tv Bloomberg Markets Americas Bloomberg May 31, 2017 2:00pm-3:31pm EDT
a quick look at the markets as -- the into th that nasdaq lower by 310 to 1%. /10 of 1%. >> modest or moderate growth in the 12 federal reserve districts. that's the latest from the fed report released just now. chicago saw slowing of economic activity in new york the reported flat economic activity. consumer spending weakness was the week showing in many districts. lower car sales and problems across the retail industry. this is at odds with what we have seen another government data showing the consumer rebounded in april after a weaker start to the year. that bears watching. the most interesting narrative for me was the tight labor market impacting wage growth, or how it is not. businesses reporting difficulty
finding workers. in minneapolis they sold out of employer booths for a second year with a waiting list. in cleveland a truck driver firm boosted wages by almost 8% just to retain workers. other businesses are finding more create ways to retain workers, and tracking their benefits for retraining opportunities and automation two aboard getting pay increases. we will have to watch this, including the jobs report from the labor department is see how type it's impacting wages. and housing we see low inventory driving up prices consistent with other reports. overall we see a generally positive town in the near term for businesses. some optimism waning in many districts. michelle, moderate growth. let's check in with julie for any kind of market reaction. we were looking at two tens of a percent before the release of
the beige book. julie: counter people are still reading through. the beige book is not one that consistently moves markets. it gives more color as to what the fed is saying. as michelle said, this had a little bit more of a negative town. -- tone. let's look at the bond market to see if there's any reaction to this commentary from the fed. movement, seeing much just a drop of a basis point in the 10 year yield. a little bit of buying but that's consistent with all you have seen for much of the day. i looked on the bloomberg at the two year yield and we are similarly not seen much movement. also watching the u.s. dollar to see if there is any reaction. the dollar reaction -- continuing the trend at slower. one quarter of 1% today. the economic data michelle was referring to is the most recent
number pending home sales for last month. they did come in with a larger drop than estimated. that is something traders are factoring in today. factoring in gold as well. gold was already rising, spiking in fact and the highest in a month. of 7/10 of 1%. we see buying there. people having getting longer on gold recently. bottom we have the gold futures price, which has been bouncing a little bit in 2017. on the topic of gold long as issuing. -- positioning. they are increasing gold, going back to 2007. interesting as we see the rally in the u.s. stock market mostly continues. stocks near highs. going long on gold. julia: for more analysis of the beige book, we go to carl.
i'm just looking at some of the headlines as well. we know about the tightness of the labor market in certain cases, feeding into wage increases, but nothing in these headlines they give anything to worry about on the inflation front. carl: it is all about inflation and especially the wage pass-through effect. one interesting headline, many headlines offering higher wages where the shortages were most severe. this is evidence of this long narrative of the phillips curve flattening out. the relationship has not completely broken apart, it's just a much flatter relationship in past economic cycles. finally we are getting to the point where we have widespread labor shortages. that is starting to resolve into wage pressure. and ongoing narrative, but they are talking with the business
contacts in the district. everyone is complaining about a shortage of labor. it first i -- at first it was skilled labor. are you offering higher wages? the response is always know. it -- always no. employers eventually get desperate enough, they will offer higher wages to attract talent. scarlet: it would eventually start to come down and we will see the wage pressures build up. carl: fest the story for 2017. not necessarily in the first half of the year, maybe not in friday's report, but over the next couple of months with the unemployment rate in the loaf or percent territory -- 4% territory. scarlet: every beige book makes full use of the word "moderate." that's what we have here in today's headlines. i know bloomberg put together its own version of an anecdotal survey of conditions across the country, the orange book. how does the beige book dovetail
with what we have in the orange book? compiling the orange book is basically, whether it is beige or orange, they are trying to a college the same thing. seeing, as yogi berra joked about, the theory and practice are in agreement. the fed has these elaborate models for the economy, but they like to take a step into the real world, talk to business contacts and whatnot and see if there is confirmation of whether models are suggesting. that is what both books do. julia: they say that consumer spending soft and auto sales. they are focused on the auto loan market in particular. we have they do to watch also -- data to watch out also. carl: belief in the auto sector, we get peak autos for the cycle.
