tv Bloomberg Markets Americas Bloomberg January 30, 2017 10:00am-11:01am EST
♪ vonnie: breaking economic data, pending home sales are coming out for december home sales, giving us to headwinds, mortgage rates and hike inventory. we have the fed meeting this week. julie: these numbers coming in better than estimated. a rebound from november. that a 6/10 of a percent better than estimated. still a decline of 2%. rates begin to rise and as investors try to either get in their mortgage application before holding off for the moment. overall we are seeing a pressure investorsand various
who try to figure out what the new trump era regulations mean. in particular this new travel rule. if you look at the big tech , who ceos have been outspoken against that travel ban, many of those shares are trading lower. technology is a big weight on the overall averages. looking at the contractors who do business in iraq. in response to the u.s. saying there will be a 120 day delay in allowed to come into the united states, iraq has made a similar proclamation. we also see oil decline in
prices. energy is the worst performer in the s&p 500. it expects the eventual collapse of the opec cannot opec production deal. even if it could get as high a 65. >> immigration is reverberating around the world. industry groups. all nine are trading lower today. -- all 19 are trading lower today. and five. week just a highlight of a move we have seen. german boones reflecting the move. yields falling in germany. healed swear rising earlier.
this is a spread between the german 10 year and the italian 10 year. it is widening by 11 basis points. as you can see this is 2014 through 2017. the spread between germany and -- we had some key inflation data. busy day today for corporate news. the plan presented in december shoring up its finances. they are still up, not as much as they were up .6%. as much as 4% earlier.
mergesth a group that the indian unit with cellular, the third-biggest mobile carrier. all rising amid speculation of a possible merger. bloomberg news earlier reporting , whichriers in india controls india's richest man in to services under binding -- undermining industry revenue. on the president trump immigration breakdown. -- immigration crackdown. we got word president trump will announce another executive action, this one on regulation. he has said during campaign he would revoke two regulations for
everyone and acted. he tweeted this -- a lot of reaction to this executive order. let's get to bloomberg's chief washington correspondent on capitol hill. things have called down a little bit. what are congress people saying? republicans have been tepid in their support for a republican dish support for -- support for president trump.
clearly the executive order coming from president trump has sent a jolt here in washington dc. >> do you anticipate more reaction? morew we are getting executive orders, at least one in the next hour. will there be any more response from the administration or white house or steve bannon or anybody? >> regarding one particular executive order to tend to regulations and president trump revoking a former rule that there would have to be too new regulations for everyone revoked. essentially that he called a game over between his fight -- over in his fight between lockheed martin.
that is good news if you are lockheed martin and boeing. these two large defense contractors are on the way. >> donald trump trying to shift the agenda. what else can you tell us with regard to the white house's response? they are blaming delta, blaming protesters. >> they are also blaming the media. when you take a broader step it is a strategy come in from the white house on the executive order. i would very much note before these executive orders were publiced, it was made that steve bannon was elevated with the admin in -- elevated in
the administration. on senior intelligence officials that suggests steve bannon's role in the trump administration is growing and he has great influence within this white house. i would also suggest they are anticipating mr. trump will unveil an announcement to the nomination of supreme court. it it nights debate here in washington. you take a look at the first 10 days of president trump's time in office. he is doing everything he said he would do when he campaigned. >> thank you for that. for more on the reaction to trump's immigration executive order, let's go to the capital of ethiopia.
that is where jeffrey from columbia university is attending the african union summit. professor, thanks for joining us. dr. is about the reaction of very as african leaders. we know one country in attendance, sudan, is on that list. guest: there are diplomats from all over the world. there is real disdain. i don't know whether they were shocked or not. it is very disturbing all over the world. i think the reactions in the airports, the reaction in the i.t. sector, reaction among families is among diplomats. >> we have reaction from
sudan. if we could bring that up. the decision was taken at a time -- those obviously the sedan foreign minister. you have talked about the economic arguments of refugees and accepting immigrants. there is plenty of distribution effects. can you talk us through reasons why people may feel justified that this executive order was made? >> this undermines general confidence. i don't think this has a positive economic side. companies are complaining bitterly in the context.
