hotspots, they have struggled with growth, and they brought in roeland vos to reinvigorate the brand. he is here to discuss his plan to double growth in a year. talk about your challenges and your agenda for growing the business. roeland: thank you for giving me
the opportunity to talk about it in the first place. for us the challenge will be to put out a plan that we have laid out this year to get things going and make sure we deliver on what we call the double-double. that means by the year 2020, we will have doubled the size of the company from the number of properties and the baseline perspective. david: how many properties do you have? where do you see opportunity for growth? roeland: we have 46 properties in operation spread around the world. we have a high concentration of properties in italy, spain, portugal, and europe altogether. we have a good representation in asia, in different countries where our customers love to travel. we have a good representation of hotels in peru and brazil, mexico. we are spread around the world. we think there is opportunity in
many of those destinations to continue to add to our portfolio and continue to create new opportunities for our customers to travel. david: you have seen volatility in the market as we all have. business affect your or is this high-end sector somewhat immune? roeland: not too much, but what we have seen over the years is that these types of things slowly move back-and-forth. the kind of customer base we are talking about will still take their vacations ends still still take a break to travel with their families around the world. thate over the past year we just announced our third-quarter results, and things have done very well in europe. those hotels have been performing extremely well. we had some really good results out of rio de janeiro with the liv-ex. so far we have to say that with everything that is happening in the world, we have done very well. david: let's talk about asia.
we have seen asian interest in u.s. hotel chains in particular. do you see growth in asia? roeland: we see room in asia in different countries. it is obvious that a lot of our competitors will be focusing on places like china and india. look in probably first places like the maltese, the seychelles, the indian ocean. we see our customer base is going for the experiential travel, which is not necessarily always in the big cities. we will also be focusing on big cities to get representation there, but at the end of the day there will be a nice spread of opportunities for travel. we were talking to you about a hotel atop machu picchu that you run. what would complement your portfolio? roeland: first we look at how it fits into the brand.
how does this hotel great what we call an authentic experience that were our customer base is interesting to travel to. these would mostly be smaller hotel properties, between 75 and 100 and 50 rooms. these are not the biggest hotels. but they great expanses that people will come back to for many years. that can be all over the world. david: thank you for coming in. belmond's ceo. for the finest things in life, including travel, watches, dining, and luxury, head over to the bloomberg. we will talk to james record about his new book. stay tuned. this is bloomberg. ♪
vonnie: from bloomberg world here'srters in new york, what we are watching. fisher speaks this hour about whether the u.s. is economy has a liquidity problem. plus, we looked at apple if the donald trump hits china with tariffs. discuss in our walk and talk segment, the opportunities for women without clinton. mixedl: we are looked at trading today following the big rally yesterday -- last week. the dow is trading slightly lower being weighed on by home depot along with the wing.
-- with boeing. the day is not over. the nasdaq is outperforming today which is a reversal. it had been lagging over the last few days. is the big internet stocks including facebook and amazon and netflix which is down slightly but this represents a big reversal of a four-day slide. the worst four-day slide for amazon since february. investors think a donald trump protection policy could hurt these companies considering their international exposure. looking at commode it -- at commodities, oil has a huge gain, up 5%3 . out as trying to carve supply deal to see if that goes through. we have big movement in iron and copper down.
over the last week or so, copper minutes best week since 2011. with these declines, iron recently hit a record high. the big reversal is in the bond market. we have had bond selling off quite a bit over the last week but today, we are seeing some strength represented by the 10 rally year yields on the we have seen in rates, the 10 year is up almost 50 basis points and could reflect uncertainty about what is ahead for the fed. as for what could be i had for rates, we took a look at a chart we have seen before. this is the longer-term charge of the 10 year yield. in august.t it
the trading range suggest we could see the 10 year yield creep up to 2% as a bounces off of the bottom. congestionthere was that suggested a move higher was likely. on the recent rally, we have the 10 year yield go right to the lower level of resistance suggesting we could see the 10 year yield movement perhaps trade between 2% and the current level before potentially making another move higher. david: thank you. let's check on the bloomberg first word news. mark: thank you. president obama says he hopes financial reform undertaken by greece will help economic recovery. he made his remarks alongside the greek prime minister today in athens. plagued greecet economy will need cooperation from its creditors. >> as greece continues reform, the imf has said that debt relief is crucial.
i will continue to urge creditors to take the steps needed to put greece on a path toward a durable economic recovery because it is in all of our interests that greece succeeds. mark: athens is the first top on obama's final foreign trip as president. some key players in the donald trump inner circle are meeting city.mp tower in new york among them as vice president-elect mike pence who arrived ahead of expected decisions including top national security posts. iso stephen minukan continued a top pick for treasury secretary. he told reporters that the team is working on the biggest tax changes since ronald reagan. french president francois holland says the paris climate deal is irreversible. he says the u.s. must respect the decision by the of, administration dead by the obama administration to sign up in the agreement and donald trump has
caused global warming a hoax and promised to cancel the landmark deal. aaa picks this thanksgiving will be the biggest for holiday travel in nine years. almost 49 million americans will travel at least 50 miles from home over the four-day weekend. that's 2% more than last year and it would be the most since 2007, the year before the global financial crisis began. global news, 24 hours per day, powered by more than 2600 journalists and analysts in over 120 countries. vonnie: thank you. governments around the world are secretly per pairing for a breakdown of global financial systems. highwas a prediction made -- made by jim rickets. where is all this money? >> it's everywhere.
people ask how there could be a crisis. the problem is the world created $70 trillion of debt on top of the money printing so we are more leveraged than ever. the banks in 2008 were too big to fail at now they are eager. everything that was unstable in 2008 is worse today. the crisis happens every seven or eight years. 1988, 2008. it won't be very long before the next crisis. two times were different when everyone wanted their money back, they printed money. they will not print money because they are tapped out. money market funds will suspend redemption. they can selectively shut down the banks. we saw it in greece and cyprus
and india. that comes outn of the g-20 summit november, 2014. dalio reflected on the election and said there was a good chance there would be a major reversal that would last a decade. do those analogues make sense to you? i think we are at a little point. , greatmpet economic team guys and this is the ronald reagan team. they will run the ronald reagan playbook but there is a difference. when ronald reagan was in office, interest rates are 20% and inflation was 13% and debt to gdp was 35%. interest rates of nowhere to go but down and bonds of nowhere to
go but up, reagan piled on the debt but starting from a low level. donald trump will try to run the same playbook with nothing but headwinds. and inflation is nowhere to go but up. this is like reaganomics against the high school playbook. you'll get a different result. able -- you will be able to see where the ronald reagan dollar was. as soon as it comes up -- there, 1984 but the dollar is strengthening again. the potential to happen is there but because of the strong dollar it's unlikely. but we not a conspiracy
know who the main players are. it's the central tankers. -- bankers. they went to the same schools. they all think alike. it's a group think. policiesave the same but if the initial conditions are different, you'll get different results. strong dollar during the reagan years was deflationary. when inflation is starting out at 15%, you want disinflation. with inflation starting at 1.6%, the strong dollar can throw you into outright deflation. the same playbook but different initial conditions and you will get different results. the other point is that the systemic risk does not care of your republican or democrat.