we look back to pass economic cycles to see if auto sales which are typically early cycle engine of economic growth. when they peak does consumer sending that spending in a downshift? if they are tapping out, we are not going to see the acceleration of so many economists are anticipating. what we found was in past cycles just because you hit the auto sales in a level that or declined modestly did not mean consumer spending is entrenched as well. we will see other types of consumer spending to support the momentum. we joke about modest to moderate. in the beige book that's been the economic profile over the last eight years. we have been stuck in this 2% growth. on. scarlet: we will see. thank you very much. we will get a glimpse of wage
pressures on friday. earlier today, more insight on monetary policy from robert kaplan. he spoke at the council on foreign relations with our tom keene. he defended the value of the fed's interest rate projections. robert: estimate observing the fed for 30 years, me in my business career, typing is very useful because it gives me a good idea about what every participant around the table is thinking. when there are differences, it gives us a basis to date. -- debate. gdp growth this year would be %.tween 2% and 2.25 it is not the only employment measure i look at. i look at something called u-6, which i will come back to.
my view is inflation will slow over the next two to three years get to 2%. tom: with your wonderful books on leadership, it is implied confidence. in of the great mysteries your district is where is business investment? where is the confidence to move forward? is it because people used to talk to any bs can't figure out where the free write is -- rate is? robert: business confidence is high. there is a lot of business optimism. investment is stronger this year than it spent in the last few years. greatsue is -- that is and it can help gdp growth, but 70% ofproximately 65% to the economy is in the consumer. at the end of the day businesses are more optimistic for several
reasons, but ultimately everyone is watching the consumer. to consumer is the primary driver of gdp growth. business investment helps and businesses are optimistic. do they see it? the disconnect is while they are more optimistic, when you ask a business leader if you see improvement in your business, often times the answer is not yet, but we are expecting it. tom: we are expecting it. link or duration coming out of the financial crisis. does it take time to heal over thinking format of globalization and american business is waiting to pull the trigger on the nostalgic investment we remember? robert: for me i think some business leaders are all that fiscal and other policies might help improve gdp growth. that is part of it. thingstion some of the that have been headwinds what
you don't think are going away, sluggish population growth which is a big impact on consumer spending, and sluggish gdp growth, and also increasing disruption and new business models increasingly are displacing old ones which are getting many business leaders pause even know they want to invest in the business. they are not sure the model they are investing in will be sustainable. that is a countervailing headwind, which is putting -- it's tamping down a bit. town: to go to college station and you have to give a lecture and someone stands up in the back and goes, excuse me, the believe in gdp? the statistics, the traditional models we have don't work anymore. how do you respond to the youngster at texas a&m? robert: here are the things that are clear in things getting debated. gdp growth is not perfect, but it is a pretty good measure of
economic activity. there was an issue a lot of people raise about transfer pricing. apple innovates a phone here but the manufacturing overseas. i still think gdp growth is a pretty good measure. the debate is about the unemployment rate. people have, many gone on television and set 4.4% is a great number, but it is not a real number. i like to go to u-6. u-3 is the headline unemployment rate. unemployed plus discouraged workers plus people working part-time in a better autonomy with -- economy would rather work full-time. that is the definition of slack. julia: roberts cap went in new york. let's check on the bloomberg first word news with mark crumpton. mark: thank you. tesla and spacex ceo elon musk
says he will be president trump's advisory council if united states withdraws in the landmark paris climate records. he tweeted, "don't know which way paris will go, but i'm done all i can to directly advise potus, of is in the white house that we remain." two people familiar with the matter said the president has not decided yet to keep the u.s. in the agreement, but is leaning towards exiting. during the campaign mr. trump is clear if elected he would pull the last out of the accord. british labor leader jeremy corbyn says he will participate in a general election debate tonight as prime minister theresa may maintains her position she would rather direct -- address voters than confront arrival online -- on live tv. the vbc confirms he is a go. may's conservative party lead has sunk -- shrunk dramatically.