this hurts them in the open flow of expertise. if you look at the reactions in , there areeurope mainstream politicians. it is an eu alliance which is an alliance from decades. i think this is not good news. >> how can europe push back and a way that doesn't undermine these alliances that have been in place for decades on the economy and on security? how can europe ensure that the thesenterests -- alliances aren't afraid by
executive actions from the white house. >> you hear statements by mainstream western european politicians that the united states is going to go protectionist. the idea that the u.s. can buy twitter and by executive order manage things is just taking people, they are aghast. this is not serious. people depend on billions or trillions of dollars of management and study rules on predictability, on trust. and a lot of that is undermined very quickly right now. is all the thundering against china and mexico. it is america first, america
first, america first. meaner --general general demeanor of what happened in the last couple of days. >> the pushback could be felt in not only anti-american sentiment, but it could be felt in the fight against terrorism. ironically the measures were put into place to stem terrorism. >> i think anyone who thinks this through a little bit knows that a blunderbuss puts a complete bar on immigration. whether it was friends, translator for american forces. is -- whether it is people fleeing persecution.
this is so unthinking it is causing people profound dismay. it is not about the things that we are talking about. and in anti-islam sentiment, appealing to some part of america that is not the mainstream of america. that is the general feeling. >> i want to question you about the specific countries, why these were chosen. there is a lot of speculation out there in the background, but there is a lot of history in aggression with these countries and there are other reasons. these are countries chosen under previous leadership.
>> they didn't ask me. i can assure you the list is arbitrary. some people say it is where trump doesn't do business. the whole idea of this kind of list is absurd. we should have look at it as a serious thing. that you say that nobody from this country is .oing to be admitted whether it was seven or eight, it is about the crudeness of the approach. it broke long-term agreements. shock in thea crudity of the behavior. >> the palestinian -- is because
he is chairman of the house national resources committee. you are going to have a busy week. when you first heard about the executive order, lumia -- let me ask you when you first heard about the executive order. there is nothing that went out guest: thisrder? goes back to a bigger issue and a bigger problem that we have. said he last president was going to bypass congress, it kind of opened up the process where you have competing executive orders. i think one of the things we need to learn from this is if we are going to have continuity of government, it is to make sure executive orders are minimized. a lot of orders came in, a lot of rules we are talking about this week.
that is not the way you function with government. i think to bring some balance back here you are going to have a better process altogether. this toyou communicated the white house where the administration? have you had the opportunity? >> not directly. but i had the opportunity talking with members in the incoming administration, especially in my area. the realized if we work together on this and did something arbitrarily with bypassing congress we will have a better product. think we have to realize executive orders have to run their course. we have to deal with is mickey sure congress puts in the policy of which we have the responsibility of doing. if you do that you have better continuity of government. we are getting another
executive order in 10 minutes or so. we know it is regulations. >> if there is an executive order that removes some of the prior executive orders so we can work with the ministration going forward, those will be beneficial. i don't care which administration it is, you're changing the way the government is supposed to operate. the government has a decent approach to working forward. there would not be wide swings in policy. that is what i am hoping happens. >> do you imagine it would go smoothly? guest: i certainly hope so. government better in place and functioning the better off we will be.
>> there will be certain rules and regulations put in place that you want to reverse, including a screen for -- including a stream protection rule. them again -- guest: what again this is a rule, four hundred different elements to that regulation. even though the losses you have to correlate with the states, the states were ignored. the so-called science that was was was ok -- was ok -- opaque. if you're just making things by executive fiat you have a tendency of getting it wrong. with congress we can come up with a better approach. rule that went off course and is causing more harm
than good. vonnie: you are also going to be speaking about a rule that requires gas and production companies to reduce waste. it sounds like you're not too worried about gas in certain parts of the country and you want more federal land to be used for drilling. guest: let's mention the role you mentioned in the first place preview can put in pipe plans or send it off where can be useful and beneficial. you don't have the pipelines in place where you don't have to burn it or recently don't have to drill in the first place. i think there are people who wanted that third option. if you don't have that option is
the essential for this administration is the authorization of those rights of you i isthe five life vonnie: we're going to have to cut you off. trump: that's what this is about today. to be the biggest the country has ever seen. there will be regulations, there will be controlled, but it will be a normalized control. that is what our country has been all about. should i sign at? -- sign it?
that's great, that's a big one. do you have anything to say in efense? i'll become famous back in syracuse? >> thank you for doing this because small business has tape,n an idle way, red to break that will change the world for us. thank you. [applause] president trump: thank you all very much. >> any comment on the protests? vonnie: you saw the president signing an executive directive on regulations. he said that is what it is going to be, and he has signed that
directive. we will bring you more details as we get them. julie hyman has the latest. looking at the fallout from the executive order he signed last week, which restricted travel and severalion from countries. the airlines suffering from that but suffering from the outage, the computer outage. flights are canceled. airlines are trading lower. >> thank you for that. more markets next and more information on that executive directive on immigration with bloomberg.