the avalanche does not care if you are a liberal or democrat. there are bigger forces at play. these cannot be stopped except by extreme measures. i'm talking about locking down the system. in 2008, money market funds could not not give you redemptions but those laws have changed. you put a dollar in an used to get a dollar out. now they can give you $.95 depending on the market. good thing?t that a >> it's a good thing unless you want your money. from a policy point of view, this is macro prudential regulation. in 1933, fdr shut the banks. we have seen all this before. when they get desperate, they will lock down the system. it might buy some time but what
get word on their merger as soon as next month. they say regulators have an antitrust concern. a successful merger would create the world's biggest chemical company. estee lauder is making the biggest acquisition in history buying a cousin met a company for $1.5 million. a -- the deal is expected to be completed next month. kellogg is cozying up to walmart. introduced its latest frosted flakes flavor. they are making an exclusive run later this month followed by a broader rollout in january. while mark is -- walmart is the biggest seller of groceries the u.s.. that's your latest bloomberg business flash. david: one of the trickiest ones we have had.
apple shares are on the rise. it declined last week on uncertainty over the donald trump trade policy. cory johnson joins us with more. x factor here is donarump trade policy. chinese newspaper that said if the u.s. puts theyfs on chinese goods, will shift to airbus and they will run out of iphones. take eight tit-for-tat approach. you can see the saber rattling. the focus will be on these companies iconic way american and apple fits into that category. the selloff we have seen in the is not as stupid
as some of the stupid things wall street has done. vonnie: we have heard from carl but we know from interviewing wilbur ross that he doesn't think that current wpo system is any good and agreements need to be made. can he decide that apple will suffer and that's ok? donald trumps of policy, apple is a conundrum. are we going to trade more under the trumpet administration? the answer to that is probably no. he says it's some trade deals are not worth having. level, if trade goes down somewhere, you look at does a lot of
international trade and counts on growth in china, you look at businesses like oracle where they have well over 50% of sales done overseas and that will matter. last yearrevenues were huge so this is important to them. on the other hand, apple can benefit. they pay a higher tax bracket companies in the nasdaq. vonnie: on how much revenue? on a lot of revenue, it's almost paying nothing? cory: these are their average taxes across all locations. if the u.s. lowers their taxes in the u.s. is their biggest market, they will see taxes come down quite a bit. law,ere is a repatriation they could repatriate their profits. or because they have debt
denominated in foreign currency, maybe they won't take such a tax hit. david: we talked about how investors are proceeding this last week am a betting on policy changes that donald trump might implement. apple says it would set aside what it would pay for taxes in the u.s. does apple navigate this? ity: in the case of apple, follows a worst-case scenario and are always developing products they will never release. they spend a fortune working on cars they will never make. i would imagine they do the same thing on the corporate side. they probably look at difference in areas.
apple has the luxury to do that will stop vonnie: are these the risks that analysts would look at? the market is not efficient. wall street is making a lot of stupid moves on stocks right now. 3-d printing was going to be the future. you've got strategists saying that sales of 3-d printers are down in consecutive years. 3-d systems saw a three-year decline. the market gets things wrong's a
that would reflect of the country's gender balanced so what does it mean now? joining us now is lisa kasner. i'm excited to talk about this story. the figure that leumi away is vote53% of women did not for a woman candidate. that's a surprising figure. is very rapid social change on all kinds of levels. one thing we know is that had she become president, she was very committed to ringing along a pipeline of women not just senior level cabinet officials but the women they would hire. that up years to have been stopped in its tracks.
anne-mariehave slaughter at a number of people we associate with hillary clinton. transition, what happens to all of those people who are planning on getting a job in the hillary clintoadministration? >> we found it may be good for think tanks and universities. there is sort of a galvanizing around advancing women in leadership even without a woman president. however, what's important to is that only 4% of women -- of fortune 500 ceos are women will stop only 17% of the u.s. congress and 20% of the congress is female. where the candidates will come or maybeears ahead
that conversation changes because these people who might have come into populating the u.s. government over the next four years are not going to get that experience that might have projected them to being an executive or candidate in the future. vonnie: there is a report after that shows that women make an economic difference as well but not necessarily in ceo positions but maybe towards. -- boards. we are hearing names about cabinet appointees but we are not hearing women's names. >> there are a few women around donald trump. we have seen kelly and conway and ivanka tromp and other names. ayotte lost the senate election in new hampshire and is on a couple of lists.
donald trump and women have been front and centered during thi campaign but we will watch to see how these next level government jobs bring in weather -- bring in women or not. vonnie: thank you. coming up, stanley fischer will an event atment at the brookings institution and washington, d.c. we will bring you live coverage of his remarks next. this is bloomberg. ♪
david: let's check on the indexes with the dow down 2/10 of 1% and the s&p 500 is up 3%. the nasdaq is up as well. some of the companies holding back the gains on the s&p 500 are companies like allergan. stanley fischer is speaking at the brookings institution. text. a prepared he says that bond market fire sales are a policy concern. he says we must watch the potential for market stress. he says the flash market events may be more frequent and he is not commenting on the u.s. , it's all fed policy about market liquidity which he says is adequate i most
measures. -- by most measures. fischergo to stanley when he starts his comments. text of the speech of market liquidity -- he joins a string of federal officials meeting this week. more on what we are likely to hear in the wake of the election, we are joined by joe weisenthal. let me take one headline -- stability benefits may out -- may outweigh the cost of liquidity? a conversation emerging after the donald trump election about what happens to financial markets. seen a huge rally in financial stocks since the election of donald trump on the belief that there will be a rollback of some of the obama era regulations.
no one knows what it will look like. signal there will be a wholesale repeal of dodd-frank necessarily. that is a matter of excitement and what it turns into is not clear. it's interesting he talks about increases instability while also more flash events and less liquidity. he is saying there will probably less bubbles overall. downside might be more short, short moves. fed andbecause of the there is so much money around and no one wants to get involved in bond sales because it is transparent. joe: one of the popular theories on flash events is blaming it on
dodd-frank and the theory that they don't keep as much on the books. they cannot act as a buffer anymore. in but on the other hand, they are less likely to have a run or a blowup. i don't think anyone will stop debating this question for a while and particularly as we get this trump era discussion. we are awaiting stanley fischer speaking at the brookings institution. the talk is all about liquidity. he will not comment on u.s. policy or fed policy. -- texthing in the test about economic policy. it raises questions about monetary policy, the nonregulatory side of the fed and where they are going in terms of to what degree they
will offset any increase in staff fiscal stimulus -- in fiscal stimulus. there have been signs of changes for a while. this will be a huge debate spilling out in the days and weeks ahead. vonnie: there are many political in events and i'm sure they will take that into account. david: let's go to the brookings institution now, the vice getting stan fisher ready to address the brookings institution at a daylong conference initiative on public policy -- do we have a liquidity problem? tanks. afternoon and -- and thanks.
the world bank was where i started in this business. pleasure to be at brookings. one which is around and which people have different views which are related somewhat with how much liquidity matters to them to their business and their profits. i will talk about liquidity first, what people say, what people who are market participants say about it and the evidence they bring and then go on. let me begin. is the abilityy
to rapidly execute sizable securities transactions at a low and with a small price impact. i have been looking for that definition. if i'm correct about martin bailey, we learned that from tobin. i could not find it in to open so i had to search around to find it. i found it in the world -- in the imf global financial stability report. the high degree of liquidity in u.s. capital markets contributed tos the efficient allocation of capital through lower costs and a mix of market based finance that supports the flexibility of these markets. that combination is relatively rare.
