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tv   Whatd You Miss  Bloomberg  June 5, 2017 3:30pm-5:01pm EDT

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w as reportedly known 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. on united nations conference
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oceans has opened on an ominous note. secretary-general antonio guterres's the planets oceans are under threat as never before. he said plastic garbage in the waters could outweigh fish by 2050 if nothing is done. environmentalists and representatives from 200 countries are attending that five-day conference. global news 24 hours a day powered by more than 2700 and analysts in over 120 countries. i'm mark crumpton, this is bloomberg. ♪ julia: live from bloomberg world headquarters in new york, i'm julia chatterley. scarlet: i'm scarlet fu. joe: we are 30 minutes from the close of trading in the u.s.. julia: u.s. stocks fluctuating near records. joe: the question is, what did
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you miss? scarlet: executives announce a number of upgrades and overhauls including a new smart home speaker. called the home pod. the highlights coming up. a crucial week for president trump. rolling outuse is its infrastructure plan, but all eyes will be on former fbi director james comey and his testimony on thursday. we set up the week in politics. for arab nations cut rolling out its diplomatic and tha economic ties with qatar. we will dig into whatsit stake with the sovereign fund and countries that look to it for funding. great show coming up. it lets get a look at where the major averages stand as we head towards the close. abigail doolittle is standing by. abigail: we are looking at very small declines for the averages heading to the close. nasdaq, s&p 500, and down fractionally. these losses might be very small
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but we can see them flip to the green by the close and it would be a new record round for the major averages. the nasdaq earlier today did put in an all-time high. at tech names are carving out highs including microsoft, amazon, alphabet, and nvidia. one stock notably off the board's apple. if we look at an intraday chart, the shares are down about 1% on the day. really range bound here. not a lot of movement as the worldwide development conference does get underway. the faster mac, and upgraded ipad. we also have a newly developed or completely refurbished app store. and that home plot you were talking about, then is part -- the new smart speakers. in terms of the overall movement relative to products, let's hop to the bloomberg and take a look as to why that matters.
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#btv 8524. phone contribution to revenue. and in yellow, we have the ipad revenue. the iphone had been increasing, declining, and in blue, services. off of those comes all-time highs in terms of revenue contribution, needing to be picked up by services. all of these new developments, julia, round out apple products. a lot going on there for apple, julia. lots of good stuff. julia: we will dig into the details. the worldwide developers conference just wrapping up. the company unveiling a home pot speaker as abigail mentioned. taking on amazon and google in the voice controlled speaker field. this is their first major new hardware product since the apple .atch released in 2015
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let's go to cory johnson the conference in san jose. it's like they are doubling down on this with the price tag. it is pretty steep relative to competitors. cory: it depends on how you define competitors. apple says they are in their own category, both a high-quality speaker that you might get from --it is also the smart device, like amazon echo. you can get it all in one space. the notion that you can put it together and make two products is what they are trying to sell here. it they are trying to sell to the developers. they are leaving the convention center, 2.5 hours of listening to hardware and software announcements. software -- hardware makes headlines. new ipad, new macbook, and this new speaker. and also, really interesting software changes to make it work
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together. scarlet: apple can't get away from the hardware where it made its name. i wonder, when you look at the headlines, home blog will work with an apple music's scripture and to get music directly from -- subscription to get music directly from the cloud. apple seems to be moving away from the hardware. cory: ultimately, for this business to grow, it has to add something that is so much bigger . at what we saw with the ipad was something with a faster adaption rate. but it really petered out. the problem is the iphone itself , what could be bigger or grow a lot will be the services on top of that. the question is, how open do they make the system? podon't know if this home will work with spotify or other speakers set up in the home. these are the questions that will matter to users. it might be a cool device by itself. with otherthese
