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tv   Bloomberg Markets Americas  Bloomberg  June 5, 2017 2:00pm-3:31pm EDT

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scarlet: we're live in bloomberg world headquarters. in politics, changes in the air in washington. president trump unveiling his proposal to spin off the air traffic control system to a nonprofit, as part of his weeklong push for his infrastructure plan. jpmorgan ceo jamie dimon is optimistic about the president's economic agenda. he told bloomberg exclusively why he is hopefully even though he disagrees with the white house stance on trade. updates are coming to the apple watch and apple tv at its annual worldwide developers conference, with much more still to come. let's get a check and where stocks are moving with julie hyman. right now the indexes are not moving up a lot. julie: not really, after the
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records for the three last week. we settle back once again. the gains we have seen were not dramatic ones. it has been slow and incremental progress. volatility continues to be very low as well. take a look at the bloomberg. we have vix and yellow and a correlation between stocks in the s&p 500. this is something that has been a part of the conversation about low volatility that we were not seeing much correlation between stocks. that was one of the things that was tied in with volatility being low. correlation appears to have bottomed, at least for the short term, and is going back up to stock movements are a little more tightly correlated we will see if that is indeed a precursor to the vix rebounding at all. in terms of what is moving, to some extent we have strength and financials. not a future amount, but enough to offset some of the losses we are seeing in drugmakers, for example.
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jpmorgan, citigroup, and bank of america are trading higher, along with a bump up in rights, after a relatively stable number in the services report. treasuries can we are seeing small increases in yields today. that appears to be helping financials. julia? julia: now to washington. president donald trump kicked off a weeklong push for his infrastructure plan with her proposal to privatize air-traffic control. he unveiled proposal in the east room. for too manymp: years our country has tolerated acceptable delays in the airport, long wait times of the tarmac, and a slowing of traffic that costs us billions and billions of dollars in lost hours and lost dollars themselves. today we are proposing to take american air travel into the future, finally. finally. trump'sor more on
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critical week ahead, let's go to washington correspondent kevin cirilli at the white house. give us the highlights of what was announced today. the question for me is how likely are we to get concrete action on this? kevin: that is the big question. president trump earlier today joined by vice president mike pence as well as house transportation committee chairman bill shuster in the east room, where they unveiled this outline of sorts of the transportation plan. this really is just a way to privatize regulatory regimes surrounding the air-traffic control industry. it would give more power to the airline industry in order to do this. supporters of this say that it will cut wait times and make the industry more efficient. but, julia, there is no question it is a big win for delta airlines, american airlines, as well as the airline industry, and lobbying for this for some time, a total reversal of policy
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from the previous administration under former president barack obama. it is the start of infrastructure week. they will head to cincinnati on wednesday to continue with that type of language take one look at the president's twitter account and it looks like the president has other things on his mind. scarlet: something else we need to keep in mind as well is what republican senator john thune said today. he said getting a bill to president trump's desk will require bipartisan support as well as consensus among the aviation community on the way forward. kevin, given all of that can what is the likelihood of hybridization of air-traffic control? -- privatization of air-traffic control? kevin: it will be interesting to see how they pay for it. democrats say they wanted to chile dollar infrastructure plan. president trump is calling for a $1 trillion infrastructure plan. says theytive shuster would like to use a repatriated
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tax fund as a mechanism for funding. that thisalso note will be quite difficult in terms of the appetite for this. some of said they are not sure the economy could handle the seventh economic stimulus and perhaps there's not much of an appetite for it. just in terms of tax reform, health care policy, which is ahead of any type of transportation package they would hope to get to come all of that is still underway as well. meanwhile, top u.s. intelligence community officials are set to ,estify before congress including former fbi director james comey goo jared kushner, o has reportedly been of the center of probes for his communication with russian officials, was sitting front row in the eastern, a company by his wife, the president's daughter ivanka trump. busy week. -- kevindefense really cirilli will be very busy this week. jamie dimon said he is an
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american patriot who wants to help the president of the united states. with himdimon agrees on issues like financial reform can he disagrees on other issues, including the transpacific partnership with here is what he told our stephen engle at the global china summit in beijing. tpp.jamie: i was in favor of i'm comforted by the fact that wilbur ross and steve mnuchin are negotiating as we speak. an additional trade agreement with china, and i'm here and they want to do something with nafta. we have wonderful and peaceful neighbors in mexico. to the extent that things are unfair, there are things that are unfair on trade. we think these five or six or 10 have to be a little fairer. i'm for free and fair trade and ietimes it isn't fair haven't thought about it very much -- >> should the united states take
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part in the agreements that china is pushing for? jamie: i would have, but i haven't looked at it in a long time. if they are properly structured and governed, helping nations develop and regions develop is a good thing. if it is done well, i would participate. in america's interest in china's interest that we both do well to it is not one against the other. it is a mistake to look at it as a zero-sum game. >> how is the u.s. economy right now? in the second quarter, trading revenue is taking a dip. it is a two-part question. jamie: trading is like a weapon. it goes up -- it is like the weather. it goes up and down. gon we do trading, we