he could miss winning a majority. police in manchester, england, say the suicide bomber mostly acted alone in the four days leading up to the attack. according to the telegraph, he is believed to have purchased the main components for the bomb and assembled it himself. three of the 16 people arrested following the bombing have now been released. starting in july thousands of new jersey commuters will be delayed up to 90 minutes when amtrak because maintenance at 10 station. it will affect 7500 passengers. new jersey transit's second busiest line. trains normally going to manhattan will go to hoboken instead. pennak, who owns 10 station, is repairing to tracks damaged the spring. global news 24 hours a day
powered by more than 2600 journalists and analysts in more than 120 countries. i mark crumpton. this is bloomberg. scarlet: thank you so much. prophecy. the global economy will be driving on a spare tire for the next five years. we will take into their latest album and discuss -- latest outlook and discuss the implications. this is bloomberg. ♪
john joins us from our bureau in los angeles. human covering emco for years. -- you have been covering pimco for years. they say there is a 70% chance of a recession next five years. talk to us over the big concern in a long-term. --john: assets are overvalued is what they are saying. the way to protect yourself is don't buy a bunch of risky assets and take some of your gains. stocks have been doing great as the market at the bottom in 2009. take some of those off the table. they also say the recovery has gone on so long historically recoveries don't die of old age this one could the older he gets. prepare for that day. julia: take profits as the market continues to increase, build cash, and then bonded
these things pullback. what they talking about? john: they didn't specifically say -- they use the word "correction," which is typically 10%. they did not predict armageddon or another 2008, but they said user profits now when assets are overvalued to then reinvest and reinvest in assets that have more of an upside. for example, look at emerging markets outside of china. whatever assets can get there. fedher area is as the starts to unwind its balance sheet, they predicted longer-term treasuries. rates will go up. that might be an area to look at down the road when rates go up to invest and capture higher returns. scarlet: for the next three to five years they should build up
cash. pimco puts out this outlook every year. but was its advice last year and how did it play out? john: last year was very similar. they were like watch out for china, watch out for europe, watch out for populism. and thought markets were asset prices were already inflated. since then, since trump's election, the s&p 500 is up 13%. they are like even more assets are overpriced. that is where they were wrong and they were surprised at how will stocks have done and continue to do. the other point pimco is making his they believe central banks are driving without a fed tire. about balanceng sheet retractions, raising rates.
they don't have the policy firepower if they need to prevent a recession. john: that is the point. is not just the u.s.. it is central banks in europe and japan. those have growing balance sheets and they have less room to move. the u.s. has had three rate hikes since it hit the bottom. there will be probably another one in june. one, possiblyting one more this year and another year. arehe case of europe there still zero or negative rates, and japan has a target of zero rate and the balance sheets are growing. they have fewer tools in the u.s. as far as the recovery is concerned. julia: thank you for your insight. john's read more about story and the top interviews on the bloomberg using the function
tv . potentially is north korea. scarlet: he did not even mention that. and china's growth fits in with that. their ability to deal with that is how the economy is growing. if you're talking about 70% chance of recession over five years, cap is that accumulate? 30%, 40%, 50% to 60%? that changes your investing decisions. atll ahead, we will look president trump exiting the paris climate accord. this is bloomberg. ♪
markets. julia: now decipher the business flash, some of the biggest business stories right now. exxon mobil investors approved a explorern urging the to see they can prosper under strict greenhouse gas limits. the board opposed it last year. a 62% yes vote today. only 38% supported the proposal for more disclosure a year ago. united airlines is adding a route from boston to san francisco for premium travelers. mealll also get a free hot and a couple hundred alcohol drink starting july 1. united's upgrades follow similar moves from delta and american. , revenues havese dropped in the second quarter compared to the same time last
year. she financial aphis are spoke to -- the chief financial officer spoke today in new york. >> i will tell you that across the market businesses we are down about 15% year-over-year. the first quarter's second quarter, and the first quarter felt more normal. equities are up slightly. julia: that was jpmorgan speaking there. the commodities close. what it means for opec and video to extend reduction. from new york, this is bloomberg. ♪
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registering the biggest monthly as concerns of flair over the outlook for demand in china. it you can see that china behind me just over 17%. let's move to oil again, as you can see it is down seven percent. opecthe prolonged cuts by it exceeds clearing a surplus. effective as suppliers come into the market from united states and libya. it is all about shale. let's get more perspective on oil, you can see this on the bloomberg at eight. at that is at the top of the chart there if you need it. on the right-hand side you can youover there, let me give what is going on. giving you a sense of
the moves we are seeing in it wti, we are down 2%. that is what is the bars are showing you. let's handed over to scarlett. david: let's get to the latest climatedent trump's change, whether to consider the u.s. in the paris accord. he is leaning towards exiting the deal that is according to several people. joining us from washington is a correspondent. the state ofder play here in washington, do we have any sense of how president trump will make the announcement? what is the through a tweet or a news conference? will it be enough to of his secretaries? >> your guess is as good as mine. we will not have any details on how this is going to be rolled out. we know there is going to be a lot of flux, the situation is fluid and the white house. they were talking about