much bankvery denominated. regulatory changes may have altered the financial institutions to provide liquidity, raising concerns which are being brought into sharp relief by several flash events. some people called them flash crashes over the last two years. that was stanley fischer talking in washington, d.c. and we will monitor those headlines and bring you the relevant points of his speech. let's get to first word news. mark: thank you. at a capitol hill press conference today, house speaker paul ryan says he is speaking frequently with president-elect will trump and his top officials and is still formulating strategies to get the new administration off to a quick start. >> we are working hand in glove from the start.
we want to make sure we hit the ground running in january so we can deliver on the new president's agenda, better days lie ahead for our country. he declined to reveal the agenda of the lame-duck session of congress. the man reported to be resident electrons choice for secretary of state may face potential conflict of interest. rudy giuliani has made millions as a lawyer and consultant representing clients at odds with u.s. foreign policy. he reportedly took money from clients that include qatar venezuela and iranian and styles. the chair of the house committee is looking to oversee the agency he leads in congress. he said he has expressed interest in becoming homeland security secretary. congressman mccaul is chair of the committee ends says he knows the department very well and what needs to be done. bank of england governor mark carney is early -- is urging
financial services firms not to make rash decisions on moving operations out of the u.k. this is after a european central bank committee revealed there has been interest in that action. move the jobs and brexit is scheduled to begin by the end of 2017. global news, 24 hours a day, powered by more than 2600 journalists and analysts in over 120 countries. it is euro finance week in frankfurt. asked the former ecb president this question. perspective, ple signals there is a level of in the advanced
economies, not only the united kingdom or the united states but it's a message coming from our own people which is more or less suggesting that rings are going to rapidly. andcompetition of india china and mexico and brazil, the i.t. --technology of all this is creating a level of [indiscernible] and we have to accept that message and give the appropriate response. it's a problem for all advanced economies. ecb,han: when you ran the it was looked at as an opportunity for more europe on the back of a crisis more broadly. opportunity orn is that the problem? way, we had a lot of
decisions which were taken in the crisis to cope with the crisis. there were new decisions taken in the open ever nantz and open economy govern nantz, the macro economy. union, theseanking are very important decisions taken in a crisis and have to be implemented. it seems that more europe is what we need in the doubling of security will stop -- security. we need a federal border police with the migration. we have a lot of things to do it seems to me. it's not really disputed but it's difficult. is a historical endeavor. we are making history in europe and one has to accept that.
to make history is not easy. it's complicated. you do not have a blueprint. the u.s. citizens created the united states. we have a lot of challenges but the long-termc on success of the european endeavor. david: explain that optimism. on the one hand, there is anxiety about too much change especially among the middle class which creates headlands. is this politically doable? life in all advanced economies is not easy, it's complex hated. it will be complicated for a long time. and brazil andia
mexico and china will be there for a long time. expect youyou cannot would expect science and technology to surge. there are consequences oh everything is difficult. confident in the fact that most of our challenges in europe are continental challenges and not single, individual country challenges and second, i trust that on the , there is a strong in thist that we engage endeavor and a deeper union is part of our historical endeavor since world war ii.
it's a very long history. we proved resiliency in the crisis in a way which was always underestimated in the u.s. and asia. we proved capacity to be resilient and the worst circumstances. this is part of my intimate conviction that we are resilient and the project is resilient. vonnie: that was the former ecb president jean-claude tree shake. buffett pulls back on suncor by george soros puts in more money. this is bloomberg. ♪
david: this is bloomberg markets. let's go over to abigail doolittle with eric chart of the day. >> it has to do with the big story of recent days with that in rates as bonds have sold off but not including today. theoretical rally. what does it mean from a real-world perspective? we want to show this chart of a bank 30 year mortgage right which would dish -- where we see a spike. rates could be meaningful for homebuyers. perspective, this is a longer-term chart of the very same bank rate going back to 2000.
it was closer to 7% and we see now that mortgage rates are still near historical lows, holding that downtrend. the recovery in housing could continue. we look at the case shiller housing index, there is a tremendous downtrend in rates that initially helped the housing double in 2006-2007 and then we had the housing bust and that declining rate. that downtrend remains an effective and the housing market could remain firm or continue to improve. david: thanks so much. 45 days after the end of each quarter, investors scour the filings of top investors. we are following the smart money today to canada. joni is now is market bunting. -- is mark bunting. let's start with warren buffett
and suncor. we love to follow warren buffett and george soros. it's interesting because mr. off it through berkshire hathaway and a huge investment funds they back inght into suncor the second quarter of 2013. he increased the stake in 2014 from015 and brought suncor $25-40 three dollars per share. about 3% of the total portfolio. pressure hathaway been selling and have now exited at 25 dollars. aimlessly dislikes airlines but is getting berkshire hathaway into airlines. u.s. airways did not go well for
him 20 years ago. however, he is moving into these airlines which goes against his most famous phrases, saying i am o-holic. he said the quickest way to make a million dollars in an airline is to start with $1 billion. that's all out the window because he is back into airlines. vonnie: what changed his mind? we will leave it there. we will return to canada in a little bit. up, the rivalries that broke apart one of the most elite law firms ♪. this is bloomberg. ♪
david: this is bloomberg markets. the messy breakup of an elite law firm reads like a tele-novella. paul barrett talks about that story. >> the reason we are interested is they came from nowhere, paul napoli and mark byrne with their employees, to become one of the most feared mass tort law firms in new york or anywhere in the country.
they were fabulously successful in a firm called napoli bern. they won billions of dollars in settlements and verdicts. that resulted in tens of millions of dollars of fees for themselves. the cases range from the litigation in the late 1990's drug to fen fen diet subsequent litigation more responderser first who went to ground zero after 9/11 and came away sick and sued over that situation so they had a tendency toward health care related cases? >> a lot of pharmaceutical cases but also cases in other areas. the common team. was a big event or a single product that affected a lot of people and the images can be very large. they were successful at what they file a lot of
lawsuits and have a close personal relationship and one of them gets very sick in 2014, palm appellee is diagnosed with leukemia. that's were things begin to unravel. >> how do they begin to unravel? who hadartner mark bern not been the inside guy, more of the front man, was forced to run the firm. untoward things that happen going on in the firm like unpaid debts and other financial shenanigans that he was troubled by and that caused him to reorganize the firm. hisoi says while he was on and theneath had recovered, said bern was trying to take over the firm. that led to litigation between the two of them and lead to the mayhem i describe in my article.
it was from everyone suing everyone in every direction. david: you can read the most recent story in the latest bloomberg business week. taking a look at the tokets, just a few seconds go in this portion of bloomberg markets am a doubt is less than 1/10 of 1%. of the beste performers followed by utilities. the vix is under 14 today. the u.s. two-year yield is 1.004%. this is bloomberg. ♪
>> welcome to bloomberg markets. ♪ scarlet: we're live here over the next hour with stories coming out of seattle, atlanta, and beyond. to. stocks bouncing mostly the upside. tech has halted its slide. we have a look at the technical trends across the board. will opec get a deal done? you will get perspective from bob dudley. transition efforts are turning into a bumpy ride. power struggles inside of the team are hurting efforts to form a cabinet. we will get the latest. in u.s. stock market closes two hours time. abigail doolittle is here with the latest. the losing streak seems to have taken a u-turn?