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to clients around the world, and over 20 years, it is going to go up -- what is it next week or next month? i couldn't possibly tell you. the u.s. economy has been chugging along, a very long recovery, it is a weak recovery. and there is no great weeks but in the american economy. if you make wise policy decisions -- it will take a while -- corporate tax, infrastructure, regulatory reform, and other things can we could grow the economy more. i feel quite strong about it. about -- china is pushing infrastructure. what needs to be done in the united states? jamie: we have until the major airport in 20 years. and told it takes 10 years to get the average permit for one bridge. we have not built a bridge in new york city -- we are building one now, first one in like 50 years. i just came from hong kong. it is embarrassing america should get back to building and
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constructing, it's permanent and rules and requirements. we got to get back to a can-do attitude about infrastructure. it is our country, and we're getting behind, and we shouldn't. it damages growth. the exclusives interview with jamie dimon, chairman and ceo of jpmorgan. for more insight into trump's critical week ahead, let's bring in mike mckee. hi, mike. as kevin was saying earlier, this isn't new as far as the aviation control hybridization is concerned. -- privatization is concerned. the legislation was produced last year. the problem is, it failed in the senate. why does this have more possibility now? michael: you do have a republican president now in office who in here he could push to get this through. one of the problems with the bill passed or was it remove oversight for the money,
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appropriations for the faa, because it was a semi private corporation, and the cardinals in the senate, the committee chairs who appropriate the money , do not want to lose control. it does not look like they have support for this. it is very personal because the idea of having some nonprofit corporation -- the once you think about our amtrak and the postal service, and they are not anybody's idea of great successes. how this is structured and would thisead, hard to see at point. at least this is a fully formed plan. none of the rest of it really is. on friday come when they tried to reduce the this point. amount of time to produce permanent, people will get behind that. it will be talked to sell to environmentalist -- tough to sell to environmentalists. we don't know what he will propose. perhaps a little like the tax reform presentation they made a month or so ago. scarlet: it seems like there is been a lot less lipservice paid over the last month to
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infrastructure as opposed to tax reform or health care. in terms ofnow how much the president is going to commit? there was that $1 billion price tag -- michael: trillion. scarlet: where did the number come from? michael: trump would talk on the campaign trail about $1 trillion, but he never proposed a trillion dollars in federal spending, and a lot of people in themichael: investment communitt he it, because he kept ringing it up to but his campaign 200 billion to take dollars -- they never specified where they would get it come but everybody assumed it would be repatriation of overseas corporate cash -- the future took that and used that as loan guarantees and tax credits for private partnerships, so they wouldn't have to take 100% risk on those partnerships, then you auld leverage that up into trillion. there were no specifics on what you would spend the money on.
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everybody, including jamie dimon, talking about bridges and roads, but i have not defined what infrastructure is. it is a new internet, electrical grid, security at airports? -- at ports? scarlet: building the wall. michael: building the wall. whose infrastructure, who gets the money, how do you pay for it -- none of that has been answered yet. if they could answer some of those questions, maybe they could get some bipartisan support. julia: probability of that in 2017? michael: oh, in 2017, probably nothing, unless they put aside $100 billion as part of another bill to do a direct spend. they will not get any kind of public-private partnership deal this year. julia: 2018? michael: it is a possibility because members of congress are running for reelection -- julia: aha. andael: and they like dams roads they can point to and say
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i did that. julia: or at least talk about it. now let's check on "first word" news with mark crumpton. mark: julia, thank you. 2 of the three men suspected of carrying out this weekend's terror attack in london have been identified. please kill all of them at the scene. -- police killed all of them at the scene. one of them, 27 year, was reportedly known to authorities, but authorities say there was no evidence was planning an attack. police are working to identify the third man. ,he british prime minister theresa may, is signaling she will seek new powers to root out terrorism. a tough line the day after the attacks in london the left seven people dead. those attacks occurred as the u.k. prepared for thursday's election. the prime and mr. says that stamping out terror will require -- prime minister says that stamping on camera will require difficult and often embarrassing conversations. labor party leader jeremy corbyn
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attacked her record as home secretary. she pointed to her cuts in police budgets and warned that you cannot take the public on the cheek. militarysays operations to drive islamic state out of strongholds in syria -- the u.s. has been arming syrian kurds for the operation in the city of raqqa. turkey considers those forces to be terrorists, and they are worried that the weapons will end up in the hands of turkish kurds who are fighting for autonomy. the decision by saudi arabia, egypt, bahrain, and the united arab emirates to sever diplomatic ties with qatar should not have any impact on u.s. military operations. central command says there are no plans to make any changes. central command and its 10,000 u.s. troops are based in qatar. the country has accused qatar of supporting terrorism. the u.s. supreme court has agreed to take up a major digital privacy issue. it will consider whether police need a warrant to review records from cell phone towers.
