tv Whatd You Miss Bloomberg January 23, 2017 3:30pm-5:01pm EST
people back to work. we're going to use common sense. we're going to do with the way it is supposed to be done. we're going to stop the areculous trade deals that taking people out of the country and taking companies out of our country. i think a lot of companies are going to come back to our country. these that left are going to come back to our country and they're going to hire a a lot of people. it is inconceivable to me that this was allowed to happen in the first place. and i am not blaming president obama for this, i am blaming many years long beyond obama. this is been going on for decades. it is a trend that we are going to stop cold. we started today, which is my first official day. although actually started from the hour i got here. this is the day we wanted to legislation.the
if you have any questions, let me know. [inaudible] >> at the appropriate time. >> that was president trump speaking earlier with union leaders. he had a meeting with business leaders as well from today. it has been a busy day for president trump. >> it feels like his first real day. >> friday was more of a celebration. joe: volatility in the market, particularly around headlines related to tax rates. traders trying to digest what was set the tone early on. about half an hour ago, markets are red but overall still trying to figure out where things stand. scarlet: the media trying to
figure out where things stand as well. sean spicer held a more conventional news conference today after saturday. this is what you miss. let's look at where the major averages stand as we head towards the close. abigail doolittle is standing by. abigail: we are looking at modest declines for the major averages. doubt come s&p 500 and nasdaq all down just a bit. we have seen some volatility on the day is little bit. 500 earlier had been on pace for the worst days of the year but really pulling off the lows. the nasdaq is almost unchanged. the first of intraday volatility. also showing quite well by transport down my list and 1%. earlier down by about 1.4% come on pace for the worst base in september. some uncertainty about what the new administration means. one of the members of the chart team came up with this chart.
this shows some of the intraday volatility. basically the bars and yellow shall the total range on a day. the entire intraday range. in blue it shows the close. recently there is more yellow than blue. there are exceptions but it talks to the fact that there is a volatility on the day. tends to turn into closing volatility. these bars up are both down and up. they point to the full range on the day whether a decline or a gain. the bit of volatility that we are starting to see within that 1% range. have in 70 days since we seen a 1% decline. down0 year yield about seven basis points as investors are seeking haven bonds. bonds are rallying amid the uncertainty. the bloomberg dollar index is down about .75%.
a little bit of a confirmation. gold up about 7% this year. telling us investors are seeking a little bit of safety there. you're looking at health care. trading mixed, earlier both were down after a federal judge basically block a deal between the companies saying it would be anti-competitive. we were told that is not terribly surprising but it probably suggests a deal is unlikely to go through. we see both humanity and cigna higher this point. both of these companies have programs they try to offer at a low cost which makes the stocks this -- is still attractive. joe: -- careet: the u.s. security
and he was a precondition for integration. what does that mean under a trump administration? our next guest is a senior fellow who joins us from washington. talk to us about how there is this history of european integration being reliant on a u.s. security guaranteed. now you have president trump talking about the possibility of not honoring the needle agreement, what that means for economic interdependence. in theight, going back history of european integration right to the beginning in the 1950's, this entire process happened within the context in which security guaranteed from the u.s. existed. in many ways it was a precondition to european integration to take place. the u.s. pacified europe. it is hard to see how that process would have happened without the u.s. security guarantee. i think the question now is that given that the european usual --
union has not moved to a full european union, in other words it is not become a superstate that some people thought it might become, and that has not become independent of the u.s. insecurity terms, it still depends on the u.s. for security isi think the question now now that there is this radical uncertainty about whether the u.s. is still competed -- committed to nato and its european allies, what might start to happen is the process of european integration might go into reverse. this happens in a background is -- in which europe has been struggling already. already todifficult see how europeans moved further ahead with integration and on top of that now you have trump, which adds uncertainty. joe: i just wanted to get to that promote -- that point.