new york -- more from new york. emma: a day after protesters jammed several airports, the president said just one hundred nine international travelers out of 325,000 were detained. they said president trump made reference to his new policy of meeting business leaders. president trump: we had a good day in terms of homeland security. we had decided to make the move. putor federal judges have part of the immigration plan on hold. according to abc news, the president has narrowed his shortlist to two federal appeal court judges. there has been an opening on the court since last february when antonin scalia a died. in quebec police say they don't know the motive for a deadly
attack on a mosque. six people killed and eight wounded. canada's prime minister calls it a terrorist attack. he was once one of the richest people in brazil. now the former billionaire has been arrested in rio dean -- in rio de janeiro. batista is a target in the long-running investigation. they had flown to new york less than 36 hours before. global news 24 hours per day powered by 2600 journalists and analysts in more than 120 countries. this is bloomberg. as president trump shifts his talks to immigration policy, how patient will the will the ban? and on people traveling from seven
predominantly muslim countries, and where investors are potentially looking to put their money, will that affect them? the cohead of fixed income, where he invests in him are in market countries. some have been hard hit by turmoil and geopolitical risk. thank you for joining us. how has your world changed since own -- since november 9? obviously with the new administration, which is moving full throttle, we have to interpret what is coming and changing pretty quickly. the world is not changing that much. our focus is economic and political analysis of countries. >> president trump tweet something about a particular country or a particular company. you can't ignore these tweets, can you? >> i actually followed them now.
they are a little overwhelming. some of it is a policy like mexico. we follow it just the same. focused --to say stay focused. >> commodity producers on the other side, you have the protectionist dance which could be harmful to others. given those two opposing strands, how are you speeding up the end space? are splitting up countries that can be heavily impacted. others are more insulated and have a domestic economy more insulated from what is going on. the market is struggling with these two issues. we are pricing on the
protectionist in general. >> explain more about that thinking. investors complacent? >> money is still coming into the sector. that is behind emf asset classes. , hire american. doesn't seem like people are focused on those two simple which can be damaging for some countries in asia and other places like mexico. other parts are more insulated. we have less concerns about it. >> another agency didn't downgrade the outlook. russia as well as another country we are very interested
in, we have the cbs central-bank to try to shore it up. your trust in places as unpredictable as iraq and russia? >> we don't trust anything. that is the first rule of investing. with respect to turkey, the downgrade and things like that. this has been telegraphed. there are some assets in turkey, especially on the credit side, and one of the few markets that haven't seen much in the way of sovereign credit spread tightening. with russia this is a country that has been long trump. it has been a trump trade and an oil trade. we see a change in monetary policy where they are going to be accumulating more. we think the excitement and a
lot -- excitement and the russian trade. on the bounds of things it is still an interesting market. >> where are you shifting your money? are you currency hedging? like currency risk in places where we think economic growth is going to be strong. we are not necessarily hedging. we think it is overvalued or is going to weaken. one of the places we like right now is serbia. it is a country well off of the main reservation where investors are looking. we think it is largely insulated from trump. we think there are strong gains in the upper double digits. >> the fixed income cohead. we will keep our eye on servia's
>> support from president trump on the keystone pipeline, there are still potential hurdles. >> warren buffett speaks out against trump's executive order on immigration. of the announcement, buffett told columbian university about the critical role of immigration in the united states. >> this country was built by immigrants. they found something that unleashed the potential. it was the product of it. is a sixic confidence year high. that is according to the european commission. ghosts -- stronger growth and inflation. the country's third-largest
carrier. -- indian carriers are seeking to consolidate the mobile come -- mobile economy. sony isn't saying hooray for hollywood. taking -- is a number of sony's recent films have underperformed at the box office. entertainment chief michael linden is stepping down. for the bloomberg quick take. they are plenty -- their plentiful. while the fuel produces more greenhouse gas than conventional forms of crude, and that is what canada wants to send to its
proposed keystone xl pipeline. now they may get a new lease on life. donald the situation, trump took action to move the pipeline forward, but he wants to renegotiate a deal with canada to ensure that pipes are built in the united states. says he prime minister favors construction of new pipelines, including the keystone xl. but he has also taken steps to on the climate issue. president barack obama rejected ae keystone xl after seven-year debate. president obama said at the time the project wouldn't lower gas prices, nor would it enhance the nation's security. he also said it would undercut u.s. leadership on climate change. institute,o the --
and 8% to 30% more carbon than conventionally produced fuel. it takes more energy to extract then refine. the industry says increase is more like 6%. environmental group says the keystone xl will have dependency on oil for decades. pro forces are still being produced potentially by rails, which increase the risk of accidental spills. president trump since his keystone decision was much more simple for oil companies. for everyone else that wants to do business in the united states. you can read more about keystone and xl in the bloomberg business report. >> let's go to politics in france. a run-up of the socialist primary. about 58% of the votes.