different options for rolling this out, i think this is something that is still being decided. , corporate course advocacy is one reason why we think this is going to be tougher for the president that he indicated on the campaign trail. a lot of companies across the spectrum are in support of paying and the paris accord. energy companies for instance, what is the argument that this is good? >> there are a number of companies, not just energy companies that say the u.s. retaliation in the form of consumer boycotts. retaliation ifde the u.s. pulls out of the deal, that is kind of the broad argument you here. we also have a lot of companies say the u.s. would forfeit being at the forefront of the energy revolution. for energy companies in
particular you have gas producers that very much want their natural gas to be part of the clean energy solution in reducing greenhouse gases. companies like exxon mobil and shall have weighed in on support of the deal. thanks to our reporter in washington on the u.s. possibly pulling out of the paris accord. julia: let's get perspective on that accord and what that means for energy. is the managing director of clearview energy partners. great to have you on the show. there is a problem here with donald trump, he made the promise on the campaign trail that he would pull united states out of the paris accord that he will have a u-turn if he decides to remain in it, how much do you think that will factor into his decision as he is learning what
the implication means? you for having me. i think the credibility issues significant less than any other president. i think what he does have is a intellectual consistency argument, is he going to be engaged in the world as a activist at the table projecting power and economic might or is he going to be with trying to a more passive posture. i think there is going to be a consistency issue in the sense that he just reasserts the u.s. on the world stage and will be then retreat? julia: i want to sidestep from that actually and as few in terms of the paris accord it's self let's say he decides to take a step away and exit, how can he actually do that?/ are there ways for him to take a and say we are not going to follow through with this of we
are going to still comply with some elements of that, can he stop and exit? >> he has the ability to stand finalize themately spirit the u.s. is on deck to reduce emissions by 20% by the europe 2025, the u.s. is not on track to do that. rolling back regulations would make it even harder for the u.s. to make those projections. to stay in the accord would be a perfectly way of renegotiating the contract. there are more explicit options, leaving the agreement itself, leaving the broader treaty which it is a part of. oth of those have time fuses, he has optionality and all of those areas.
for a dealmaker and negotiator that is a very good place to be. of course he is looking for leverage, he is a dealmaker. talk about that option where he has a lot of optionality. if the u.s. were to leave the accord it would not be effective immediately, while it happened between the time that they say they are going to leave and what will happen when it becomes effective. agreement requires three years notice before you actually leave. during that time there is going to be concessions he may want to an exact from counterparties. one of those is the interpretation of the articles in the agreement. in writing it seems to say that we should be increasing the ambition of the omission projections. way torecast that in a qualify. another thing he may negotiate is to raise the targets for
china, india and other countries that are staying the course when they are and having meaningful compliance. argue that a america first agenda will increase the competitiveness relative to the other parties. abide if they continue to by the admission targets if united states leaves, do you think china would take the pportunity to say-- if you know that the united states is going to turn this out we will do the same? --the course of omissions emissions reductions is a political goal. for china this would carry them on a emissions reductions course anyway. even without the paris agreement, for other countries they are always going to miss the targets, even if the u.s.
remains in it. this will establish a framework that subsequent iterations there could be a clampdown on other countries that miss the targets. this pushes back the days when those clampdown to happen. it was not going to be binding for the better half of five years or a decade. julia: brilliant to check the you -- chat with you. scarlet: let's get your check of the headlines. reports that james comey plans to testify publicly as early as next week. cnn also reports that he has spoken privately with a special counsel to work out the parameters of his testimony to ensure that there are no legal intense. president trump fired him earlier this month as they were investigating russian interference in the election.
offered to call world leaders on his cell phone has reached the diplomatic protocol and raises concerns about the secrecy of presidential communications. mexico andas urged canada to reach him on his cell phone according to a current official. the white house did not respond to questions on the subject. the homeland security secretary is traveling to haiti for a visit less than two weeks after the trump administration suggested that 50,000 haitians in the u.s. should get ready to return home. john kelly will meet privately today with the president and other officials. a statement says they will discuss issues related to recreation. --is not scheduled global news 24 hours a day powered by more than 2600 journalists and analysts, in
today as banks continue to weigh in on the indexes. in terms of sector group and individual performance and the doubt. financials as a group that are the worst performers in the s&p 500. then you have the individual banks that are weighing this heavily. they are down quite a bit today all of this following some comments on the banks at a couple of conferences today. talking about potentially double-digit decline in trading revenue in the current quarter. the bank of america and jpmorgan making some comments while they are talking about some weakening and lending. we are seeing a cool down with the rest of the pack. all this a concern to investors. goldman sachs investors also spoke at the conference and he is the worst performer in the s&p today. they did talk about second quarter trading being light,
they also talked about how the first quarter trading shortfall has led them to refocus on the business. those shares down 3.4%. a lot of it has to do with bond trading specifically. we have some data on that with the estimates for revenue bond trading. in the second quarter of 2017 as opposed to 2016. almost all of the banks are estimated to have a drop in that bond trading revenue with the exception of morgan stanley we will see what they end up reporting, they are offering a cautious tone. the other tone for the banks should be a tightening yield, take a look at the bloomberg. at the curvelook between the five-year on the sixth month where we are seeing a trend reflect the outlook of the increase goal than we have the ratio of the financial with the s&p 500 on the outperformance specifically as we get into 2017.