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law enforcement often uses such records to track the locations of suspects. recent high court rulings have been protective of digital privacy rights. global news 24 hours a day powered by more than 2600 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. scarlet? scarlet: we have some breaking news. the white house is saying that president trump will not exert executive privilege for james comey. the former fbi director will be testifying, or at least is scheduled to testify before the senate on thursday. there were questions about whether the white house would claim executive privilege. it comes out from the president's spokeswoman, sarah huckabee sanders, that the white house will not do so. coming up, we go live to san diego, california, with highlights from the apple worldwide conference, including tim cook's introduction of a new operating system, ios 11. you can follow all the news,
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analysis, and market reaction on the bloomberg. this is bloomberg. ♪
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julia: this is "bloomberg markets." i'm julia chatterley. scarlet: i'm scarlet fu. aside from the new iphone launch, it is apple's biggest event of the of the year, setting the stage for hardware and software that will hit the market in the next year and a half. for more on what has been unveiled so far, let's go to johnson in san jose. there is the headline on the control center, new map features . what has been the biggest take away for you so far? them i was thinking about
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working all year long trying to make stuff better. little things that are so complicated to do apple unveiling today. theof the big focuses is, imessage functionality. an interesting thing they unveiled is the ability to send money via imessage and apple pay. i owe juliee 100.-- u $100 for drinks and i can respond to tonight i had that much, and it is part of paypal, and other companies like square are involved in payment systems. this is apple going right around them to get another business line, and you can see them thinking about that as another way to do services with the announcements they did today. julia: i want to talk to you about siri, and updated voice
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comes with that will sound better, too. wondering how that will integrate with the home, challenging the likes of amazon and google. what have we put on that so far? cory: literally talking about that right now, the way they're using messaging to control the home app. don't really know if it will be a separate product or on the phone itself. with siri more incorporated into the macintosh, ipads, and the iphone as well -- that is a bellringing on a train here, case,rail train -- in any it is a sign that they are competing with android and these devices, and they expect siri is there a girl on all kinds of things as they relate to artificial intelligence. scarlet: go back to the map function. a lot of criticism has been
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levied at apple in the past about not making that more user-friendly. why is it so significant for apple to make this work? cory: part of it is making sure that the phone is centered and one of the things they announced is a lot of internal mapping. 30 airports across the country. trying to find ways to get ahead of google, and 3-d mapping as well. it is a place that apple has invested enormous resources, and they think they can win this one in the long run. julia: i just want to ask you as well above what we have heard so far about augmented reality. a lot of questions being asked about how the bush is -- when you look at the software developing or the hardware, the new announcements they have made today, if there is a symbolic message here from apple that we see this is the future and the way we are headed. cory: i think some symbolic -- i
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think symbolic is a good way to put it. ahead the demonstrations in the last hour was they had a game developer on a set and she was usinga vr device to build a world -- "star wars" world in this case, she is a lucasarts developer -- and she is showing new things created on the screen. they are thinking very much about these virtual worlds and 3-d worlds, designing in them and with them. it was fascinating to see and that is how they are focused on apple right now. scarlet: cory johnson reporting from san jose, california. we will keep you posted on headlines that come out of the apple developer worldwide conference -- i have that the other way around, the apple worldwide developers conference. julia: we get it. you can follow all the news and analysis and market reaction on the bloomberg. from new york, this is bloomberg. ♪
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scarlet: this is "bloomberg markets." i am scarlet fu. julia: i'm julia chatterley. time for the biggest business stories in the news right now. technology companies are refuting prime minister theresa may's claims that they provide a safe haven for terrorists. facebook says they want to be a hostile environment for terrorists. google says it has invested several million pounds to fighting them on the platform. there are calls for greater internet regulations following this weekend's london terrorist attack a billionaire hedge fund manager is not as bullish on president trump as he once was. linkedin post, he says that the more he sees trouble moving towards conflict instead of --
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trump moving towards conflict of -- he sees at harming his presidency. according to "the washington post," students at harvard created a private messaging group that mocked the death of children in the holocaust. the school says it is not comment on the application admission process. scarlet: still ahead, the commodities close. , bahrain, anduae egypt seven to monetize with qatar -- severed diplomatic ties with qatar this is bloomberg. ♪
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scarlet: from bloomberg world headquarters in midtown manhattan, this is "bloomberg markets." i am scarlet fu. let's begin with oil, the big
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story of the day, ending the war on vacations that the diplomatic standoff between qatar and saudi arabia will do much to disrupt supply. crude oil has held below $50 a barrel in new york on expectation that production cuts globale enough to shrink inventories because u.s. output has been expanding. let's turn to metals. zinc falling for the 50 day and heading for the lowest close in six months. it is part of a broad retreat in the sector. we have copper, nickel, and aluminum falling today. let's move to soft commodities and show you wheat. see it on g #btv 9130. the white line shows you spring futures from which is actually trading at a wider premium. spring wheat is trading at a whiter than usual premium to the winter varieties. the reason why is gluten. a lot of people actively avoid gluten, but wheat traders cannot
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get enough of the stuff. sentunt for gluten has spring wheat to the highest level since mid-january. julia: let's turn back our focus to the middle east from where escalating tensions over iran are coming to a head for u.s. arab allies saudi arabia, united arab emirates, bahrain, and egypt severing ties with qatar over ties with islamist groups and iran. >> a dramatic few hours for this part of the world as a saudi arabia, united arab emirates, egypt, and bahrain cut off ties with qatar, including a shutdown and landirspace, crossings come in response to what saudis maintained is a lack of conviction from the qatari front when it comes to the global financial market they are planning to the -- will fight on terror. they are pointing to the
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burgeoning relationship with iran. they are saying that they will thwart efforts to negatively impact the economy. of this moveness is unprecedented for this part of the world. best way to compare it is a country like germany within a closely integrated community like the european union making moves like this on a neighbor like italy or spain. as a result, we did see a dramatic move in some of the asset classes computer pressure on qatari stocks, all sold off over 7%. wti coming into the spotlight with the fundamental role that qatar place not just in opec but as a global supplier. quick reminder that there is a human toll, human component to the story with qataris in the uae being asked to leave within 14 days, and uae citizens prohibited from traveling to qatar as well.