abigail: it really has. overall we are seeing markets trying to trade higher. can the downturn higher on the day? putting in record highs over the last three or four days, time will tell. not too much longer until the close. right now we have the nasdaq outperforming on the same strength that scarlet mentioned. we have a very interesting chart on the bloomberg. looking at 913, this is a percentageart of the of s&p 500 stocks above the 50 day moving average. that's bullish, suggesting that buyers are very interested. we have seen in the recent rally in stocks that the s&p 500 gained nearly 4% last week. we have seen it spike higher. more than 50% of the stocks in the s&p 500 are in fact above
the moving average. we are seeing an uptrend here suggesting that that percentage could rise closer to 80%. suggesting that more strength is ahead for the s&p 500. is very strong, having its best days since the election is the nasdaq 100, going back to what scarlet was talking about. internet stocks, facebook, amazon, alphabet, we are seeing a nice recovery in microsoft. today, sector doing well up for its first time since the election is the utity sector. actually, it is showing the decline over the last five days, trading higher for the first time over these last five days. this is a rate sensitive sector. when the rates start to go up, the dividends look less attractive to investors. rates are down slightly and it
could help to explain why we are seeing strength utilities. -- in utilities. oil, big monster move, up 5% as the highs of the session are having their best day since the end of september. that was after the algiers deal. they were working to ink some sort of supply-side deal. opec is still trying to hammer out the details of that deal. we will have to see, julie. we will, indeed. they haven't made much progress so far. this afternoon, mark crumpton has more from our newsroom. mark: republicans have just nominated paul ryan as house speaker again. he got unanimous support from the house republican caucus in a private meeting to select leaders for the 115th congress. the formal vote will be held in early january by the entire house membership. ross is the leading
candidate for commerce secretary according to politico, citing people familiar with the matter. the founder of wl ross and an economiclready adviser to mr. trump. there is no immediate word from the transition team on that report. president obama is on his final foreign trip in office. as expected, he is being questioned about the surprise election of donald trump. the president says that his priority is to ensure a smooth transfer of power. president obama: i still don't feel responsible for what the ,resident-elect says or does but i do feel responsibility as president of the united states to make sure that i facilitate a good transition and that i present to him, as well as the american people, my best thinking, my best ideas about how you move the country forward. mark: the president also
compared mr. trump's lies to the decision to leave the european union, saying that both outcomes were driven by fears of globalization and suspicion of government institutions and elites. sentence was death struck down against the ousted president. he was facing execution for his ine in the mass prison break the uprising. this ruling means that he will get a new trial, along with five other leaders of his now plan -- now banned muslim brotherhood group. global news, 20 four hours per day, powered by 2600 journalists and analysts in over 120 countries. i mark crumpton, this is bloomberg. julie: julie? what can we expect -- julie? julie: what can we expect as president-elect trump gets ready to take office? you were not necessarily looking at what he was going to do, you
are looking at the charts, as you do. one of the things that struck me in your notes, talking about the highs that we have seen in the be a short-term record in the s&p 500 as well. don't see why not, at this stage. of the small caps it is comprised roughly of 2000. that comprise the s&p 500 should follow suit. we are well above the 200 day moving average. successful test. do we go back to those levels? katie: it's right around 2194. it's a very minor resistance level. again, with new leadership behind the market, improving momentum, i think that we can get through it.
the bond market is the big area to watch. maybe more so than the stock market. the we are seeing a bit of a pullback today in yields. a littleve is judged bit by being overdone. we were talking about the strength index earlier, but what kind of omentum indicators would you look at with regards to the 10 year? katie: obviously that was a fast and furious move in the yields. we do have exhaustion on the upside and downside in the treasury prices. that's based on the denmark indicators -- tom to mark -- demark indicators. the should be a breakout following the consolidation phase. julie: i'm curious, when you look at technicals, does it change revaluing of those moves
question mark pimco has made similar comments. that that was it for the bond rally. that was the low yield for prices after a 30 year gain. i wouldn't disagree. i think it's too early to tell back to thet going mid-80's, to get out of that channel we really need to see it climb above 3% at this stage, giving confirmation that this is more than just a countertrend move. something that could last for years, not just months. scarlet: of course, as yields move higher, dollar strengthens. as you know, when you look at the charts, it's somewhat in the upper bound of a long-term trading range. what: that's right, that's i watched, too. the dxy has come into resistance. it's a psychologically significant level within that
range. we have seen lots of long-term momentum. there has also been improved momentum for the last few days. testing resistance, not convinced it will breakout. of weeklyke a couple quizzes above the level. enough to get ahead of itself. scarlet: when you look at currency pairs, which one informs dxy the most? are you paying attention to dollar-yen? i am. the biggest footprint in the index is several major currencies against the dollar. the dollar-yen is a big one. we are looking at the pound as well. what about commodities? copper has been interesting. the huge winning streak that we saw for copper, it's a huge winning streak. onhe bac somhi like
that, does it have enough momentum to keep going? katie: i think so. it appears to be playing catch-up with the others. it just now has advanced from has phase and in doing so climbed above that resistance to find a cloud model but phil seems to be relevant for those commodities. the breakout looks like it's real. the possibility for higher commodity prices in general. scarlet: i want to circle back to stocks once again. dan curtis did these charts -- he did all the rest of these charts, we should mention. those namestio of to the s&p 500. as one goes down, they are underperforming. only today have we seen the bounceback. what do you make of the same momentum to the downside. are they oversold right now? katie: they are. it may take a couple of weeks to get anything positive from a technical standpoint. there's been a definite loss of
leadership there. in a way it reflects a spreading out of the valley to more small and mid cap benchmarks. rallyingreally strongly. you talked about the exchange of leadership. looking at the s&p 500 overall, is it at all the concern to you for the potential for a continued rally? katie: the broader rally is better, in fact. it tends to have legs to it and is a bit more sustainable. we can see a breakout in the s&p 500 and beyond, marking a major shift in sentiment, which is very bearish going into the election. julie: thank you so much, katie stockton. appreciate it. depott: coming up, home sees sales estimates last quarter with shares falling today. we will take a look at the reason why it is pushing down
scarlet: this is bloomberg markets -- "bloomberg markets." home depot, a drag on the markets after topping estimates. the reason? they failed to raise their revenue forecast. this implies a further sales deceleration. let's take a look at home depot in today's "the numbers don't lie." pretty consistent growth, you can see that this fiscal year the pace is expected to slow down a bit, but at an estimated 15% there at the end. impressive nonetheless. riding the earnings performance
at a streak of 22 straight quarters of comparable sales sales, this quarter top as americans continued to pour money into their homes. home spending is critical as sales often correlate with the remodeling market index. that's the blue line up there. asking how much work they are getting. is -- increased for the index. every singly seen lower demand for big-ticket categories, like appliances. but they said they are not seeing that photo. rising 11% over the past quarter , a big driver of same-store sales. big-ticket purchases increase as americans tend to feel more confident in the value of their homes. the white line tracks a bounce the and home prices as orange bars trend lower. yet with the increase in
property values hitting its fifth year, the concern is that americans may be running out of projects to complete or diverting their spending elsewhere. we will find out if lows is seeing the same trend when it reports tomorrow. julie? very much.k you no shares of lows falling along with home depot. next, looking at fierce competition in the streaming music business. this is bloomberg. ♪
julie: this is "bloomberg markets." scarlet: let's turno the music business, which is obviously undergone radical change over the past decade. for more we want to hand it over to our colleagues, carol massar and cory johnson. want to welcome everyone to bloomberg radio. we want to talk about streaming music. napster has announced a bunch of
new partnerships. let's talk about it with the cfo , whopster, ethan rudin joins us from seattle. why don't you break it down in guys of the deals that you are doing? ethan: we are extraordinarily excited about what we have in store. as you may want no, i spent some time in here a little while ago when we were on our growth path from one million to 3.5 million subs. now we are super excited, a lot in the growth has come form of partnerships with mobile carriers. one of the most recent ones we announced business with is sprint. excited to be a music partner with them. you know, a lot of our strategy going forward is to become more of a platform play. ,o more of these partnerships move away from carriers. we have announced a partnership with lufthansa.