in theory we are further along in the integration project than perhaps the u.s. could pull back a bit. but how critical is it that not only are they not fully there yet, but they are already showing signs of fraying? hans: this is the moment when you needed to have a very united europe, and one which had in particular, a much more advanced security defense policy that would enable it to become independent of the united states. you do not have that. is thiswhat you have increasing animosity between eu member states that has developed over the last seven years since the euro crisis began. and the unwillingness to move ahead with further integration, including in germany, which is the most crucial member states. hows very difficult to see
europeans now pull together in the way that the kind of need to. in fact, the danger is that the reverse might happen. there has already been in the last couple of years a lot of discussion around this integration -- disintegration. the fear now is that trump accelerates those forces. scarlet: you mentioned there might be military power coming back in as a factor in relations between the different eu member states. what does this mean for a country like the u.k., which is trying to extricate itself from the european project? hans: brexit is the other part of this. it is the first major step in disintegration which is taking place. that is particularly problematic, not just because written is one of the biggest and most important eu member states but also because the terms of military capabilities it is one of the two most
important eu member states. those are precisely the kind of capabilities that europe may now need if it can no longer rely on the u.s.. the whole question of britain's role, it is an added complication that further -- the eu.e you joe: there has been a lot of criticism over germany's unwillingness to step up and do more. whether push ahead with fiscal transfers, criticism that it does not spend more on military. of those criticisms unfounded? -- are those criticisms unfounded? could germany show more leadership? hans: a cannot do it unilaterally. what you need is a grand bargain between different eu member states, in particular between
france and germany. that has really been the core of the difficulty of the last seven years. france and germany have been in very different places as far as what kind of steps are needed to solve the euro crisis. gap stills on, that exists. abley now be that they are to reach that kind of grand bargain but i'm skeptical. on the other hand you have, as you mentioned, the fact that germany under spends on defense. it spends 1.2% gdp on defense. nato recommends to spend 2%. defense spending has been gradually increasing in germany but nowhere near quickly enough. have this radical uncertainty about the u.s. security guarantee. chancellorthat, angela merkel does not seem
willing to dramatically increase defense spending in response to trump. you have the situation of real uncertainty about european security and the future of the eu. hans, thank you very much for coming on. scarlet: coming up we will have your deals report and talk about what from a suitable look like under the truck administration. this is bloomberg. ♪
on m&a. we do not know a lot yet as to what he is actually going to propose and what is actually going to get through congress. what we do know is he has appointed a very pro-business cabinet that portends good things. he has already through executive --ion put on hold regulatory further regulations. regulationcally a czar and has talked about cutting back regulations that impede his us. we're going to get corporate tax reform lead to a more efficient economy. all of those things will be very positive for the economy. and ultimately what drives deals is a strong economy. i think those are going to be things that are going to be very positive for deals. they do a positive deal
cycle and it will continue, at least with respect to domestic unite -- m&a. >> the republicans want to repatriate or allow big companies that have billions in offshore cash, bring the money back. you think that is positive? >> yes. not only for m&a but also reinvestment in the united states. there is probably over $2 trillion outside the united states that could be brought back. some will be kept overseas because companies needed for reinvestment over there. when the big chunk of that will come back, it will pay down debt, it will allow companies to reinvest. a big chunk of it will be used for m&a. >> on the flipside, what would concern m&a professionals like you?
what would concern them? >> i think the biggest concern clearly is around trade. because many u.s. companies export an enormous amount. also, a lot of m&a is cross-border. , willertain extent companies outside the united states be reluctant to acquire in the united states? will u.s. companies be interested or concerned that if they acquire a company in europe or asia or latin america that suddenly they will be bashed for that? cross-border m&a might be a little bit touchy, at least the first few months. >> you expect there will be a wait-and-see period? i suspect so. i have not heard definitively from clients on that but it is
something you have to be concerned about. since the election results came down in early november, the market has reacted well. the stock market is way up, 10% 20%. does that help m&a when the equity markets have pushed up stock values? >> it helps in the sense of, if you are going to use stock for the acquisition, it allows you buynother company -- another company with your currency. but if you're buying for cash and the target company has gone up, it is more difficult. some companies have gotten ahead of where their earnings are. up, anck market went expectation of having a stronger economy. we will have to see. i think how i valuations for companies somehow dampen
accusation activity. if we're going to have greater growth than the last few years, i think it will fuel m&a despite the stock prices. >> the biggest factor in m&a, at least from what we can see here on the journalistic side, is the regulatory scrutiny. just a few minutes ago the deal that was put together a couple years ago had been blocked by a judge. sense, doe lawyers they feel like this will be an easier administration when it comes to deals? >> i suspect so. in all probability that is what we're going to see. 2015 was the largest year on record for m&a transactions. 2016 was the largest year on record for busted deals. i think we are to see less regulatory intervention.
there is a place for the antitrust laws, there is a place for all regulators. but the this regulation and interfering with good, positive consolidation, there is no place for. i think we're going to see more rational behavior by the regulatory agencies going forward. joe: that was bloomberg executive editor of global deals. scarlet: it is time for the bloomberg business flash. the sec is investigating previously disclosed data breaches at yahoo! the compromised more than 1.5 billion users. whether the breaches should have been imported sooner. according to the wall street journal, -- got it was expected to release earnings after the bell today. california-based network testing is said to be attracting
interest. that is according to people with knowledge of the matter who say the sale could value the company at about $1.3 billion. shares gained more than 60% over the past year after a potential sale was reported. i heart media is said to have succeeded in its efforts to get investors to participate in a bond slot to reduce its $21 billion in debt. that is according to a person with knowledge on the matter who says some of the largest 2018 bondholders who had to take part finally caved after the biggest u.s. radio station owner won by granting them notes about the same value. the disturbance of the force at disney today can be described in a word. excitement. that is after the announcement of the title of the next installment in the star wars saga. it will be titled the last jedi.