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bloomberg news, dubai. scarlet: let's get more insight on what this action against qatar could mean for oil prices. joining us is bloomberg intelligence commodities analyst. let me ask the obvious question right from the start. why isn't this having more of an impact on oil prices? it gave up again and it is now down like any other day. >> they came off the lows and that might be an indication it is not that significant. but political issues with qatar in that part of the world might be somewhat negative, because opec has the coordinated politically. if they are not, they might be less coordinated on cuts, and that is the main thing supporting the oil market, cuts. we know that the oil market is oversupplied. but things have really shifted and weekend show these -- we can show these charts. demand versus supply has switched to positive. the key thing i'm interesting in is energy groups -- there --
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they have shifted to flattening. the market is looking hedge or rebalance. scarlet: that is what we are -- julia: that is what we are showing you and this chart here. ,ike: topline, yellow line demand versus fly -- i'm sorry, that is the top line, the one-year futures curve. you can see by moving up it is almost flat, almost 1%. further out prices are about the same from which means it is expecting a decline. you can see with the market is expecting. the market is pricing for that, and it could be wrong, but it is pricing for that. the other line that is straight up his demand versus supply. these opec cuts are kicking in. is are i mean, the qatar very important for oil, energy in europe, asia. we have also seen this region what,wars in opec's,
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57-year history, and agreements over oil supplies have held in that period, because i guess economic interests take precedence over everything. mike: i would say some of that is true, but if you look back to the biggest war, iran versus iraq, oil prices went down. when it kicked in, they had the supply. when you think of qatar, i focus on natural gas. guess what, lng is down today, too. probably not a big deal unless there is some form -- i don't --t to use the word "war" missiles flying, that is a problem. the market is focusing on supply and demand. julia: watch for an escalation, but right now -- yeah. scarlet: what we also want to keep in my nose positioning by long-term investors and speculators. net long coming down on crude btv 9139 --the blue
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line is what you want to pay attention to. mike: another key thing that is changed in energy. hedge funds were overweight earlier in the year. not so good. the markets dropped $10 from 55 to 45, 47 or so now. a little better foundation. the markets have seen the definitive from opec -- i'm not overall bullish, but you see a good bottom forming. the market bounces up to maybe have percent now. -- half a percent now. scarlet: given the reaction we are seeing, what would have to happen for the bottom to drop out, to get to the mid 40's or low 40's? a good question. maybe some form of issues in opec where so-and-so says we
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have to supply and we are going to break through the agreement. one thing that you focus on is it is a market that is oversupplied. never going to be really bullish. a market that is shifting to see, i see ine the bar commodity standpoint, energy is stuck in a range. to june, july, august, growing season in the u.s., off the chart exports, that is an area and commodities that potentially has a good spark potential. julia: on the compliance. intelligenceomberg quantities analyst. let's check on the headlines on "first word" news this hour with mark crumpton. mark: the white house said president will not use executive privilege to stop james comey from testifying to members of the senate. there was speculation the president would invoke a privilege to prevent mr. comey
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from providing potentially damaging testimony. comey is scheduled to appear before the senate intelligence committee on thursday. the president today proposed a plan to privatize the air-traffic control system. prior to sending decision memo, the president said the current system is stuck in the past. too many trump: for years our country has tolerated unacceptable delays at the airport, long wait times on the tarmac, and a slowing of farmers and travel that cost us billions and billions of dollars in lost hours and lost dollars themselves. today we are proposing to take american air travel into the future, finally, finally. mark: the major airlines have long supported the idea, taking away air-traffic responsibilities from the federal aviation administration. vladimir putin is downplaying reports of russian interference
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in u.s. politics. president putin tells nbc news he is unaware of her proposal from president trump's son-in-law jared kushner to set up a back channel between the incoming administration and the kremlin. president putin also said it is nonsense to say russia has collected compromise material about president trump. a spacex rocket blasting off over the weekend delivered a supply ship to the international space station today. the first time a delivery should has made a return to the station. the dragon ship last drop off a shipment three years ago. often made -- space shuttles made return trips to the station before they were retired in 2011. global news 24 hours a day powered by more than 2600 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. julia? julia: thanks so much, mark. coming up, john paulson struggling to keep investors from leaving after a string of mishaps.