we have announced a partnership with deep -- retailer all the -- aldi. we want to remain competitive. cory: competitive with whom? who is -- what is the business model here? north of 200 about million in revenue. our business model is a simple one. to create the very best music streaming service. we are customer centric and focused on the features and catalog that get our customers excited. we are focused on personalization and we want to who facilitate new music discovery for consumers everywhere who may not be up to proposition ofue a full on demand service. i feel like you are alluding to it, we can compete head-on with apple music. amazon's new music offering.
with spotify. healthy respect for those competitors, we have been around the longest and our work is really never done. -- youhelp me out here are doing this partnership with sprint, giving you access to 50 million, 60 million customers. how many do you ultimately anticipate will sign up with you after that one free month of programming. that's a great question. obviously we can't comment specifically on our projections, but given the audience, given the people who will be able to do carrier billing, we have a that will of success help with our brand. showing folks how to use the showing what the need states are. a lot of people out there don't
realize that on streaming music services you can download to your phone. how many --t point, it seems to be one of the fundamental keys to your business model -- are you going to be the only music service for most of your customers? or will most of them have a handful of services? like a cable television subscription? or will it be someone who has hbo, cinemax, netflix, lots of different services? a reallyain, it's fabulous question. you guys are spot on. we view our place in the universe as a replacement for going to the record store. we are focused on the best merchandise product for consumers, facilitating music discovery. about it, there are many different retail stores covering the verticals. we view ourselves in a field of a universe that can have several participants.
based on people's emotional connection to our brand, to the product that we serve. a sticky product. once you are on us and create playlists to go to the gym, for your children, for the car, these are unique states. emotional moments in the day. music is a daily habit. customers and we want them -- carol: it sounds interesting, it makes sense, but as cory johnson said, there's a lot of competition and ways to go. i understand that you can't share some projections, but isn't that a result of the piece of the pie that you hope to get from these partnerships? ultimately i would say that there are a lot of potential people out there who could be paying for music that just choose not to today because of all of the free options available to them. given that we have been at this
for 15 years and we have seen we market trends, over time have he assertion that those free services will not be as valuable to those tumors has the capabilities over time will ultimately have to be peeled the competition cannot be who gives away the most music for free. there are publishers. all sorts of rights holders. i don't think that they will be terribly excited about a future that consists of free music given away in perpetuity by people who are not incentivized he has they are busy selling other things. carol: maybe moving away from that free music model. we've got to leave it there. thank you for joining cori and myself on bloomberg radio and television. ethan rudin, cfo of napster, joining us from seattle.
scarlet, julie, back to you guys. scarlet: thank you very much. that was carol johnson and -- cory johnson and carol massar on bloomberg radio. you can find them on bloomberg.com. now time for a bloomberg business flash, semi-shareholders have approved the entertainment takeover offer , making the chinese believe the world's largest movie theater operator. -- billionaire the world's largest theater operator. the conclusion of a scorecard ranking major retail policies on harmful chemicals, walmart has the top spot, followed by target . amazon and costco are the lowest ranked for ingredient transparency. the report ibeing released tomorrow. essay lowder is buying from a
today's movers. starting with metals, donald a breather today. there could be some profit taking as traders weigh the policies of a trump presidency or essentially as folk judge the big run that we saw on copper as overdone. a little bit of a climb here. two thirds of 1%. reversing to, also its biggest creed a year. signs here that the prices went to far, too fast. huge, only up 2/10 of 1%. crude is rebounding in a big way. oil moving not so much on the election, but rather on the prospects of an opec production cuts. it has been an interesting move as they make a final push for some kind of a deal.
scarlet: oil, one of the big movers here in the commodity complex. cutter, of jerry a, said to be -- qatar,e deal algeria, both said to be leading the opec deal. what heed bob dudley thought would happen at the meeting. bob: prices have gone up to about 54, than 44 this morning. these are low levels. we will see. i don't have any special insight. but we will see. this looks like a time where they will have some very serious discussion. do you expect agreement? bob: i don't know. the statements from the iraqi oil minister confuse me a bit. we will see, there's a lot of behind-the-scenes talk.
what happens to the oil market? the oil price? bob: i think we stay at a level we are at. erik: pricing in failure? bob: people are pretty pessimistic right now. i think you will see volatility around it. erik: there is a joy -- a joke going around about opec and what it stands for. [applause] if you look at opec and can't get the participation -- if the nigerians ask for exemption -- if the iraqis, irani and, ask for exemptions, , ifthe rest of -- iranians they ask for exemptions, can the rest make it? it would surprise me if they cut that amount. i think they will try to reach some consensus as an objective. what other russians going
to do? few private companies know russia as well as bp does. bob: yes, we worked there for 25 years. listened to the statements of president clinton. -- president putin. they said that they would, by extension, not do that. they are sending mixed signals as well. erik: which one would you bet on? the prospect like of $40 oil, so i think there will be some consistency throughout opec and non-opec countries. here's what the problems, of course. the supply picture has gradually improved since that algiers meeting in september. knowing the market as well as you know it, how much would have to be taken out in terms of capacity to drive prices back to, say, $60 on average? if you look at supply and
demand, it's generally imbalanced right now. ands growing in europe north america. it's about equal, but you have this tremendous level of stock around the world and it will take a long time to drain it off. if there were some substantial cuts, that would send a signal. there's not that much in terms of capacity in the world. how does the trump election affect the global oil market? bob: i don't know. it has drifted down a little bit . i think that is around the opec data numbers. it does come up in september, october. i don't know, we will wait and see. fashioned himself a champion in the u.s. fossil fuels industry and announced himself an opponent of climate deals. bob: i really have no idea. we will just watch and see. president is a
very complex job. when you get in there and see what it takes to make some of these big changes in direction, it's not going to be overnight. erik: let me ask you a question you can answer, then. bp and the number of oil companies supported the paris deal. do you change your mind if trump wants to kill it? erik: not at all, not at all. we got this climate initiative. we are going to keep driving to try to develop the clean technology for carbon capture use and storage. we will try to make sure that we get rid of our methane emissions , the greenhouse gas. we think that gas is the clean fuel of the future. be 2 billion people on the planet in 2035. was bob dudley, from ara sdia. mark crumpton has more from the
newsroom. mark: donald trump is praising the electoral college. in tweets today he says that it is actually genius and brings all the states into play. the system is drawing criticism from supporters of hillary clinton. his comments were a change from his views during the 2012 election. at that time he called the electoral college a disaster for democracy. introducexer plans to legislation to eliminate the electoral college. the california democrat says the bill was inspired by donald presidency,g the despite hillary clinton taking the popular vote. senator boxer calls it outdated and "an undemocratic system." house democrats have decided to delay the leadership elections and whether they will keep nancy pelosi as their leader. they will now take place on november 30. democrats gained seats in the election, but not as many as initially expected.