scarlet: thank you so much. julia: let's get a little perspective on the banking correspondentr who is the banking analyst at guggenheim securities. with the comparison of these banks with brexit and the volatility of markets, they are also fighting with the markets. environment even in the first quarter was not that good, it was just a lot better than the environment you saw one year ago. generally speaking volatility has not been that great actually it has me for a tough slog. scarlet: the cfo of case morgan says they need more idiosyncratic events that caused byajor shift or re-think investors. is that a reasonable expectation that can be met? should bet know if we
rooting for something that that can help the banking community, it shows you how you can end up events are one off and not reoccurring. i do not know if they lead to a better environment. scarlet: we talk about volatility be are high, it feels like blaming low volatility is something we are seeing this time around. eggs have also claimed high volatility for a revenue decline, what is good volatility versus bad volatility? >> it is a bit of a goldilocks situation. it cannot be too high or too low. we are in a unprecedented world where we have three of the central banks moving to very different matters, i think that and thereforemate unusual activity for the banks. you have been writing a
very interesting article about brokerstanley getting to inshore and advise brokers tailor their techniques. tory -- an age-old story of man versus machine. i think the best hope humanity has in fighting off the robots is using algorithms powered by machines and powered by big data. i think some of those are going to be outed pretty soon at morgan stanley and will spread out later this year. julia: what does this mean? it actually analyzes data and climate to match trade to them? >> i mention you are a financial advisor and you have hundreds of clients that you would accumulate over a decade of being an employee. who is the best person to call? who is the person who has a life
event coming up? someone who has ibm and the portfolio and it just blew up, passive overexposure in japan and there is some new research and from morgan stanley, the algorithm actually comes in with andthousands of holdings layered on top of that what could be going on in their life whether they are reaching retirement or they have a daughter who is going to be 16th and should you some advice on the best driving schools, all of that information will be pushed to the advisor. scarlet: will this make it so that they cannot leave morgan stanley as they are so reliant on that platform, maybe they will be able to lower some of their clients in? >> that is a great point you make, i think it will be harder for people to move around. it will make it harder for them that the value add will be with fa ilatform, if i am the
will take them with me. that is going to start to change. , you: my comment on this are saying man and machine working. i do not know if people will be replaced here, -- scarlet: julia is getting ready for me to be replaced by a robot. this is a firm that has been trying to reduce their element on trading. at trading revenue in the second quarter we do not know, where else can banks look due to drum up business, what can they look to? there are so many businesses they can be involved in. even at morgan stanley who has security as a part of the revenue stream read it is still revenue. i do not know if there are a lot of places to hide in this market. they continue to be very robust.
irony for the benefit of jpmorgan. the overall market is weak, it is improving over the course of last year, speaking we are in the process where the outlook is going to see this most pressure. julia: thank you so much for your insight there. covering the sector for banking on bloomberg. our banking coverage does not stop here, you can catch our interviews with the ceo of kong asking him whether -- scarlet: coming up next, college football teams that rely on charters, they are increasingly finding themselves without pay. we will explain. this is bloomberg. ♪
♪ julia: this is bloomberg marketsjulia:. football teams or be left on the sidelines, airlines cutting back on charter planes and that is sending some college and pro football teams scrambling to find other modes of transportation. let's bring in our sports reporter. demand about high treble but there was a conference realignment three years ago that also tells part of the story. >> college sports have chased that tv dollar and's brother conference so far, then you have teams like west virginia who are 800 miles away from the closest rivals and that sets up higher demand on charter travel. airlines started making a lot of profit. to fly theseant teams charter was anymore, the
teams needed now more than ever, it has treated this odd confluence. scarlet: for some reason i thought people travel by bus. julia: that is different for us. how much do these football teams pay on average? >> is the cost $100,000 on average, back in the day this was the way teams travel. but then you had reasonable -- regional leagues, not you have alabama flying over to california to play. they are not going to put those guys on a bus. julia: $500,000 per year at least? talked aboutave how college expenditures are going crazy with boards. this is also a area where they want to spend more money, they cannot find people to take their money. theye talked to people who
cannot find a airline that is going to fly my guys. scarlet: it is not just american airlines or united, is there anyone still seeking out this business? >> the airlines you and i might fly, they are willing to take on other clients in the way the legacy are not. then there are lower right -- lower rate carriers that are having to take on the business. julia: rather than chartering it out for $100,000 they could be using this on commercial flights and taking more money. >> colleges are asking so much of these airlines, if you are flying a football team, you are sitting on the tarmac all day saturday and then fly back on saturday. 436 hours or so where your plane is making a two-hour flight one way and that a two hour flight back. compared to put that in the rotation of a commercial business, it is a no-brainer. scarlet: we mentioned the pro football because they also use twice as well.