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all the details next. from new york, this is bloomberg. ♪
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julia: this is "bloomberg markets." i am julia chatterley. scarlet: i'm scarlet fu. let's get a check on markets with julie hyman. we are seeing a lot of movement in health care. julie: that is partially because right now there is a meeting of oncologists that goes on annually. a lot of study results are presented there's a lot of movers on other health-care headlines as well. insight and atomic is one of the worst-performing stocks in the s&p 500 today. the company presented results of its experimental treatment for kidney cancer and showed positive results. our analyst at bloomberg intelligence said it is a small
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step forward but does not move the needle on the vote for cap for kidney cancer. that looks like it is contributing to declines today. bristol-myers is down. the company mentioned cautiously at barclays. the analyst is talking about comments made by the chief scientific officer at the american society for clinical oncologists, the meeting i mentioned going on. he said there is lack of clarity on the entry into frontline on cancer treatments. those shares are down 5%. june a therapeutics is taking a vacation ever the company presented results of the study in which an elderly patient died of side effects of a therapy trial to treat cancer. it did wipe out cancer in some patients that that was not enough to outweigh the deaths related to it. we have a couple the client as well -- couple declines as well -- the company
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talked about it in the past and presented what it says is new research showing that express versus pulling support for one llinckrodt's drugs. perrigo is being downgraded to underperform. the consumer unit is facing headwinds. but it is not all negative in health care today at all. a standout to the upside, and then some -- 46%. the company's experimental cancer drug is shown positive results. another on the list, it's cancer drug joint at 23% response rate. biobloomberg b-- bluebird gene therapy showing the best results for most patients. julia: thanks so much, julie. a big name in the world of hedge funds, john paulson, shot to fame betting on the collapse of the housing market.
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now he is struggling to persuade investors to stick with him following a string of missteps. our guest covers sec regulatory for bloomberg news. of $10 billion client money. how long before this becomes a private office? >> well, mr. paulson has said he does not want to become a private office. i think he will do his best to make sure that does not happen. he has opened a couple new funds over the past couple years, getting more money into those, and then it won't happen, but i guess it really depends a lot, also come on how his drug stock this year. he is sticking with them even though they lost money last year. if he gets good games, people could come back in. scarlet: performance dictates everything. miles, i wonder if what
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benefits, if any, are there to having outside investors. miles: if drug stocks like turn around,do do a bigger chunk of the profits are going to go to replay to mr. paulson and employees of the firm, since they own so much of the funds now. julia: you just mentioned they opened a number of new funds. how much client money is in the new funds? have they managed to attract clients to the ones they are opening? and i guess beyond performance, is there anything else that could lure investors back here? miles: i think at the end of 2016, the 2 larger of the new funds -- most of that was still money that had come from mr. paulson and the firm, around 80%, 90%, as i remember, for his new long-short fund and strategic fund.
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there is a smaller fund he started up in the past couple years that is mostly outside money. i think the assets there are $100 million or so. performance,h coming up with an idea for strategy that no one else had done, may bring in some more assets. little bit more in specifics about the mistakes and missteps that paulson has taken to end up in a situation where client money has come out. miles: well, i think last year paulson basically runs merger arbitrage, and the merger arbitrage strategy, he uses a more expansive definition of merger arbitrage, which is historically simply betting on -- that a merger that has been announced will be completed in collecting the spread between what the target is trading at and what you are going to get when the deal is completed. his merger arbitrage strategy went a lot into acquisitive --
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acquiring stocks like endo, where they are buying a lot of other companies. and there you had big losses that you wouldn't have in a merger arbitrage fund usually. miles, great to chat with you, thank you for your insight. covers revelation for bloomberg news. scarlet: time for the biggest business stories in the news right now. the u.s. supreme court is curbing the sec's ability to collect illegal profits from individuals. the securities and exchange commission will have to comply with a five-year statute of limitations before collecting what is called disgorgement payments. the sec extracted almost $3 billion in these payments in 2016, double what it collected in other types of penalties. americans aren't buying fitbits the way they once used to. the device market plunged in the first quarter, according to data from the research firm idc. fitbit had 23% of the market a
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year ago that is now 12%. who is the leader? apple. it goes to just under 15%. $1 million is currently the highest bid in warren buffett's annual charity. 4 days still remain, and the winner will get to have lunch with buffett in new york city. last year the charity auction drew a record $3.4 million bid on the last day. proceeds go to a nonprofit which helps the homeless in san francisco. and that is your "business flash" update. apple'seeping an ion worldwide developers conference. apple announcing new tools for developers to integrate machine learning across their apps. of everything seen so far, the augmented reality is the biggest apple is offering, but the presentation is still going on. for more highlights, and ounces, and market reaction, t live go.