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companies. interesting to see amazon and jeff bezos standing in the shadows across this thing. announcing apple tv will be able to get amazon prime video, suggesting they might have settled their long-running dispute. amazon refused to sell apple tv devices on the amazon site. jeff bezos saying my customers would expect amazon prime would work with it so they would not sell it. we will see if apple tv shows up on the amazon website. and amazon in the back over the speaker announcements. the announcements of crummy retail sales, amazon looming large in that category. so really, amazon is really the stocking horse here. is 179: amazon echo dollars and the home pod will cost $349. an excuse do not miss
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of interview with apple ceo tim cook. we will be discussing the home pod among other issues with emily chang coming up at 5:30 p.m. new york time. did you miss? president trump will not use executive privilege to block fired fbi director james comey from testifying. he will get his chance to talk about his private conversations with the president before the u.s. senate intelligence committee in an open session. for more on this, let's bring in bloomberg's national political reporter from capitol hill. -- itmises to be a very promises to be a very busy week from the comey event. it has already been a huge week .o far he was quiet for a while and then last night and today, really going back at it again, bringing himself to the center of attention. i think the president pots tweet storm this morning, there was a lot to unpack in that. legal experts, including george
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conway, kellyanne conway's husband suggested that it undermines his own immigration travel ban to say things like that. to call it a travel ban let me white house is arguing that it's not. -- when the white house is arguing that it's not. in the wake of the terrorist attack in london. this comes after an important week, and infrastructure plan that is overshadowed by stuff. it you mentioned the james comey hearing on thursday. them across want to get to the bottom of what trump told him in those private conversations. if he did encourage him to squelch the investigation into michael flynn. president trump asked him for loyalty. scarlet: i wonder with james comey's testimony coming up, is this delay and or gumming up the
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expected staff changes that we ing or laying --d delay gumming up the expected staff changes? this person potentially leaving or that person potentially leaving, we know the communications director left last week. that was a major shift. in terms of potential other white house shifts, i don't know that the events have much to do with them. i think it has to do more with the way the president is happy with the way things are going at the white house. we focused a bit on infrastructure because there were questions asked about the likelihood of any kind of deal being funded appropriately. it passes through the senate, not get dones this year, then in 2018. what is the feedback on what has been announced? part of what has been
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announced as the president wants to privatize the air traffic control system. it is based on a bill that the republican chairman has proposed. there is republican support for that. that idea andse democrats are key for president trump if they want to get anything through. president trump also wants to get to a place where he can put a lot of money in infrastructure. supports do not want to this part of the plan. anding something forward kind of going with what seems to be the low hanging fruit in terms of his own party. joe: bloomberg's national political reporter. thank you very much. julia: seems like a regular theme. to theection news going final stages as voters head to the polls on thursday. george joins us to discuss the latest terror attacks and what it means for the campaign. and how the results will impact
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the country's economic prospects. from new york, this is bloomberg. ♪
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joe: coming up on bloomberg technology, an exclusive interview with apple ceo tim cook. you will get his thoughts on everything from the products they revealed to his thoughts on the trump administration. stay tuned for that interview at 5 p.m. eastern. scarlet: it is time for the bloomberg business flash, a look at some of the biggest business stories in the news right now. manager raydge fund dalio not is bullish on president trump as he once was. he sees the president move toward conflict rather than cooperation, the more he worries about the presidency. dalia was the founder of
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bridgewater associates that manages $150 billion. qatar airways could be the biggest loser when arab allies propose isolation measures next week. 76 faisal be grounded, 52 of which qatar airways controls. saudi arabia, bahrain, the united arab emirates, and egypt penalizing qatar for supporting islamic groups. harvard university has withdrawn 10 acceptances for "offensive facebook posts." sharing means about holocausts in the private message group. harvard says they do not publicly comment on admission status. and that is bluebird business flash. julia: prime minister theresa may remains the most likely outcome of the u.k. election even though the lead is narrowing. after the terror attacks, there was an official pause in campaigning.