>> it is different for produce because they have even more demand, the proteins one to fly out on these huge airlines with the double rows and the ones that have huge seating. the problem they are having is that these smaller airlines do not own the planes, they do not even have those options. julia: there has to be a business opportunity here somewhere. scarlet: she is scheming already. thank you so much. coming up, president trump is getting ready to make the prime minister of the at. we are live at the white house with a preview of that meeting. this is bloomberg. ♪
julia: we are live in the world headquarters in new york for the next hour. here are the top stories we are following around the world. in politics, trade take center stage at the white house. president trump is set to discuss financial trade agreements with the vietnamese president in just a few moments. staying in politics, the president comments on the paris accord is in the pipeline. we discussed what that exit could mean for the energy industry. an economic boon, as rate hikes could be affected by economic growth. the former minneapolis president tells us why the fed should not be afraid of growth. we are one hour from the close of trading, let's get a check on the forecast. julie: like yesterday it is
relatively muted. all the averages are down. the nasdaq has rallied for several sessions in a row. that is leading decline after outperforming during the month and the year to date. as we come to the close of the month let's get a look at the groups at how they perform in the s&p 500. take a look at the bloomberg here, we have technology and the top spot rallying along with you at least there have been some investors and traders who have been asking questions about the sustainability of the rally when you have a cyclical rally. also there is another challenge for the rally and that these two bottom groups continue to underperform. make up 20% ofto the s&p 500 together. those two groups are underperforming again today. if you look at energy to date you have oil prices now around this session, as investors and
traders look to tomorrow's inventory report. onthe holiday week's thursday at 11:00 a.m. where you have the oil prices down. not a huge decline but dragging down energy shares overall. also in terms of oil if you look at the move there again on the bloomberg you see a 2.4% decline on the month. that means of the past five months for of them have seen decline in oil prices down around 10%. it has not had a three-month losing streak since the beginning of 2016. as for the financials there we are seeing a decline earlier with some commentary coming out of various investor conferences and a little bit of pessimism, that is pushing down with the banks once again. in addition to that we had rates
they continue to falter to some extent. if you look at 10 year and the the yielday we have on the 10 year going down. julia: thank you, julie. scarlet: the enemies prime minister has just arrived for a meeting with donald trump trade we are expecting trade to be high on their agenda, joining us now is kevin cirilli. becauseart with trade the at not would have been a beneficiary of the u.s. had signed on with the tpp. the u.s. with from that under president trump. kevin: the at not being one of the main benefactors of trade especially with the tpp. it is not just trade negotiations that are going to take place with the meeting that is about to be underway. the prime minister just arriving here behind me to enter into the white house. not just trade though, of course
they are going to be talking about environmental protection as the backdrop for all of this with the president's decision to will he or won't he removed himself from the paris accord. the reports earlier today suggest that he will just do that. nobody will be able to announce officially, just inside the white house at the briefing of sean spicer he said that when the president have the decision to announce he is going to announce it. as of yet there has been no official statement from the white house. there is a policy decision between the white house officials and everyone from ivanka trump to elon musk. we are now hearing them threatening to leave the white house business group of advisers. taking that question head-on saying the president hears from a variety of people on a wealth of different issues and could not comment further. a busy day here at the white house.