wrote one was released just last month and has already passed $1 billion at the global box office. the last jedi be hitting theaters december 17. that is your business flash update. i love that name, the last jedi. joe: does this mean it will be the last one? probably not. scarlet: have you seen rogue one? my kids and my husband went to see it. have you seen any star wars? joe: i don't think so. scarlet: the original? appeared --een never seen them. scarlet: all right. i'm not try to embarrass you. this is what makes you amazing. next, etf is showing signs of trouble. have a chart to prove it. ♪
♪ scarlet: it is still a bull market for the s&p 500. u.s. equities rallied after the election, although we are still holding near record highs. this is the extent to which we have not seen any sustainable back. the red line is a 1% drop in the s&p 500. the s&p has not had a drop of more than 1% since october 11. that is the longest streak going back to 2006. it gives you a sense of just how limited the movement to the downside has been. the bottom panel, no surprise that the limited decline of that side is meant that the vix has held a near 2.5 year low. he does not show any kind of stress that you might anticipate given all the uncertainty. joe: it really is unbelievable. it is surprising enough that everybody got it wrong that the market has done this well since the election.
but the fact that is not been one day of any real selloff. given all the things that could have come up, that not a single day. lots of singles stocks, lots of sectors have done poorly. what is extraordinary how stable the headline numbers have become. back in 2008 -- easy to forget how wild that time was. i am looking at emerging markets. we have another chart. this is eem. , since theer here election it took a really big tumble. there was a strong dollar concern about global trade. it tumbled hard that it bounced back. it is been on a nice rally but there is a cross forming with the 50 day mike ross below the 200. something that the people might
want to keep an eye on. theoretically that could be good for em. as trump continues to hammer on trade stuff that could be bad. a lot to pay attention to with the em. let at the center of a lot of policy stories. scarlet: it has been at the cost for a few days. holding steady. -- cusp for a few days. joe: it has not gotten a much attention. you can see good or bad things there. love how they talk about being worried about china has come up again. i keep hearing it over and over. that is a looming threat on the horizon. the market closes next. take a look at the major indexes with less informative to go. the dow losing 22 points. the nasdaq little change. from new york, this is
closing bell. u.s. stocks falling with the dollar today. s&p 500 to a three-week low. joe: if you are tuning in live on twitter and want to welcome you to our closing bell coverage every weekday from 4:00 to 5:00 p.m. eastern. scarlet: we begin with our market minutes. a decline here for stocks. the closed lower on the second business day of donald trump's administration. the s&p losing six points, dow off by 25 and further away from that 20,000 level. they had been lower earlier in the day coming back later in the afternoon. look at theyou sector breakdown it is pretty even. 500, sixs in the s&p are down, five are higher. energy was off by 1.1%.
everyone is looking closely at oil but also accompanies like how the burden which reported the oil sources company returned to profitability but the numbers were not up to par. rose 9%.rican revenue investors were hoping for more. stocks down by more -- the most in nine months. keeping a close eye on aetna and humana. they now a $1 billion breakup fee. humana up 2.3%. on any kindwaiting of update on the other big deals. joe: let's look at government bonds starting with u.s. two-year and 10 year. both down fairly significantly. as scarlet noted, a big gainer in equities was real estate. it makes sense because he saw a nice bounce back in the treasury. not much data today but they seem to rally early on after some of trump's comments about
border adjustments. we look at intraday there was a lot of noise before the bell around 9:00 when trump commented about taxes. then we saw yields fall through much of the day before recovering here. scarlet: the dollar is weaker, the yen is gaining. the end rising against all major currencies. yen allen, aussie indicating a stronger yen. in mexican peso on its today chart -- it's two day chart. was the best today rally since before the election. the foreign minister is due to meet with donald trump deputies to discuss trade on wednesday. both countries president who meeting january 31. speaking of trading partners to our south, let's look to the north. dollar canada at session lows.