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bloomberg be #-- you see the white line is the composite of the u.k. general election. if you look at the blueline that represents the labour party, what you can see below in the green is the relative spread that is going on there. we talked about this last week as well. the real story is the gains we have seen since the election was announced from the labour party. perhaps rather than the conservative party. what we have seen in the past is that you see a draw to the dealbent president as they and talk about the need for more national security. the author and who joins us from london. thank you for joining. it is clearly a very difficult
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time for the u.k. in light of what happened in the last four or five weeks and the attacks we have seen. how do you see this playing into the election this week, if at all? >> you mean the impact on the economy? is that what you are referring to? impact on the economy, but also voter sentiment. does this drive voter sentiment? play intoes that negotiations over brexit going forward? >> i think during the last whatever it is, three days before the vote on thursday -- it is possible that the most immediate or the very last swayk that we had, it may opinion in ways that haven't yet shown up in the opinion polls that have come out. up to and including yesterday.
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we don't know. there is one other poll out today that is the outlier amongst the nine or 10 polling organizations which regularly publish information. it suggests the conservative party might actually be short of an overall majority in the house of commons in the parliament by about 20 odd seats. as thetom line, really, package and chart made clear, there has clearly been, during the last two weeks, a shift towards popular support for labor. but not so much that it is actually completely overtaking the lead the conservative party has. most polls still suggest that the conservative party is on course to win the election with a majority of seats in the parliament.
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but how big that majority is, nobody really knows. there is a magic number, below which the prime minister's personal position could be very tricky. it might spell the end of her tenure, but we will have to see what happens at the end of the week. joe: why don't you tell us what your magic number is? and if you fall below it, what does it for them greg at whatiations going or -- does it mean for brexit negotiations going forward? mr. magnus: when the campaign started, people were talking about the conservative party getting a majority of 100 seats, maybe more than 100 seats majority. -- i think the market haven't checked today. i think the market is somewhere between 30 and 80. if theresa may gets less than 50 45, imajority, less than
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think that will be quite a difficult thing for the party to swallow. it doesn't mean the government is unstable, i just think that her longevity -- there may be a question about how long she stays as prime minister? . brexit negotiations will get cracking very quickly after the election. what has been going on here will not be lost on the negotiating partners in the eu. a particularly strong position before the election, i don't think we will have a particularly strong position afterwards. the government will have its work cut out trying to get a deal that is acceptable to its own party. the people of the united kingdom. george, you said from an economic perspective that election is timed
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to perfection. is that the case? mr. magnus: it was timed to perfection in the sense that the look to be peaking i think that has been borne out by some of the data we have been getting. we had first quarter gdp numbers which were rather anemic. they be the worst in the al whole of the eu. we have other information that is not really in the mainstream of regularly published data that indicates constraints for consumer credit. it indicates constraints for consumer spending. rising inflation is cramping a very stagnant -- crimping very stagnant wages. it doesn't look dire. if the u.s. and eu economies now,going the way they are we will be ok for a little while. but we are very dependent on what happens to you, to the eu. the brexit process itself is a
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corrosive drag. it is a glacial phenomenon but it is corrosive on the british economy. scarlet: george magnus will be sticking with us and discussing china, whether the country is headed toward a banking crisis. from new york, this is bloomberg. ♪
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scarlet: what did you miss yeah ? china risks harming its banking system. still with us is george magnus. china watchers have been warning about the dead burden for years -- the debt burden for years. you say china is that is funded. china's debt is funded. mr. magnus: can it get much bigger?
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or what level does gdp become critical? these things don't basically spell crisis. particularly not in a state owned banking system where bad loans can be extended. it they can be evergreen. the accounting regulations can be very opaque. so that bad debt doesn't necessarily have to be recognized or accounted for. so on and so forth. if you think back to the crisis that we had in the u.s. and u.k. 2008,rope in 2007 and basically, what precipitated the crisis wasn't necessarily the debt stock itself, but the banks suddenly dried up. we had leverage structures that would put in place and we had asset structures that people owned that suddenly became liquid. and when people lost confidence, the banks went liquid when everybody started selling.