the former central bank president says that brexit and the donald trump election are a message of middle-class frustration. he said he doesn't take the idea of frexit. . -- brexit full strength. >> it is likely to happen on the continent. the same populist, protectionist md is there. -- that's undeniable. but i don't think it will crystallize in the will to abandon europe. he says that if anything, more europe is needed when it comes to defense and security. crumpton. this is bloomberg. scarlet? thanks so much, mark.
scarlet: this is "bloomberg markets." i'm scarlet fu. julie: and i'm julie hyman. power struggles within the donald trump transition team, highlighted by the abrupt departure of mike rogers. two people close to the transition said that he had been fired and that it was orchestrated by the son-in-law of the president-elect, jerod kushner, one of the most influential voices in the campaign. ben brody joins us now with more from washington. now, this is all said to be
stemming from friction between kushner and chris christie? is that what's going on here? then: that's what we are hearing that's all we are hearing. we are also hearing that the president-elect may be unhappy with the pace of the transition. as you mentioned, there is friction between gerald kushner and chris christie. a former u.s. at tuesday -- prosecuted the father of kushner successfully. seems like a bit of a personality and family clash that goes but back about a decade here. it may be influencing whether or not the team can step up when it comes to reaching out to the defense department in making those very basic moves that are really important for a transition. -- julie: presumably if there is bad blood, wasn't that
around before? how it was chris christie even temporarily the head of the transition team? when these dynamics have been in place before? we heard whispers that there were tensions between them and that they were working together just fine. it may be that kushner is trying to make his stamp a little bit more on the administration. it's also worth noting that chris christie, his political star is falling a bit given the testimony and the conviction of his former aides in bridge gate. kushner maybe moving because of that. that's one of the things that we don't necessarily have a clear line on. all we do know is that he seems to be falling and that kushner seems to be rising. scarlet: would you call the transition team on schedule,
behind schedule, ahead of schedule? is it odd that we haven't heard directly from president-elect trump? ben: they definitely seem to be a little bit behind. as i said, they haven't really stepped up. as we heard a couple of days ago , they haven't reached out to the state department. they haven't reached out to the defense department. we believe that part of the reason that kristi was demoted was that things were supposed to move faster and they will be deploying parts of the team to go into those agencies and cabinet departments and look for the ways to reform them, to make some key staffing challenges. when you look at the records of where president obama was in 2008, the last time the country was preparing for a transition like this, they had the key staff in place and had already made cabinet determinations and narrowed them down to two or three people before the election. it seems that they definitely are a little bit behind and it
does specifically seem that the vice president-elect, mike pence, is trying to push things along and do sign off on who this cabinet is going to be. even: it seems as though though there is infighting in the transition team, where there is not as much tension is between the incoming administration and the sort of congress republicans in congress , right? looks like paul ryan will not have a problem here being reelected a speaker? that's extly correct. we had been forecasting that the republican congress was going to have to do a lot of soul-searching, but now it doesn't seem that way. the key here is naming reince priebus, the current chairman of the rnc, a close friend of paul ryan going back to their days in wisconsin politics, naming him the white house chief of staff. they believe that there is going to be a clear line between the
paul ryan establishment wing leadership of the republican party and the white house. the office adjacent to the oval office and the person who will be controlling the president's schedule. things seem to be moving along there. in the caucus they have said that they are perfectly happy to what ryan back in leadership as speaker. scarlet: thank you so much, ben brody. pretty broad overview of what's going on there in washington. staying on politics, president-elect trump has made a promise to dismantle the dodd frank act. the law, we should note, contains provisions that strengthen their ability to constrain pay packages for ceo's. how might the working-class voter see the lack of checks on pay? certainly, repealing dodd-frank
would be kind of counterintuitive, given that he was really supporting and advocating. issue that you run into. no big surprise that chump is not a fan of regulation, but these rules that were put into dodd-frank, designed to curb executive pay, like having executors giving nonbinding votes on executive pay and instituting fallbacks that countries -- companies could take if they commit a crime, plus having them display a ratio between the field and medium worker, it was all put in place with the average american in line -- in mind. a large extent, these forgotten americans have helped trump to gain the white house. repealing these measures could really run counter to his
political agenda. -- julie: so, what happens if they get rid of it? will ceo pay go up? they are funny that way -- ben: they are funny that way, they never have the intended consequence of lowering ceo pay. executive pay has continued to go up since then. what has happened is investors have more tools. companies have become more proactive in going out to say -- hey, this is how we want to pay the executives. it makes sense, what do you think? it has put more into the conversation of performance and made sure that things like oversized cash-based payments, we don't see them as much anymore. it's much more equity-based.
there's a certain engagement that we have seen play out over the last couple of years. what about investors? so, investors will probably want to see these provisions stay in place. especially the nonbinding advisory vote on executive compensation that public companies have been having to hold at least every 30 years. julie: what affect does a nonbinding vote have, if it's nonbinding? essence, the argument against it is that it is just a display if ito -- display. bigger it gives them a bigger lightning rod.
there is no binding effect, but the directors really care about this. it's just really bad pr for them. interesting part of dodd-frank that might have some consequences. appreciate it. abigail? abigail: looking at the lasting reversals of the big postelection moves, including retail. we have the s&p 500 spider retail etf down today, for its first down day in five days. the best four-day winning streak for the etf. explaing that they may at citigroup as a trump on. one reason why is that we have a mixed bag of losers in the retail sector, including sally beauty, dick's sporting goods, and the finish line.
sally beauty is clearly the worst performer there. enough to cause raymond james to downgrade shares to levels to underperform from outperform. saying basically that he has lost patience with the story. dick's sporting goods is down sharply on a third-quarter report, guiding a lower. that weakness is dragging on the finish line. one bright spot within retail, the auto parts stores, led by advance auto parts. moving to 15% on a better-than-expected third-quarter. one surprise is that kevin tynan said that he thought the company was on the defensive relative to the other three companies. susquehanna did upgrade it to positive with price targets of $190 per share, suggesting that they could climb from the current level. finally, bringing it back to the election, what has performed
better? ricks and mortar or e-commerce? this suggests they are underperforming with a retail spider etf outperforming. right now, ladies, it looks like bricks and mortar traditional retail is outperforming amazon and e-commerce. we shall see if it lasts. julie: i wanted to mention that the dow has now turned higher. it is once again on pace to close at a record. not on a intraday basis, but if it closes, where it is right now, it will be another record for the industrial average, continuing the outperformance that we have seen since the election. we will talk more about that and emerging markets, coming up. this is bloomberg. ♪
markets." scarlet: markets headed for the first gain since the donald trump victory in the election. half of this year's gains signaled a retreat from 2011 etf currencies. we will be digging that into that later today and the joe weisenthal joins us now for a look. something they have brought up, time and again. he doesn't like the developed worl the political uncertainty and tighter monetary policy. joe: it's really interesting. there are these crosswinds. there isveloped world this policy uncertainty. trump, the election is coming up. hard to feel much good about the developed world. on the other hand, everyone knows that there are issues with the emerging world. you could kind of make a case to
be negative on everyone. people are already pulling money out. looking at the etf that tracks the emerging markets on the bloomberg, we have definitely seen money come out. , that's the fun flow and we have seen a bit of a streak where the people have already been pulling out their money. anders: joe: it's cool to look -- it's cool to look -- joe: it cool to look at because you can see them with a snapshot pulling in the taper tantrum. this idea that we have higher rates in the u.s., uncertain economic pictures, no one wants to be out. i go back to the idea that they say the outlook for the developed world doesn't look so great. i mean, so much of what happens in the emerging market of hands what happens in the dollar. they are really not in a position to determine much without looking at what's going on overseas.