investors shrugging off president trump's threat the border tax. comments from canada's ambassador to the s liddy to confidence that canada would negotiate its own bilateral agreement with the u.s. that will not have a negative affect on their economy. joe: quick look at commodity starting with oil and gold. remaining above $52 a barrel. not much action. gold futures picking up a little bit less than 1%. part and parcel with the treasury rally. some safe havens getting a bit. cotton having a big day. when of the lead gainers. -- one of the lead gainers. scarlet: president donald trump met with business leaders this morning promising to impose a major border tax on companies that move jobs outside the u.s. company that wants to fire
all this people in the united states and build a factory someplace else and then thinks that product is just going to flow across the border into the united states, that will not happen. they're going to have a substantial border tax. joe: you can talk more about , manufacturing in the dollar is bloomberg director of economic research and chief economist mike mcdonough and stephen englander, global head of strategy at citigroup. can the administration designed a policy that specifically goes after would be outsourcers? it does not seem like it is about importers overall, it seems about companies based here currently that might be thinking of shipping jobs to china or mexico. >> i was just having this discussion with some other economists. we're scratching her head over this. we do not think so, but who knows? do not see how you can implement
a tariff that impacts a single company. or if you did it, you have to impact the entire product. which is a possibility. or is he just using rhetoric to bully his way to get what he wants? joe: how you interpret what he said? what is he trying to pursue? >> he seems to be pursuing his own concept of justice rather than one of efficiency. if you hamper u.s. firms that produce a broad and re-export back into the u.s. but do not do anything to for countries that produce abroad and export to the u.s. you have not really gotten the jobs on the factory floor that you promise. you just shifted the source of imports from u.s. companies to foreign companies. i think he has an understanding of what wants but i do not think he has thought it through great detail. mean forwhat does that
traders and foreign investors who are expecting a stronger dollar because it what the ,ederal reserve is going to do and yet hearing from the president that we do not want a strong dollar? toi think that he is trying go uphill on that one. if we get the kind of stimulus that either is built into the house bill or built into his at employment,e it is going to be hard to argue that the dollar should be weaker no matter how much he says. that one the market is waiting to see is equity what they do here if they fumble through on the fiscal stimulus, and the first couple of years, not just incentives -- if they follow through that the color -- the dollar will go up significantly. given that we are at or close to full employment. joe: if there were a coherent
plan -- you were skeptical that -- inxt -- tax plan -- does auld a plan coherent plan exist to revitalize american manufacturing? >> not yet. factwe're missing is the that manufacturing is no longer somebody sitting in a line putting something into something in a simple task. it is now very sophisticated. it requires a specific skill set. yet he of performing the tax rate, that could be a big boon to manufacturing. save jobs and make it sustainable and create a renaissance in u.s. manufacturing, you need to be thinking about how do we fill the skill jobs that manufacturing companies cannot fill right now? machinery,operating the people are programming machinery. these other things we should be focusing on.
one short-term fix for that is if you -- this is very controversial in terms of the views of the administration -- is allowing more foreign skilled labor into the country to fill those gaps. long-term you need to think about how do you incentivize people to study vocational skills. get behind the science, engineering and mathematics. if you start to do this than you could have a more sustainable recovery manufacturing and make a great again. of the: we talk some about saving manufacturing jobs, it seems like the goal is really or qualityh paying jobs that do not require higher education. isn't that what we are really saying? >> i think so. we have a about this ever since construction jobs disappeared eight or nine years ago. years aslast 30 or 40 manufacturing jobs have disappeared. one thing that will be a source of disappointment unless the protection levels are high, is that the wages paid in manufacturing, even informally
high-paying manufacturing sectors, are not that high anymore. butould get the jobs back it is certainly nothing to be in the ratio of some of the durable jobs, the jobs we found in the 1970's and 1980's. the wage premium will be much lower. joe: you mentioned that some of the stimulus programs go through that could be theoretically dollar bullish. in the meantime as you say, we hear comments from the president -- thatt necessarily did not necessarily sound like a coherent plan. stimulus is not the front of his mind. it is more about the specific stuff with outsourcers. how does a traitor position for this the radical stimulus -- this theoretical stimulus? >> i think that is why the euro is trading the way it is. the market is making -- is
beginning to lose patience and realizing it is going to be a longer haul than they thought. the other part is there are competing plants. there is the house plan which you may agree with or disagree with, but it holds together. the truck plan has not been very much elaborate. -- trump plan has not been very much elaborated. the dollar mike go up significantly but you cannot choose neither. the market is beginning to werther -- worry that there are going to be so many distractions that neither michael through. scarlet: you wrote that donald -- mrs.n mrs. target target but still win. >> sustained 4% growth is high by historical's to dan -- historical standards. 3%, you would be used to the kind of life improvements over the years we have become accustomed to as americans.