>> there are many reasons to be worried and the world around us is more unstable than ever. pressure vladimir putin is exerting on europe and in the far east and middle east, and islamic terrorist threat. tackledy can see if we all this with fear, we will end up with candidates of fear. >> francois fillon held a scandal on sunday. he entered the french presidential race. consequences of victory in the socialist party primary? challenge is trying to unite the left wing. you already had the far left
candidate. and a very hard line on the left. a creation of universal meaning of wage for every french citizen. well forot going very the more moderate part of the socialist party. some who could actually leave the ship to rally the central candidates. earlier with a spokeswoman of the socialist party who told me she was not too worried because she doesn't and heprogram yet clearly lakhs party support. >> i think this is going to be a crucial issue. he have a realt form right now, nobody knows what his ideas are.
on top of that we have no idea who he will govern with. this is an issue during the campaign. this is something people will have to think about before they vote. he needs the majority to govern. >> the latest poll we had last boosting, the is chances of him -- the republican candidate. and this latest poll, still the front-runner from the presidential election. and at 21%. it has never been so narrow.
>> he certainly went on the attack this weekend against the challenger. >> he did a whole big rally on sunday. his message was please leave my wife out of this campaign. he is facing preliminary investigation. now francois fillon and his wife are being heard by the prosecutors. whether she actually did some work as fillon's assistant. in the national front leader is trying to take advantage of this.
the real issue right now is the relationship with money. >> vonnie. >> former treasury secretary larry summers gives his perspective on how president donald trump will impact markets going forward. here is a look at u.s. stocks about an hour into this monday session. yes if 1% as well. the vix is above 12.5.
against president trump's immigration ban. tweet, bloomberg data break -- bloomberg daybreak: americas spoke with a professor at harvard university. >> each mark of participant will have to make their own judgment. i am a bit fearful what we are seeing in markets is a sugar high. got doesn't mean they can't higher, that doesn't mean it can't happen for quite a while. i am the last person to be of the claim to time markets. there ises seem to me a kind of euphoria that assumes tax policy is going to pass fast. i suspect that is going to be very difficult. the confidence is going to
remain strong. i'm not sure about radical actions like the one we saw. to the worldons aren't going to be responded to. i'm not sure that is a good bet either. i am nervous it is a kind of sugar high market. that is not a judgment that can be a basis for near-term investing. what is a clear error is confusing several months of markets with strong fundamentals. when markets did best in the 20th century was a period between herbert hoover's election and inauguration. presidency, that was the
biggest economic disaster we had. nobody should be serene because markets are behaving well. >> do use -- do you think prices setting the narrative? different people are responding to different narratives. for many what is setting the narrative is frankly fear about what their country might become. new administrations always have growing pains. we are going to know a lot more a week from now when we see whether the administration recognizes that this was chaotic, costly, and counterproductive, or whether
they decide to double down on this kind of thing and continue to make policy in this way. i think we will know more a week from now. that will either because for reassurance or greater alarm. the mistaked make of making a definitive judgment on the basis of what happens when week in. at the same time no one should make the mistake of taking seriously what happened over the last week. if you strip out the administration for a second, some of the fundamentals are good. five year break czar over 2%. how do you factor that in if you're looking at the markets?
versus the day today headlines that can cost uncertainty in the markets. >> that is something every investors going to have to make a judgment. i am suppressed by hollow how low that fixed measure of volatility is. whether you are optimistic or pessimistic about the new administration, you have to look at the last several weeks and think surprises are usual going forward. in a period were surprises are more likely than usual, it wouldn't have been what i expected that measures of volatility would be as low as they have been. markets have not been volatile in the last month and that's probably what is shaping the vix. some pointeling at more normal volatility will take hold again.
vonnie: former treasury secretary larry summers. mark: let's check out what is happening in u.s. markets. away from thetes end of the monday session. big declines from the dow and s&p since october, all falling 1%. president trump halting immigration. let's leave you with european stocks, biggest decline for the stocks has hundred -- for the stoxx 600. decline for the ftse. this is bloomberg.
close on bloomberg markets. ♪ mark: we are going to take you from new york to london, covering stories out of for lynn and washington. here are the top stories we are following on the bloomberg and from around the world. in politics, president to president. donald trump defends his immigration crackdown as backlash spreads around the globe. we will find out how european companies are responding. >> it is a huge week for central banks. will the banks rise or stay the course? and the next step on brexit as the u.k. parliament gets set to vote on article 50. the chairman of parliament so lacked -- part of an select committee.