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the china situation is not the similar. it is subprime in 2006, but fast-forward 11 years and here we are. the funding structure of the assets that make up, on the other side of the balance sheet, the debt of china's corporations and the quasi-fiscal agents. the funding structure has become progressively more risky and short. there is kind of a process there that, i think, and less than a couple of years, could become very critical. we will have to leave it there. it george magnus, associate at the china oxford cen university. julia: here are the major averages, just tilting to the downside here.
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don't miss inexpensive interview with apple ceo tim cook coming up on bloomberg technology. that is at 5 p.m. eastern. from new york, this is bloomberg. ♪
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>> what you miss? u.s. stocks closing mixed. little reaction to diplomatic tensions in the middle east and the terror attacks in london. i am julia chatterley. scarlett: i am scarlet fu. joe: i am joe weisenthal. thanks for tuning in on twitter. we want to welcome you to our everyg bell coverage afternoon on twitter. scarlett: stocks not making much of the move today after closing at record highs. by 10sdaq moving south points. in terms of individual movers, that is where we are going to go because it's more interesting there. we begin with para go. because it isded facing structural headwinds from erosion pricing and market share pressures. para go down by 2%.
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staying with health care mallon cropped down by better than 5%. and buffalo wild wings, the shakeup will not be enough to shake it out of its funk. the ceo announced plans to step down because there was a feud between management and activist investors. and of course we need to mention apple shares. apple is a lag are today. this is the worst day since may 17. nevertheless, the announcement made at the conference boosted a medical device maker, it's best day since march 24. investors bidding it up. appleypal up .5% because announced enhancements to the iphone operating system that integration of iphone
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pay. as a reminder, do not miss the exclusive interview we have coming up with apple ceo tim cook at 5:00 p.m. on bloomberg technology. chang and cook coming up at 5:00 p.m. joe: not a one of action on the yields. at 2.1 8%.- 10 year hovering for the lowest levels of the year. levels right at we saw -- what we saw a right after the election. niceo's two-year had very gains after an election. i am sure julia is about to talk about the peso. interesting day overall. minor losses on the aussie, but the dollar index is overall lower, and it is exactly what joel was saying -- joe was
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saying. -- weekendakened election with the ruling party defeating the far left candidate's party. .hat was a huge concern what we are seeing is optimism that perhaps the ruling party can continue to make gains. the peso is the highest it has been since the u.s. election. some losses were reversed and are now moving the other way. raising some of the overnight losses we saw since the london terror attack's. we are four days out from the london election -- u.k. election. on commodities, not a ton of action. crude oil had been higher
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following the news out of qatar. ultimately, not much connection. gold rising a little bit. and a quick look at one month of oil because this sort of puts the move.ective earlier in may, oil had broken back 50. there continue to be concerns about supply and that is keeping oil prices depressed. that is today's market minute. scarlet: let's take a deep dive into the bloomberg. i wanted to start with the feds do a mandate. let's focus on inflation. the fed has been targeting 2% for forever. under janet yellen it just can't get there. this is what the fed likes to use to determine inflation. in the greens -- under greenspan, in the green
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section, it averaged 2.5%. was onen bernanke, it point 9%. the last section is janet yellen, an average of 1.1 percent. that would make yellen the only fed chair in three decades not sustained inflation close to the fed's goal, which is remarkable when you consider that she came in saying she would let inflation run hot to get more out of the labor market. joe: why is janet yellen so hawkish? [laughter] , the inflationy side is the fed focus. what about the labor market? this summer, american teenagers should find it easier to get a job. rates a 27% unemployment in 2009.
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what if they are not looking for a job? the overall participation rate, the white line, sitting around 62.7 percent. the blue line shows you the foricipation rate teenagers. now, the bls thinks the participation rate is going to go below 27% in 2024. scarlet and i were talking about this earlier. out byy being crowded those over 65? there are more seniors working then in 50 years. immigration? an interesting study about enrollment in college, of course, and education. two out of five have enrolled in school in july last year. that's four times the level from 1985. so, it's not all bad.