the meeting with the prime minister of vietnam with the paris accord and whether or not the president will stay in a. julia: we have heard already on numerous ceos and some of the biggest energy ceos have backed the energy accord. we are wondering if this is a credibility issue, we are wondering if the idea of you turning on this with a promise he made on the campaign is a bigger deal than the credibility he takes with particular the business community as he decides to pull out from the paris accord. how do you think he is thinking about this? a great point, we talked to somevin: sources with the coke brother orbit. they told me that they were again against the paris agreement. there are various sectors that are in agreement that they do not like the environmental
protection standards and they feel this is a waste of bureaucracy. it is also worth noting that the people who have come out against this. expected to be in favor of leading this has been an line with other folks such as elon musk and ivanka trump. they are asking to stay in the paris agreement, we should also in theat earlier today wall street journal the officials say h.r. mcmaster and does not-- gary cohn mean they will go it alone. coming just off the heels of angela merkel suggesting they may have to put european interests and not wait for the u.s., withdrawing from the paris accord is looking to work with conservative aligned interest
groups such as the koch brothers as opposed to predominate ideology that has dominated the business community. scarlet: somehow we managed to get the missile all caps asian without managing to talk about james comey. willingness to talk about testifying? we are all watching for him to a. i spoke to a senior source this afternoon he told and of the game plan is to have james comey testify publicly next week. before the senate intelligence committee, the sources i have talked to say that of all the folks who are anxious to talk publicly. he says it will be interesting nonetheless, they will definitely continue this in the west wing to separate the communication strategy and the policy discussions as well as
the russia probe. hearing that the house will vote on a bill proposed by the chairman to reveal parts of dodd-frank, that is going to happen thursday or friday. chieft: bloomberg correspondent kevin cirilli. oftty incredible, the list things that have to be done. james comey testifying will be huge. how much he will be allowed to say, how much he is going to be constrained by what people are investigating. julia: that is huge. the america first versus america alone. a lot of the criticisms of other countries, whether they have this facing with trade, that is the delivery here. it is a bit of a problem.
scarlet: working doubly down to make america great again. let's get a check of the other headlines with mark crumpton. before we get to him, there is what it means. government media center has raised the death toll to 90 people after a bombing and couple. no group has claimed responsibility for the attack. it happened at a highly secure diplomatic area. top religious bodies from the condemned the attack those those carrying out attacks during ramadan is completely against humanity. the russian prime minister says the kurdish led syrian forces have struck a deal with that extremists offering them a safe card. soon after the russian defense ministry made the information
public some fighters started moving towards palmyra but never reached their target. with the election scheduled for next week in the u.k. many polls suggest that theresa may could lose the general election. the prime minister had this response. >> the only poll that matters is the one that is going to take place on the eighth of june then people will have a choice on who they want to be their leader or who they want is a prime minister. i have the plan for brexit negotiations that i also have the plan to build a stronger more prosperous with them. >> the prime minister made her comments at a campaign event. the owners of that los angeles dodgers say that team is now worth two and a half billion dollars. this after they are trying to sell a majority stake, the other say $2.5 billion making it the
first professional sports team to sell for more than $2 million. the doctors benefit from a that's all foral a $.3 billion over 20 five years. 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. much, weank you so have a headline coming across the bloomberg from president trump eating with the vietnamese prime minister. let's have a look at what is happening there. this is a speculation of something of a deal happening from vietnam and the united states. scarlet: definitely forthcoming. it feels like it is that my being overshadowed by everything else that is going on. everyone wants to know when the u.s. is going to do so. president trump making some comments that that decision is
coming very soon. he is hearing from a lot of people both ways on paris. within the white house in his administration, jared kushner, ivanka trump are very much on the side of staying within the paris accord and making changes from that position as opposed to pulling out. julia: how he translates that to the campaign promises he made an we can expect something on the -- never a goal moment from the white house. this is bloomberg. ♪
business flash at a look at one of the biggest stories in the news right now. in italy, the bank is set to finalize their plans, the bank needs help to cover the losses selling $34 billion in bad loans. we talked to the ceo. >> there are a number of institutions regarding this process. there are different procedures. we need to respect all of them. we are goingt that to close all of the technical discussions and then finalize the restructuring debate. julia: the ceo speaking there. warren buffett and ken griffin taking opposing benefits on energy companies. ash the general reassurance a stake is worth $200 million.