there was a really interesting international bank report saying that the dollar needed to be fixed. want to understand volatility in the market? look at whether people are rushing to buy dollars or not. looking at how brought it is when people are hoarding their dollars. julie: the argument is -- we should be nervous. joe: it's interesting, something to watch. scarlet: all right, joe, much more on that outlook later on with charlie robinson of renaissance capital. up, a deanag friedman joins us and we will interview her on the potential rollback of regulation. this is bloomberg. ♪
welcome to "bloomberg markets." we are live from bloomberg wrote headquarters covering stories out of washington, london and frankfurt. stocks try to close in the green. the dow making a comeback. we are marching markets at the close just and hour away. edina freeman will join us in moments within outlook for the exchange business. scarlet: and the latest comings and goings from trump tower. town over is in disagreements emerge over the selection process. abigail doolittle has the latest. closel: the fourth record in a day after a wishy-washy day of trading, we now have a nice
rally. a robust rally for the nasdaq. talking, the dow right now is on pace for the fourth record closing high in a row. so real strength here for the stocks. into the bloomberg and we see the imap for the s&p 500, we see lots of green. the top-performing sector is energy. not too far behind is information technology up one point 6%. let's take a look at both of those as far as energy -- even driven by a huge move up in oil. over five point 5% at session highs. the best day since the end of september as opec is talking about being close to inking a supply cut deal. not surprisingly this is helping chesapeake energy, murphy oil. taking a look at the technology
winners, we see the big internet stocks trading higher including andbook, amazon, netflix alphabet. reversing a four-day decline, the worst four-day decline for amazon. this was explained earlier this week by saying these companies could be hurt by the protectionist policy of donald trump but now investors seem to be looking past that to some degree. has stemmed bonds for today. yield, 10e two-year year yield and 30 year yields trading lower actually, the two-year yield is unchanged. tells us thatield bonds are strengthening to some degree but it has been an epic overup or rally in rates the last few days. the 10 year yield gained as much as nearly .5% or 50 basis points since the election.
the question is -- what is next for the 10 year yield? we going to the bloomberg and take a look -- bear with me as i all up the chart -- this is longer-term chart of the 10 year yield, one we have been using for months. this is the trading range over the last few years. in the summer it was closer to 1.5% but it appears to be higher based on this range. the fact that a touch the bottom means it could touch the top. top andhas touched the moved higher. this congestion suggests that it could go higher all the way closer to 2.6 5% and maybe even 3%. hitting eight resistance, there could be consolidation ahead for the 10 year yield. you the first get word news. mark crumpton is in the newsroom with more. expected, obama is being asked about the surprise
election of donald trump. in a joint news conference in athens with the greek prime minister, the president says his priority is to ensure a smooth transfer of power. president obama: i still don't feel responsible for what the president elect says or does. but i do feel responsibility as a president of the united states to make sure there is a good transition. and i present to him, as well as to the american people, my best thinking. my best ideas about how you move a country forward. mark: the president compared donald trump's rise to the u.k. decision to leave the european union, saying both outcomes were driven by fears of globalization and suspicion of government institutions and elites. donaldtruggles inside trump's transition team are slowing efforts to form a new government. that includes what some say is an attempt by his son-in-law to purge allies of chris christie.
chris christie prosecuted his father for tax evasion and witness tampering. carson won't serve in donald trump's cabinet, according to his close friend and business manager. carson had been managed -- had been mentioned to lead the department of health and human services and the department of education. the washington police chief says the promise to deport millions of immigrants won't affect his policy of staying out of the issue. chief beck tells the los angeles times his officers are "not going to engage in law-enforcement activities solely based on somebody's immigration status." he says it is not the lapd job to work on the department of homeland security on deportation and that will not change. 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. scarlet: thank you. operators have been facing a massive amount of change in the last few years. a new ceo will take the helm of one of the biggest operators in the u.s.. betty liu is joined by adena friedman. adena i am indeed with friedman of the nasdaq. thank you for joining us. thank you for having me. betty: i'm sure you have been congratulatoryh messages and notes and you are coming up for air. we have all gotten to know you in the last few hours. those of us in the market have known you for quite some time but you have risen through the ranks in the nasdaq and you will be taking over in the top position. you have been there for almost your whole career? i joined nasdaq in 1993
and i have three years at the carlyle group but otherwise, my entire group there. betty:'s you ever think you could end up in this position? adena: no, i don't think i could have predicted this. changes might we expect, come january 1? adena: the great news is that i have been working with bob for 10 years. and most noticeably when i came back as president, he and i partnered together to make sure we optimize the business. and i do feel that i have my hand print on the vast majority of what we have been driving towards and what we have been focused on in the nasdaq. so my job is to continue the journey that we have been on to make sure that we continue to be a critical market for internet for -- market for infrastructure providers. betty: bob has been focused on technology, for instance and expanding those capabilities.
will that be a major focus for you, going forward? technology is embedded in our dna. it is how we got started to be the first electronic exchange so i think that will continue to be our focus. how we can bring emerging technologies and drive them to in the capitalts markets as effectively as possible. greatat is coupled with client service and regulatory operations and all of the other operation things that come with being a world-class exchange. betty: is there anything , aserent that you might do much as you can reveal? anything we might expect to see out of the nasdaq? adena: generally speaking, we toe been transforming nasdaq a global technology provider. and i expect i will continue to take that journey, with the clients and with our employees as we continue to be a great exchange operator.