4% is probably aiming too high. 3% is probably more right. i think he is aiming too high but if he got to 3% it would still be good. can i elaborate on the dollar? you cannot have strong u.s. economic growth and not have a strong dollar. worry about the dollar being too strong is a bit misguided. the dollar could get to strong but we are not there yet. right after the great recession we saw a weak dollar. this helps drive the external sector. this is an important pillar of growth. now the important pillar of growth is the consumer. a strong dollar is beneficial to the consumer because it helps increase their buying power. write out with where the dollar is it is not too strong. if it went up significantly higher could be a concern but you're not going to follow through with strong growth without having a strong dollar. >> insofar as the market is reacting to comments like the and the dollarng
is high, the fear in the market is that instead of having a ,oherent plan, a fiscal plan you are going to have no physical plant but you are spending time poking at china or mexico and complaining that the dollar is high in their cheating. at the end of the day you do not end up with anything. specificallytalk about china as if there is not a third, fourth, or fifth lower cost producer out there that would take china's place, the more markets are worried that you are going to go out on a attention. joe: very interesting stuff. you will both be sticking with us to talk about europe. this is bloomberg. ♪
scarlet: bloomberg editor at large cory johnson joins us from san francisco with a more. actually, the yahoo! numbers just came out. perfect timing. fourth quarter adjusted earnings beating analyst experts -- estimates. revenue, $960 million higher than the anticipated $907.9 million. we look at the company's earnings, they do not move the stock price anymore because verizon is buying some of yahoos key assets. get anstion is, we update from the company on the data breach that has caused verizon to rethink how much it pays for those assets? >> we're going to get as little
as possible. bareknuckled to give us a press conference, a conference call for investors. whatever we get is all we are going to get this time around. as a signal that they are so close to -- they do not feel the need to update investors of the numbers are all we have. joe: with our 2016 results ahead of plan and the continued stability in our user engagement , the opportunity with verizon looks bright. talks about how integrations planning is the number one priority. --rlet: yahoo! news -- yahoo! sees the deal closing by the second quarter. cory: that has any plan all along. it is been more tentative than that. might beuser numbers good but revenue is 4% year-over-year. that is an improvement.
nonetheless, the belief that verizon can take this declining revenue set, stop that bleeding and then turn those margin numbers around and offer the services on a mobile basis actually raise the revenues somewhat, have a better ad platform with that, and actually make money. see the stock up 1.8% after hours. this is not about the results but about increased likelihood traders are betting that the deal will be closed. these results to suggest that there is not -- do suggest there is not further impediment to closing the deal. verizon really thinks they are getting a steel. when i look across all the potential assets of any internet fewany and there are very companies that reach over one
billion people a day, yahoo! is the cheapest way to acquire one billion daily users. the think that is what they are getting. is that facebook but is not twitter either. they see it as a steel. se it as ahoo! is -- steal. scarlet: searches and email engagement has mostly recovered. we know that verizon is buying a lot of assets but not the key assets of yahoo! japan and the alibaba stakes. do you have any sense of what happened to those? that separately traded entity will allow this to exist tax-free. is essentially a stub of the businesses. it continues to exist here in the thinkobably yousef as yahoo! shares
i want to start with how the percentage of treasuries held overseas has been coming down. --ald trump enters office let's pull of the chart. less demand, lower prices and investorsld for u.s. and americans overall. ,verseas investors at one point now at 43%. as we talk about donald trump beating on china as this potential trade war partner, a currency manipulator, do you see china cutting down further than it already has? >> quite possibly but if in china has been trying to do the diplomatic high road. bc ny has been depreciating -- the cny has been depreciating.
selling treasuries in order to defend cny. i do not think they are using the u.s. treasury holdings -- scarlet: as a retaliatory measure. >> that might come. so far they recognize he has not done anything. they want to see what happens. joe: does trump get a pass? in other words, that theoretically some of these faulomatic full pause -- poux -- do think that earns them some space? >> i think it earns them space for saying things but not much space for doing stuff. joe: let's talk about europe. in the last segment you talked
about the euro going above one dollar. the, receives be getting better but there is a lot of political tension. if we go into the bloomberg i'm looking at a chart of a french spread. the white line is french german spread. france,to the cost of the french yield is going higher relative to germany. the blue line is the spanish french spread signifying the gap between france and spain is narrowing. obviously there is anxiety about france out there. election will be going on for a while. everyone says there is no way he can win but nobody takes that seriously. how do you think about the crosscurrents with respect to the euro between the politics which do not look good and the economics, which seem like they're getting better? >> partly they reflect the same thing.
the eu has loosened budgetary restraints. , think there is an element let's improve the economic data. it is also causing political stress that we are seeing there. i think ultimately the political stress will dominate in any major eurozone country. you have a party voted in that is likely to leave. france,will be not just but that would quickly turned up that blue line along the french line and put stresses on the other peripheral countries. joe: would that be a global financial event? everyone got the ramifications butrump and brexit wrong, it seems like were a eurozone member to come in who wanted to leave would be a big deal. would that cause ripples? >> i think so.