they plan to increase the hedge funds positioned by 26% to $150 million. their bid tot extend tomorrow's deadlines for a rival. the company confirms that the financial regulator in the netherlands is taking the extension request. the bp bg decide on whether to make a hostile bid. a judge rejected a bid for a shareholder vote. that is your business flash update. scarlet: let's turn out to policy and washington, congress to get a look at the budget proposal earlier this month. the $1 trillion plan plans on using the private sector to improve the facilities of the nation and build a contentious border wall. this morning, vonnie quinn spoke to a ceo and asked him what he
makes of the proposal. >> we are still very optimistic that we will see a bill later this year. we have broad bipartisan support for a infrastructure bill. we have broad support at the state and local level. i am quite confident that we will see this bill later this year. forhere is a lot of support some procedures to get through and also the legislation that is already being held up from investigations and obstructionism. with just a lack of momentum in washington, does that concern you? >> of course it does have a we have seen a lack of momentum. broadk there is a bipartisan support on both sides of the aisle. the a pair down of obstruction, i think we will soon fall of those bills together and we will see the right support to get something done. >> what parts of the president's budget proposal regarding infrastructure have this? >> certainly the proposal to
allocate $200 million of money to leverage private sector investments and state investment is the most important part of that though. we have seen the brooklyn -- blueprint for that in the past. we know it works. to leverage the private sector investments and have state and local investments. that is just one part of the solution. another part of the solution that is trying to get some momentum is a increase in the federal excise tax. we have not seen a increase in that in 24 years. if we would just adjust that over the inflation time we would produce 27 billion additional funds for construction. >> have you had conversations with the president? >> i have not have direct conversations that i've had many discussions with the secretary of commerce and transportation as well as other members of the
white house to our bogus on infrastructure. we are helping formulate a policy towards that. they have been receptive of input with the private sector. >> what have you already put it on? >> we have tens of thousands of projects around the world at any given point in time. we did produce a study for the treasury department back in december up up the top 40 projects in this country that we think should move forward as a priority. those projects estimate three or four times their cost with economic benefit to the community. >> can you give us an example of what projects? >> the gateway total and new york is one example. the gateway tunnel to improve the flow of people that are working in the city and coming in and out of the city. it will reduce -- scarlet: we want to interrupt
here because president trump is speaking with the vietnamese prime minister moments earlier. listen and. >> it is an honor to have the prime minister of vietnam at the white house. has done ainister spectacular job in vietnam. led so many different categories of trade. we are going to be discussing north korea. to seeing himd together. very much so. >> [speaking vietnamese] i would like to thank the president for this visit. the warmest me
>> i have had the great pleasure of having a conversation with the president with the exchange of letters. i am impressed by his openness meetingident that our majoret out to have directions for the u.s. and vietnam corporations. and the interest of peace stability. in the asia-pacific. we very much look forward to mr. the economicnd
meeting and vietnam. as well as have a official visit in november this year. thank you. julia: that was donald speaking with the prime minister of vietnam. a number of critical issues there, vietnam was one of the countries to benefit from the tpp. scarlet: the other thing here, i think it is clear that vietnam was hoping that the united states would offset some of the power of china in the region. the relationship with donald trump is widely important. one of the fears i have talked to people about is that obviously the united states needs china to help with north korea. the united states needs ground on the china seas to leverage
the relationship, that is one of the big fears here from vietnam. it is something we are going to continue to watch with our reports. the u.s. just recently normalized relationships with vietnam under president obama. we are also keeping an eye on what president trump does and says with the paris accord. no decision on that has been made. we have heard that that decision is coming very soon. he is hearing from a lot of people on the paris accord and there are a lot of ways to go about it. he could get out completely, he could stay in. with the obama regulations, the u.s. is like going to actively try to do anything when it comes to climate change. julia: he has learned about the options available to him. we have some breaking news, speaker said to have a that will rival google and
amazon. let's head over to alex webb with the details on this story. alex: we think it could be up as soon as next week. we see this in the south bay and the greater san francisco area. it is something that has been in the works for a long time. google and amazon have had their speakers out for two years. apple is playing a little bit of ketchup. scarlet: apple is playing catch-up and it is really are not ahead of this. siri speaker it fit in with their ecosystem? >> when you look at the way amazon works with the echo and that. -- dot. ony do not make much money the hardware, they use it as a gateway to sell for their products trade through amazon.com.
apple makes money through hardware, over the months they have been trying to pursue their business. in some ways it is a measure to make sure people keep using apple services and not use those competitors. the question is whether they will make less margin on the hardware to make some more money on the software, we will have to see what pricing is scarlet:. scarlet:thank you so much. this is a story you can find on the bloomberg and we will continue to follow the apple development. i think they need to change the name. this is bloomberg. ♪
nations. the twitter page quotes secretary-general as saying climate change is undeniable. climate change is unstoppable. climate solutions provide opportunities that are unmatchable. saidspeech yesterday he that it would be very important for the u.s. not to leave the paris agreement. the european union and china will reaffirm their commitment to the paris accord this week even if the u.s. pulls read that is according to the associated press citing a eu official. they will have their plans to make commitments in talks at brussels friday. sri lanka says the death toll from mudslides has climbed past 200 people. nearly 100 others were missing. beeny 7000 people have displaced after rain began