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people debate cyclical versus structural. there may be structural changes in cultural expectations as well. it's a busy week for central banks. the big one will be the ecb next thursday and the fed next week. for more, let's bring in bloomberg's executive editor of global economics. thanks for joining us. right to thecut chase. going into this year, it looks like the story was going to be yields higher, inflation starting to get traction. as all these set troll -- look atbanks start to the economy, this story is in as good as it seemed a few months ago. you look at the global economy, that is sound. but the lecture is being muddied
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a bit by things folks hadn't anticipated. first, the global picture looks get. what is happening is that the push toward full employment is not coming with the spark in inflation that all historical models tell us should be happening by now. that phillips curve should start soon, but it's not. it close, in the fed case, two points and -- 2%. we showed that chart with janet yellen at 1.1%. at the, but if you look direction, we didn't come up to that level, just touched it, and -- we did come up to that level, just touched it, and now we are back again. growth isozone, looking relatively good. that's something mario draghi will have to grapple with on thursday. pmi has great
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momentum. manufacturing services and the composite all in the right direction. julia: when mario draghi comes out on thursday, is he going to adjust the language and take the downside tilt risk out? couple ofe next months, they have to figure out what their exit strategy is and articulate that. in inflationllback has taken some of the heat off .he ecb the meeting in estonia on thursday -- every so often they meet in frankfurt. look not for a commitment to tapering, but some sort of tweaks to the language. do we really think the balance of risk in the eurozone is to the downside? it seems like there has to be modulation. ecb on thursday, but before then, the reserve bank of
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australia meeting later today. far ish target rate so 1%, and the cash rate futures have been moving. >> we are looking at the same phenomenon there. inflation is not catching fire in australia. it's important talk about the background of the new governor. roger wicker.. paul krugman was one of his thesis supervisors. long before he became governor, he was thinking about the impact on the australian economy of a long span of low inflation. that partly gives you some context that the rba may cut this year, not raise, but cut. joe: we will be watching that. see somece to
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divergence in central bank activity -- may be. coming up, apple unveils its first new hardware product since 2015, the home pod. we get the latest details from the worldwide developers conference. reminder, tune in today to bloomberg technology. emily chang will sit down with tim cook for an exclusive conversation about everything from technology to politics. ♪
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mark: i am mark crumpton. it is time for first word news. the white house said today president trump will not use executive privilege to stop former fbi director james comey from testifying before the
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senate. there was speculation the privilege from -- to prevent mr. from providing potentially damaging testimony. >> in order to facilitate a swift and thorough examination s sought by the senate intelligence committee, president trump will not exert executive privilege. scheduleder comey is sa -- mr. comey is scheduled to appear before the committee on thursday. the mayor of london let a vigil to honor the victims of this weekend's attack. his message to londoners was to be, and. two attackers have been identified by authorities. the attackers were killed by police. meantime, concrete and metal
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barriers are going up on several london bridges following this second terrorist attack using vehicles to target pedestrians. they are designed to stop and what prime minister theresa may a new trend in terrorist tactics. authorities say a disgruntled employee opened fire this morning inside a florida awning factory, killing five workers before killing himself. the orange county sheriff described the shooter as a 45-year-old man who had been fired in april and was previously accused of assaulting a coworker. he added the attacker was not believed to be a member of any kind of subversive or terrorist organization. , the newkorea president is proposing a plan to increase jobs. the finance ministers says much of the money will be used to
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create 86,000 jobs, 71 thousand of them in the public sector. the proposal faces opposition in the parliament. global news 24 hours a day powered by more than 2700 journalists and analysts in over 170 countries. apple's worldwide conference just wrapped up. on the first day of the conference, the company has already announced new macbooks and imax, an overhaul of the watch, and a new home pod. for all that's going on in san jose, let's bring in cory johnson. he is live at the conference. everything that was announced today -- what do you think is the most exciting and the most pivotal to apple's performance going forward? >> you know, it's interesting. run, what ise long most important is not the new