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from new york, this is bloomberg. ♪
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julia: this is "bloomberg markets." i am julia chatterley. scarlet: i am scarlet fu. now to one of the most widely read stories on bloomberg today, family,g the kushner the real estate committee, and its attempt to secure a loan to pay back chinese investors in a luxury tower. joining us as a commercial real estate reporter for bloomberg news. tell us more about this building and why banks in the united states are not so comfortable doing business with this company. did is a big luxury tower in new jersey, typically the type of thing that banks would love to finance, a relatively safe type of real estate. but given the controversy surrounding jared kushner, some of the big u.s. banks are
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worried that doing a deal with his family plus real estate company now would drop -- his family's real estate company right now would draw extra scrutiny from regulators. additionally, there is an ed5 component -- not sure i'll fill your people are -- scarlet: it is a visa program. sarah: it allows wealthy foreigners to get a green card by investing in u.s. projects. they would be using this loan in part to pay those investors and that adds an additional layer of controversy to the deal. julia: and lawmakers in washington have been calling on tighter restriction on these. donald trump extended it, didn't he? sarah: separate from anything involving kushner, the ed5 program on its own is controversial. julia: they fear for the big banks is they don't want to appear to be looking to pedal influence with someone closely attached to donald trump -- not sarah
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sarah: i don't know if it is so much pedal influence. they are under a lot of pressure from regulators could they don't want to draw any additional scrutiny. they say that there's a lot of noise around kushner, we don't know what the outcome is going 5. become there is ed do we need to do this deal right now? scarlet: we know that kushner has been talking to the russians , we don't know over what. what do we know about whether the kushner company will be able to get financing from alternative lenders, nonbanks? sarah: sure. so i think they will be able to secure financing for this project, because there was a whole host of regulars you private equity firms from hedge funds, who have entered into commercial real estate the past several years, and they don't have to worry about bank
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regulators. and they -- this is the type of deal that they might want to do. and then there is foreign banks -- they do not have the same concerns that u.s. banks do. julia: there is still criticisms of certain relationships, severed business relationships he has maintained. can you give clarity on whether or not he is still involved in this part of the business? sarah: real-estate business? julia: has he stepped away or is their lack of clarity? sarah: he stepped away -- he stepped away from the business. i can't say 100% how involved he is. not in the day-to-day running of the business, and he saw a lot of his assets to come in -- sold a lot of assets to family members. julia: it is a gray area. scarlet: speaking of family members can was in his sister -- sarah: sister was talking about
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the relationship -- well, she didn't talk about it but everyone knew about it. there was the implication that they were implying that there -- that their ties to trump would attract investors to the project. if you are a bank and concerned about regulators, you would just say definitely julia -- julia: are there opportunities elsewhere? mulholland, very diplomatic real estate reporter for bloomberg news. julia: we are at the apple worldwide developers conference.
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>> its 2 p.m. in new york, 12 p.m. in london. scarlet: welcome to bloomberg markets.
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julia: we are live and bloomberg world headquarters in new york. over the next hour, the top stories we are covering on the bloomberg and around the world. in markets, the etf market is shutting out funds. stay competitive in the aggressive fight for remaining market share. u.k. prime, and minister theresa may and her opponent jeremy corbyn are clashing over terror. what it means in the final stage of the campaign, coming up. apple ceo tim cook is expected to unveil a siri seeker. siri is getting smarter and new augmented reality features coming to the iphone and ipad. emily chang will sit down with an exclusive interview with apple ceo tim cook. at the apple developers
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conference in san jose, california, the tech giant making a series of announcements including an update to macbook air and a redesign of the app store. we are joined by cory johnson who is outside the conference. andill get to the macbook the app store, but i wanted to begin with the ipad. this is a software conference. they are touting software improvements. but there is some mention of hardware here. so some new ipads a been announced. two new ipads in particular. the team is still getting smaller, much better resolution. but it is very impressive what they are doing in terms of pushing the technology forward. also talking about software updates that could change the way the apps are working. to see moreg system apps and switch between the more quickly. it seems like geek type of stuff. but that is what this crowd wants. the developers that are here
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from 75 countries, give them a new way to develop around these devices. the iphone has struggled, something that apple could use improvement on. scarlet: will the new software do that? one of the criticisms is that people don't need to refresh it every two years. they can buy one and hold onto it for four years or five years. will the software update mean that people need to replace it? cory: perhaps. the biggest change is from no ipad to ipad or from flip phone to smartphone. is we have seen across apple and the entire industry is a longer cycle of upgrades whether it is phone, tablet, or pc. not running out and getting a new one every year. gene munster has done some polling suggesting the next iphone has a much bigger rate of
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people upgrading than the last release and it could be good news for apple this year. the ipad, there is really a demand, a use case issue. we are hoping to create that with new software. ,ulia: we were talking about earlier, this message that is signaled -- [indiscernible] there seems to be a lot of excitement about what has been come up with this year. apple has been hiring like crazy. one of the things they share off , they really drew some oohs and ah's. a development kit. something we will never use, but you can develop cool stuff happening in pokemon go. old at the phone and see stuff that is not actually there. as you move it around, it can react. that is hard to do. it takes a lot of programming
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ability to do that. the people that made pokemon go spent years working on this kind of stuff. apple has treated tips to plug and play and develop in a 3-d augmented environment. it makes it so much easier for developers. who knows what they will come up with? things that we see while we drive for games we play. or beyond that. but the ability to develop on that is what they are pushing in this room right now. thatan really get a sense people are being inspired by that ability with the notion they can do cool stuff like pokemon go without the pain those developers covered in the past. julia: makes total sense. talk about the redesign of the app store as well. we could be forgiven for overlooking this is something important, but there are thousands of developers out there. this is a real money thing. it is crucial. talk us through this. cory: it is massively important. there is an entire economy of people running businesses based
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on making apps and selling apps. getting them downloaded. making it to the top of the app store is everything to these developers. it will look a lot more like apple music. it will have multiple tabs. it will show stuff trending in terms of popularity and things the apple people want to go on top. the games the editors are playing and so on. this is usually development to developers. a want a better platform to sell and an easier way to sell. that is where the revenue comes from. a year ago, there was a big focus put on the by apple use of subscriptions. apple wants to use its business model more towards services. it will require these developers to have success on the app and have consecutive sales through subscription. a big deal for apple. they are pushing that more today as well. scarlet: was there any mention made of the new iphone? that is the big moneymaker for the company. i know it is a software developers conference and less
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focused on hardware. that comes later on in the year. but investors and apple fans are desperate and waiting for any kind of information on the new phone. specific information about a new phone, i have not seen a single mention whatsoever. not seen a single mention to it. understand that all of this ios 11 they are talking about is stuff that will work with the next phone. they want to run out of this room and start writing code that will use the all new features. i will say there was a little bit of talk about the dual camera functionality. the notion that maybe the new phones might all have dual cameras. -- it is an plus amazing thing they are using to cameras and software to give you a depth of field you would normally need a very high-powered lens to do. we might expect that to be the
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feature not just of the ad campaign, but maybe more expanded in more phones in the future. julia: the hints. we talked about what we heard already today. what about what we haven't heard about? what about the speaker? when will we hear about apples speaker? cory: we have not heard anything yet. i will not predict that we will. why bother? but listening to conversations today, thinking of the companies on the outside that have been ticked off that apple is encroaching on their territory. safari tors within prevent the tracking of users -- onee side to the next site to the next. users will like it and apple doesn't seem to care if a will tick off the ad community. multiple speakers in multiple rooms of your home.