but they are slowing it down a bit. not think to leave the day after. basically indicating she wants a different system. not quite being as aggressive in terms of the departure timetable. but it would be big. we have seen german yields getting very negative. i think we see the euro selloff. these peripherals spread. maybe we are all thinking about it the wrong way. maybe there is a white swan in france and that would get a center-right, a pro-growth kind of leader in france. no one is making about that because we have been sidelined by brexit and donald trump. he has been around a long time. he's not viewed as a
revolutionary in terms of economic policy or any policy. he is a steady pair of hands. there could be a white swan but i'm not sure it is simple and -- i'm not sure it is him. scarlet: coming up, the senate foreign relations committee about to vote on rex tillerson as secretary of state. we will give you that any status of president trump's other to cabinet picks. you can watch the proceedings in voting on the bloomberg. from new york, this is bloomberg. ♪ ♪
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only xfinity gives you more to stream to any screen. download the xfinity tv app today. ♪ to first world news. the trump administration says it is willing to partner with russia in the fight against the islamic state. speaking at a daily briefing, sean spicer said president trump has been very clear that he will work with any country committed to defeating terrorism. >> if there is a way that we can combat isis with any country, russia or anyone else and we have a shared national interest, we will take it. its work planes did a joint mission in syria against the islamic state with assistance from the u.s.-led coalition. the pentagon has not confirmed
that. president trump takes aim at a trade deal that he says would hurt american workers. he signed an executive order polling americans out of the tpp. the president placed a hiring freeze on some federal workers, and cut off funding for international groups that perform abortions. border donald trump's tactics, the mexican president said north american trade should remain free of all harris. the conference was attended by many leaders. they say mexico will present a united front as the nation begins talks of trade and immigration with the u.s. theresa may's legal challenges mode and tomorrow when the supreme court their rules on who has the power to trigger brexit. whether may or parliament has the authority. several court cases are pending. one claims that may does not u.k.the power to pull the
out of the single market. global news 24 hours a day, powered by 2600 journalists in 120 countries. this is bloomberg. the confirmation hearings for trump's cabinet picks are underway. committeen relation is voting on rex tillerson as we speak, and the vote on mike pompeo as cia director takes place tonight. joining us is bloomberg white house reporter kevin cirilli. today, sean spicer complained about the slow space of cabinet confirmations. what is the schedule? will they get more in soon? vin: the senate will vote to confirm mike pompeo, the selected toon trump lead the cia. as we speak, senators are
gathering on the senate foreign relations committee to move the nomination of wrecks tillerson -- rex tillerson. democratslicans, who hoped would oppose tillerson because of his business ties with russia, have decided to support him after all, most notably senator lindsey graham and senator marco rubio, two republicans from south carolina and florida respectively, arguing at the end of the day concernse they have about tillerson, they ultimately feel like they can support his nomination. scarlet: you are seeing a live shot on the senate floor there senate foreign relations committee finishes their discussion and gets ready to vote. , marco rubio supporting rex tillerson some a nation but he does so with reservations. you look at people like senator john mccain, and senator rubio, they are
positioning themselves with people like senator lindsey graham to be the republican opposition within the republican party, to help serve as a check for president trump. so as that continues to evolve, i would look again for that type of leverage to continue, because at the end of the day, while republicans have a majority in congress, they don't have a supermajority and president trump needs key republicans, all of his party, to move several of these nominations. he was able to get the support for tillerson, but it remains to be seen on other key legislative agenda items, particularly on foreign policy, whether or not that support will hold. mccain, lindsey graham and marco rubio are sending a message that while they are with him on tillerson, they may not be with him 100% of the way on other key issues. joe: the pompeo vote, some democrats, including ron wyden
of oregon, were not eager to speed the process through, much to the chagrin of the white house. what were their concerns and have those been addressed? democrats have criticized the administration and the nominees for not complying with senate ethics standards as well as some senate finance regulations, and finance transparency issues with financial disclosures. on the flipside, republicans are arguing democrats are simply playing politics and using any mechanism they can to slow down the process. at the end of the day, the bottom line is that it's looking more difficult for democrats to block any of trumps nominees. are there any of the nominees that the democrats are supporting, that they signed off on? kevin: actually, at one of the hearings that we will see over
the next couple days with dr. ben carson, i think he might at supportport -- get some from democrats on the senate banking committee. there was a moment where senator moderatetkamp, a democrat from north dakota, when she actually praised dr. ben carson and said that after meeting with him, she thinks that he might be the right theon after all to lead housing and urban development office. it will be interesting to see where that goes. dr. carson's nomination, one of the least controversial. joe: after tillerson and pompeo, who looks like the next in the door? are stevenbig ones mnuchin, the former goldman sachs executive who democrats are trying to criticize as out of touch with the middle class. i have spoken with sources who uchin for themn