let's talk about operations. there is a lot of uncertainty around policies in general, just hearing from president obama talking about what may or may not be expected and what he is responsible for and not, anymore. and there is a lot of talk as we heard from president-elect trump about rolling back regulations. that going to affect the nasdaq? how do you prepare for that? adena: to the extent that we have a republican administration and they continue to show a pro business oriented organization comes with a level of balance and regulation. one of the significant areas of thelation has been dodd-frank. and while there are a lot of good safeguards put in place within the industry, coming from are alsok, there unintended consequences. most noticeably that the banks are no longer any position to
offer much-needed liquidity into the markets that we operate. so we yet have to see an opportunity for dodd-frank to be modified to allow banks to take before they provide the important liquidity. betty: modified or retracted? ofna: and a norm is a lot work went into the creation of dodd-frank and there were a lot of reasons for it. we really recognize the history that we come from. and we also know that when you put in a new regulation there is an unintended consequence that may come with it. so how can we make sure that we are modifying the regulations to make sure that it really is, in fact, having the impact you want it to have. that, ao would you say president-elect trump is good for the exchange or financial market? adena: from what we have seen so far, one weekend, i would say it republican administration that has a pro-business orientation
is good for the financial industry. cuty: and he has pledged to back on corporate taxes. how big of an effect will that have on the exchange? adena: generally speaking, if you have tax policies that they are considering in terms of potential changes in cortex rates and holiday and other things like that, it makes it so the companies can optimize the cash they are regenerating and operate business appropriately and reinvest in growth, it is good for the economy. betty: back on the business of the nasdaq, it isn't just the nasdaq but exchanges in general have been going to a consolidation phase. and your exchange is no different. you expect that to continue? do you think m&a will be a big part of the exchange? been: i certainly have working hard with bob over the last decade to drive growth through a combination of acquisitions and organic growth
opportunities. and i think that is a good bounce you have. because there is always a opportunity to drive scale into your business. closely related adjacencies that expand the relationship with your customers. has been more inquisitive than others, in some respects. adena: we have brought in a platform more broadly than others for acquisitions. there have been acquisitions in the space because it is a scalable business. but we offer these acquisitions to broaden the scope of what we do. we now have a world-class technology business that provides technology to 85 businesses around the world. we have the world leading smart surveillance business that was born out of an acquisition that we did and we have the corporate solutions business which is a sweep.- which is a 75% of our revenue is recurring
in nature on a global scale. we offer a wide range of technologies and services and that has grown out of this acquisition and some organic initiatives as well. betty: you mentioned earlier today about the ipo market and your first thought the market would continue to be busy through the end of the year. there has been a lot of volatility, as we have seen. and some of that may have been answer by the decision we saw volatilitybut if the continues, will it threaten the ipo market? tona: it is difficult for me look out two quarters and know what the market will look like. it isms of how inviting for investors. but we see a strong pipeline of companies that are ready to go this fall we sought recovery in ipo's with more ipos coming to market and great tech ipos coming into the market. and we think there may be one more opportunity for companies to come out before now and the end of the year.
and next year is a new year. but we definitely see an incredibly strong backlog of companies that want to come. betty: how do you get them into the nasdaq? is it about fees? the best honestly have value proposition for public companies, looking to go public. we have been establishing relationships with them as a private market and allowed them to have liquidity privately. and in terms of governance ofhnology -- we have, all those they're available to the companies, in addition to the amazing visibility capability. we give them a whole suite of just to create visibility for their company as a public company. and for the largest companies we
have the nasdaq 100, which provides them a nice investment in their stock. so we have a whole range of things and as a result we have had a 74% win rate of ipos this year and over 80% in tech. over $100 billion of market cap come from new york to nasdaq over the last 12-18 months, as we have really shown our value proposition is the best in the world. betty: before we go, you have long been ranked one of the most powerful women on wall street and even more so now. make your ownto personal mission, given your position, to further women in corporate america? given where you are now and where you are going to be? are you going to make that part of your personal mission? tona: i certainly do want encourage young women who can come into financial services. it is such an exciting and
dynamic industry. it is challenging and ever-changing. there is an incredible learning curve that never ends and there is so much we can do, particularly in the financial technology space, to drive economic growth in the capital market. so i see it as the best place to come. and i would like to encourage more women to come into the industry and through our own initiatives, to make sure that we keep them and grow them as they further their careers when they are ready. so i don't know if it is a personal mission as much as i really want to make sure they see that there is a past two great responsibility and great opportunity within the industry. betty: thank you so much for joining us. ofna friedman, incoming ceo the nasdaq. scarlet: a great conversation. coming up, we follow the markets as we head to the close. take a look at how things are faring right now. the dollar firming up a little bit.
scarlet: this is "bloomberg markets. julie: time for a look at the bloomberg business flash. the founder of the world's largest hedge funds say donald trump selection is a major turning point for financial markets. ray dalia said there is a good chance for a major reversal that lasts a decade. this will be marked by more inflation. u.s. areunds in the falling out of love with hedge funds. because ofvestments
mediocre results and high fees. according to a survey, more than one in four foundations from universities to hospitals, are doing the same. many demand lower fees and they are getting it. volkswagen is close to resolving a key aspect to the emissions cheating scandal in the u.s.. vw has reached a deal with regulators to fix or buyback 80,000 vw, audi or porsches. they will buy the ones that are too old to be fixed. businessour bloomberg flash update. still ahead, financials have been flying high since the trump election. jpmorgan is the subject of today's options insight. this is bloomberg. ♪
markets. julie: time for options insight with abigail doolittle. abigail: joining me for today's option insight is kevin kelly from recon capital. so the election is over. we are seeing tons of moves across asset classes. what are your thoughts? it is interesting if you look at the types of volatility that is creeping up. if you look into the 20 year treasury etf, you are seeing that it is risk-free. abovee seeing that trade 18 which is pretty high compared to the s&p 500 at 14. then if you start to look at the dollar, the dollar etf, trading relatively speaking, that is pretty high. so you see these asset classes in aopportunity as we are lame-duck opportunity presidency right now. interesting
thoughts. you mention the dollar. the bloomberg dollar index had its best week since 2011, up nearly 3%. do use -- do you expect that to continue? see the expect to strength continue. you are seeing this happen in the call of the etf. so you are starting to see people position themselves in that regard. about five times the amount of calls being traded versus the puts. signaling the dollar going higher from here. especially when you see the implied volatility, high and above 10 percent. abigail: another winner is the financials. up more than 11% for the best week since 2009. what are your thoughts? lex the financials is really where everyone is trying to position themselves. as of 11:00 a.m. we saw calls being traded in the financial sector etf, pretty significant
considering the move it has already had. it is pretty important to dissect how the etf is constructed. work shire hathaway is the largest holder and that has really helped it's down from bank stocks like jpmorgan. it also has a eyed you and their assignment so a good way for people to play the bank move is to actually get into the names like jpmorgan. so looking out to february, and because there hasn't been a big move, you want to head yourself. because options are cheap right now relative to their historical variants. so volatility is compressed because all these people are buying. and what you want to do is buy the 75 february puts and sell against it. it is cheap. it is really great, especially because we don't know what is going to happen. think about this. jpmorgan has moved about 14% in to last five days compared
the financial sector of 7%. so this is a great way to hedge yourself or put on a bearish bet at a cheap cost. abigail: thank you for joining us. scarlet: thank you. just ahead, we take a look into the long-term outlook for emerging and frontier markets. a.m. having a big year despite the recent selloff following the election. this is bloomberg. ♪
people familiar with the matter. wl 78-year-old founder of ross and company is already an economic adviser to donald trump. there is no immediate word from his transition team on the political report. house democrats have delayed their elections on whether to keep nancy pelosi as their leader. elections had been scheduled for thursday but now we'll look on november 30. democrats gained seats in the election but not as many as initially expected. a week after losing the presidential election, hillary clinton was the winner in new hampshire. that brings her electoral college vote total to 232. still officially undeclared is a michigan where trump has a razor thin lead. in egypt, -- struct on the death sentence against morsi. he was facing execution for his role in a mass prison break in