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the folks at soto's will not be will to hear this -- sonos not be happy to hear this. they have to be worried about that. the different companies they are willing to go up against is really interesting. a look at innovation happening elsewhere. proving to be second ones and trying to outdo their competitors. julia: ruffling feathers is exactly what apple wants to do. scarlet: cory johnson at the apple worldwide developers conference in san jose, california. at 5 p.m. bloomberg eastern time. that is 10 p.m. in london. emily chang will be speaking exquisitely with tim cook. ceo of apple. julia: for the headlines, let's go to julie hyman. is notthe overall market moving much. apple shares themselves down about 1%. as you can see throughout the session, they have been in a pretty tight range. it doesn't look like we've seen reaction to specific headlines. that could change if the
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announcement of the speaker is made. but we have been talking about it already. it's not clear if that would be priced in. apple, unlike some of the large-cap tech peers like out for that and amazon, they are not at a record -- like out for amazon, they are not at a record. medical devices, including a wearable monitor for diabetics. apple will be pulling data from dexcom monitors. there was talk they might develop one themselves, but they will be using dexcom. spiking 4%. and watching paypal, apple talking about a peer-to-peer payment network similar, perhaps, to thevenmo or paypal. they have come off the high of the session but still hanging onto a game of .2%.
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even though apple is down today, they've had a monster year. it is up 56% and it did close at a record on may 12. it has had a very strong year despite some of the challenges that its critics have talked about. this is also reflected in the sheer bullishness of the stock. look at the anr function. all of this green, all of the by recommendations. middle,e in the neutrals. underperforming at the top in red. very bullish sentiment. the 12 month target price is 164.48. this is the gap between the present price of the target price which has been narrowing as the stock has been going up and up. i mentioned amazon and google. they are trading at records. something to notice about alphabet, the shares are about $1000 apiece. has joined it in
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the $1000 a share club. apple hasn't gotten to that level and we will see if it re-attains a record like some of its peers. scarlet: we will be on the watch out for apple perhaps one day 1k company.t one can han let's look at the headlines with mark crumpton. mark: metals barriers are going up on several london bridge is following the second terrorist attack using vehicles to target today streams. they are designed to stop copycat attacks of what british prime minister theresa may calls a new trend in terrorist tactics. authorities will not say how many bridges will get the extra players of security. president trump today unveiled his proposal to hand over control of the u.s. air traffic control system to a nonprofit corporation, fulfilling a long-standing wish of most airlines and calling the current
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system and antiquated wasteful mess. for his a weeklong push infrastructure plan designed to lower costs and improve efficiency of this system that overseas flights -- oversees fli ghts. thousands of managers and technical workers to a new government sanctioned corporation. mr. trump used blunt language to federal aviation administration, saying it wasted billions in technology and accusing it without offering proof of using equipment that dated back decades. the president criticized his own justice department over the dispute of his own travel ban. targeting six predominantly muslim nations. a supreme court will decide its fate. the president said the justice department should have stayed with the original ban and not a water down politically correct version. he also called the courts slow and political. moments when nikki haley
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addresses the u.n. human rights tomorrow. geneva she has previously called the council "so corrupt." nations onhaley said the council has poor human rights records themselves including cuba, china, and saudi arabia. mobile news 24 hours a day powered by more than 2700 overalists and analysts in 120 countries. i'm mark crumpton. this is bloomberg. julia: breaking news from the san jose, california. apple has decided to ruffle feathers and introduced a new smart home speaker. it is called, wait for it, home pod. scarlet: really? julia: it will be on sale later this year. it is called home pod. scarlet: a playoff of ipod. julia: i can't pretend to love it. [laughter]
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great. we will get more details from right afterith cory this. and of course, we will be speaking to tim cook later on as well. why home pod? scarlet: emily chang's interview with tim cook coming up. this is bloomberg. ♪
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scarlet: this is bloomberg markets. i'm scarlet fu. julia: i'm julia chatterley. now, a look at some of the biggest business stories in the news right now. amazon prime's video services coming to apple tv later this year according to reports. amazon had been a major holdout for the tech giant. apple introduced upgraded macs and preview the new imac pro at
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its worldwide developers conference in san jose, california. the conference runs through friday. u.s. arabt user when allies impose isolation measures next week. 76 flights will be grounded, 50 foo of which cap to airways -- qatar airways included. the united arab emirates and egypt are penalizing qatar for supporting islamic groups. oncology shares hit a new high this year, gaining more than 45%. this after the company's experimental cancer drug worked on a variety of tumors. the effectiveness of adults and children tested across 17 different types of cancer. for will seek fda approval the drug which targets genetic abnormality. that is your business flash update. apple has a new