hearing, and they are confident he would be able to get the job done. i would anticipate that nomination heading to the senate floor within the next week. because great timing, there are headlines here in which steven mnuchin is entering -- answering questions, saying the u.s. needs a comprehensive financing approach and they have tools to address on their trade -- unfair trade. he goes off to talk about other things, the u.s. imf funds buzz be used in line with policy goals. he would enforce sanctions against iran and -- joe: the dollar is flipping on this news. drop on somet of a of these. zoomed doomed in, --
in, but a takedown on these headlines. steven mnuchin's confirmation is all done, right? matter of him answering outstanding questions in which he will issue them in written form, then the banking committee will vote within the committee to move his nomination, looking at the numbers on that committee. he is poised and in a strong position to get that, clear that procedural hurdle, and after the moveng committee votes to the nomination, it will head to the senate floor. building off of his nomination, it really looks like he was able keeprner the support and the support of republicans that he needed to in order to clear that first procedural hurdle. joe: kevin cirilli, thank you very much. you can watch the senate committee vote on the bloomberg at live go. scarlet: the slow death of the
♪ joe: -- inrlet: the twists and turns the johnson & johnson takeover soccer, and recent u.s. political developments have put the health care industry and focus. i had of the earnings, let's take a look at the company. johnson & johnson is set to tentatively agree on a price to acquire a biotech company. a potential takeover of a tally on would allow -- the biotech company would allow cash flow
for fiscal 2016. johnson & johnson's drug unit is one of the strongest among its peers. the white light as pharmaceuticals, which leads revenue growth. drove -- new drugs drove growth. pharmaceuticals are the largest business unit, making up 47% of sales. that is the orange pie. the medical devices division is being restructured. one third.ted momentum is building in the company's consumer health and devices unit. that is the blue splice. they would add a leading franchise to the drug business and cushion sales erosion by a drug that faces cheaper competition. accounts for 1/10 of pharmaceutical revenue for johnson & johnson in the third order. the stock has climbed over the past year, but investors need to
pay attention to president trump, what he says, what he tweets now that he occupies the white house. promised to drive down the cost of medicines. investors believed his election would be a blessing for three -- free market health care. we will follow johnson & johnson's earnings. from earnings to retail. the slow death of the american shopping mall is not evenly distributed. recent big-name store closure announcements are happening all over the u.s., but a disproportionate amount are happening in communities that are already struggling, creating what our next guest calls a retail rust belt. columnist fora bloomberg view. connor, we talk about the death of the mall and the kinds of retailers that specifically hurts, but some malls are driving. where are they and what characterizes them? connor: physical retail in
general is a phenomenon moving from the middle-class suburban negativity to an ops gale urban activity. -- upscale urban activity. thriving that are urban town centers with amenities, restaurants, activities like that, and the traditional mall with big box stores. >> when a mall closes, it is peopleke -- it is less shopping online. a sense of community is lost. you said the loss of bigs -- big-box stores and malls means a loss of communal and social space. behind a hugee footprint and represent a tax revenue blow to a community taxeen lost money and dollars. it is more than a place for people to go wander around. connor: if you decide to buy or groceries on an online service or amazon, your economic activity can move seamlessly,
but the issue is that when a mall those dark, it is not like turning off the website. you have a massive physical structure left behind. the structure has parking lot and sewage connections and asphalt that needs to be maintained. what does the community do with that? examples were any communities have figured out how to repurpose these decayed malls ? or do they become burdens on the infrastructure without any real hope for turnaround? anyr: there's not one-size-fits-all solution. it depends on the community. you could have helped clinics, co-working spaces, but what can the community support? scarlet: how are some communities addressing this? is there an instance where they have done something that slowed the dissent, or is it inevitable that they go the way to do? conor: there are two paths that a mall can take.
one is, fill in the gaps. take a sears and put in an asian market. that can slow the bleeding or maintain it at a different level for a while. then, there is the whole teardown down and redo the whole office spaces and hotels and rebuild it completely. we haven't seen a lot of that, but we are seeing signs that is vacancy rates decreased and millennials move, the activity could be more viable than in the past. piece, youifferent talked about how more professional couples might decide that having both parents working in an expensive urban center is not good economics and they, if possible, might do better by having one parent working but moving to a cheaper location. maybe one parent telecommute's. if that were to become a big trend, what parts of the country do you think would benefit from that emerging structure? conor: places people want to be.
city like chicago. why do chicago exist? because we needed a place right there for factories to get their goods to market by water. that anymore. people can go places with good weather, and your amenities they like. if you can find those places at an affordable price, those are places you should be looking at. joe: this sounds similar to the problem of malls. if you start to have too much depletion of the population stock or too much change from physical to online retail, it doesn't change the fact that there is all this infrastructure that was made for a more thriving time and someone will have to pay for upkeep. cities struggle with this. costs.infrastructure has maybe something is viable when one million people are using it, but when you drop to 900,000, the economics don't work read
you can see that with newspaper deliveries and malls. joe: thank you very much. conor: thanks for having me. scarlet: an update on steven replying to the senate in a document, saying an excessively strong u.s. dollar may be negative in the short-term, echoing what president trump has said before. we saw a reaction in the dollar, the dollar index took a likely lower. it is not excessively lower, but a noticeable reaction. steven mnuchin also said we hope for sustained economic growth exceeding 3%. he would also enforce existing sanctions against iran and russia. the answers run the gamut. they are responding to question senators have posed to steven mnuchin halloween the one day of confirmation -- following the one day of confirmation hearings. joe: we have a live shot of the foreign relations committee, we
staff member. 27.s a -- i was i wanted to make a change, and i was sick of complaining about it. and not making a contribution. when i graduated university, i applied with a post with the parliamentary division. before i knew it, i was coming together with three of my fellow staff members to run for office, and three years after that, having served as a party national spokesperson, i was running for leader of the opposition. i did these things because i would feel a sense of disillusionment and unease with the status quo and a desire to change it. after thinking about it, i would realize that the solution lies with me. that is what took me through the path to becoming a staff member, then a backbench politician, and finally leader of the opposition. >> your story is incredible. especially how you felt that
sense, the need to be able to change or disrupt the status quo. what was that like as a woman in politics in south africa? >> it is strange. i never anticipated how front and center my gender would be. that was naive of me, because one of the reasons i ran for office and ran for leader of the opposition was because of the shortage of women in senior leadership. i thought we needed to change that, and change the direction in which the party was speaking to voters. i thought it would be an issue. i didn't think it would be front and center. which ihe lens through was analyzed, through which my leadership was analyzed. my opponentsol would use to insult me in parliament, insult my hair and my clothes. my age would be folded into that, my race into that. my identity was a huge part of
my political career in a way that i never anticipated. there were difficult days, but for the most part, i realized that i was doing something different, we were doing something different. resistance, and that is what is going on. we had to keep pushing and pushing until we broke the mold, and help people understand that we needed diversity of leaders in south african public life. >> what was it like, leading the opposition party with a president, the first moment where you came out with your voice in such an impactful way? what did people say about you? >> i suspect that people expected me to be perhaps more docile than i turned out to be. my team and i realized from early on that we would have to above our, very high
weight in order to convince south africans that there was nothing unusual about a young woman challenging a president in his 70's on policy, on delivery, on governance and the constitution. that is the role of the leader of the opposition in the house, that's your job. if you campaign for the role, you have to do the work. my first interaction with the president directly would have been question time, or during a state of the nation debate. i think it was unexpected for a lot of people that i would, having secured the position and having been elected to the post, go out and do my job as forcefully as i decided to. it took a long time for people to adjust to the notion that a woman in her 30's could challenge a man in his 70's on a public stage in south africa. >> i would bet on you any day. >> they adjusted and it has
become the norm. young people stand up and challenge the president in the house every day now. there are mostly men, but there is a shortage of young women in politics. increasingly, women are finding their space. women in my political party why use to work with, who i had mentored and known when they were like me in the early days intheir careers, are now parliament, in the legislatures, challenging for power. i wish there were more of them, but i'm proud of the young women i have seen move through politics and make an impact. joe: breaking news -- haslet: donald trump nominated a republican who is against the mentality. that is all you need to know right now. when we come back, the trading day. this is bloomberg. ♪
business leaders he named to an advisory panel. the president said the administration believes it can cut regulations by 75%. he also met with labor leaders and workers. florida senator marco rubio says he will vote for president trump's secretary of state nominee, rex tillerson. marco rubio joined lindsey graham john mccain in saying they will support tillerson this fight ongoing concerns about the former exxon mobil ceo's past dealings with the russian government and president vladimir putin. benjamin netanyahu has accepted president trump's invitation to visit the white house next month. netanyahu announced plans for the visit after delaying a vote on a controversial proposal to annex one of the west bank's largest settlements. george h.w. bush is being moved from intensive care in houston to a regular floor. the presiden