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announcements. this just breaking. it has unveiled a new smart speaker that will be unveiled to the market later this year. it let's head to cory johnson who is in the field with the latest. i am looking at t live go. there is a picture of it. it's called home pod. it is under seven inches tall and covered in a mesh fabric. give his details on this new hardware product. cory: you just gave a lot of it right there. seven small tweeters on the inside of it and one giant woofer with an engine that sort of cranks out the sound. chip, theapple a8 same in the iphone or the ipad just for the speaker. is acoustical modeling. if you put it in the middle of yourhouse, at the edge of room, it will figure out the size of the room and adjust the
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sound and direct it for that room. the notion is that they are singing with the problem of the amazon echo is that the speaker --the problem with the sonos devices is they don't have the intelligence of this apple device. it looks like a groovy white cantaloupe or something. apple music with and ios devices. it will work with series a you can control it with your voice. on the leapfrogging shoulders of some of the developments of the amazon echo and google play. julia: talking about this in terms of keeping people within the apple ecosystem. musicks with an apple subscription. you can get the music directly from the cloud and it won't require any form of syncing with iphone which i think is probably a good thing. it is very interesting here. the notion that that is the case
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were you have to presume it, -- you have to control it, presumably, with siri. apple have always thought the users of one device will use another device. while recognizing that this is something that steve jobs was very slow to believe. people might use his device with other devices. the thing that ultimately catapulted apple to the biggest company in the world by market cap now was the decision to work with microsoft on the ipod. it opened up music devices and led to a lot of big changes. they say this has been years in development. the echo itself is not even years old yet. this is the culmination of everything done with apple tv and done with home. julia: we will be talking to you throughout the afternoon. it bloomberg's cory johnson reporting from san jose, california. tune in to bloomberg at 5 p.m.
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eastern time, 10 p.m. london for emily chang's exclusive interview with apple ceo tim cook. scarlet: and one thing that is interesting is apple stock has barely moved on all these announcements from the worldwide developers conference. julia: it takes people time to digest what the actual breakdown in details are. we will continue to talk about it. still ahead, today's options insight. , tradinglking kroger between $29 and $30 since march. more details next. from new york, this is bloomberg. ♪
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julia: this is bloomberg markets. scarlet: it is time for options insight with julie hyman. julie: joining me from the cbo for today's options insight, from bullseye option. allen, good to see you. ask you about oil
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today. that is something you mentioned in your notes today, that we have seen, traditionally, the oil and dollar going in opposite directions. that is not happening lately. what does that tell you? >> i'm not exactly sure what it means, but i'm looking for crude to find bottom. it's not been helped by the dollar at all. i have nothing bad to say about the market. i think we can get another catalyst or boost when crude oil starts going down. -- stops going down. it's only been a couple days and that overall trend is strong. it's been a little bit of a dragon it can be a catalyst and start to spark up. in terms of options activity, have you seen a pickup and bullish activity? i have seen place where people are looking to get into stocks at a lower level. looking at the options market in general, vix options last week
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had some really low-volume days. one day was 35% normal. today we are back to normal. even though the stock market continues to make new highs. but let's put it in perspective. the dow made all-time highs, which is good. 21%.ave the nasdaq 100 up the s&p is closing in on double digits. again, i am very positive. let's get's -- julie: year trade of the day. looking at kroger, a superlong play here. looking out to 2019 for this one. explain yourself, alan! the january 2018 option is only $100 cheaper. why not have the time in case you use it? the stock is going nowhere fast. i will talk about inflation. that is why the price is down your the low.
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inflation has been very subdued. it hurts margins and grocers. we are starting to see wage inflation and other obviously wealth effects of the stock market be in higher. kroger is a good risk reward play. looking at the 25 call for january 20 19, 1 year and seven months. if it can follow the pattern held by whole foods, we can see a significant move to $35 or $36 weekly. julie: we have to leave it there. back to you ladies. ahead, don't miss emily chang's exclusive interview with apple ceo tim cook at 5 p.m. eastern time. from new york, this is bloomberg. ♪
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mark: i'm mark crumpton, time for first word news. two of the three men suspected in this weakens terrorist attack has been identified. was reportedly known
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to authorities, but they say there was no evidence he was planning an attack. the second man identified was the-year-old rashiid redowan. police killed all three suspects at the scene. a decision by saudi arabia, egypt, and the united arab emirates to sever diplomatic ties with qatar should not have any impact on u.s. military operations. intro command says there is no plans to make changes. central command and its 10,000 american troops are based in qatar. the countries accused qatar of supporting terrorism. the supreme court struck down 28 districts in north carolina because they violated the rights of black voters. the ruling upheld the lower court decision and sent it back to that court. the justices stopped short of ordering the districts to be redrawn. the united nations conference


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