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speakers or updates, but the integration of apple software into other applications. in asia, china, hong kong, all devices,e-commerce and all kinds of usage of apps, messenger, we chat, apple and facebook have both been trying to copy that and find a way to interact with new messaging. by opening up siri to other app developers, the possibility is they will be more useful to those developers. on the backend may be more useful to developers and as a result, they can create things on apple products that are not possible anywhere else. reaction today pretty muted. stocks down about 1%. they didn't unveil the kind of stuff that really gets people excited. long-term,ture,
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could some of these things so the seeds of big business in the future? >> i would watch the trading of the stock over the next few quarters. we have an announcement that new untilren't coming december. it's really hard to read in today's announcement of what is going to shift, but surely it is going to slow down sales in the near term of hardware products like the ipad and some of the macs out there. but yes, over the long run, fundamentally, they have to get developers developing. they have to get them writing software that gets people excited to use these devices in the wild. some of these changes in the app store and some changes in the way they write code could do that. scarlet: cory johnson was out in the wild himself joining us from
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san jose. now, our bloomberg columnist a new piece called apple is great at gadgets but missing the future. i want to pick up on something cory mentioned, the integration of software is exciting. but he talked about how in asia, we chat has really taken off. that is what apple doesn't do and hasn't been able to do well. by hows struck today much the conference focused on the present and not to the future. facebook and google both had developer events earlier this spring. again, it was about getting people in the future excited about what could happen. apple was kind of nowhere in areas like artificial intelligence. although they talked about new technologies that could be the future of driverless cars, drones, and things that can think and talk for themselves. pretty strongd
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language here. you talked about the stupidity of siri. you are not holding back. that you also say that apple gets it. because they are building the ecosystem that gets customers buildd and then they can the future. >> apple has always been rather secretive about what its roadmap is. the hurdle of being secretive is people cannot see what apple is working on in the future, and that makes it hard to get excited about what apple may or may not have in its roadmap. but you are right. refining the at ecosystem and making their devices work closely together. much, i was struck by how they talked about how well the speakers work with apple music. most people do not subscribe to apple music, but that's how they talked about it. but if you don't know
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what it's coming, you can't yet be disappointed. joe: it's kind of the legacy of steve jobs vision. everything he released was beautiful from day one. you look at the release of the first phones or first kindle. kind of cheap looking plastic. apple has never done it that way. do beta,apple doesn't basically. if you look at the first iphone and today's, it would look crude by comparison. but apple doesn't function like a software company. the idea of software today is he released the minimum viable product and see how it works. apple doesn't do that, and that could be a hindrance to the software of the future. mentioned $11 billion last year spent on technology. to you for your
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great column. exclusives our interview with apple ceo tim cook at 5:00 eastern. lots to talk about. home pod, politics, tech trends, all of the above. joe: coming up, i talked to a multiple world series of poker champion about what he has learned about risk management and what lessons can be brought from the poker table to the trading floor. this is bloomberg. ♪
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joe: the annual world series of poker is underway. i had a chance to talk to the winner of 14 world series of poker bracelets. , he talkedussion
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about his approach to risk management. >> a lot of the guys that have been around forever both in your somebody like a warren buffett, all share the same thing, and that is not to onk to much of their money any given day. that's something i have been made fun of her criticized in the poker world, especially by people who do not understand. because i wouldn't risk a higher percentage of my net worth, choosing instead to be staked. it's interesting because his nickname is the poker brat and his reputation is berating other people at the table. approach, he is actually one of the most disciplined players. scarlet: so, it's not random, but he subscribes to rules.
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joe: there he disciplined. very disciplined. we also talked about this. >> i am probably more conservative than that. a longunderstood for time -- i was married. i have been married and i have kids. my sons are now 26 and 23. if i made one bad decision at the table, it could really affect my life. so, there you go. despite his reputation, he was extremely disciplined. not only with bets, but he would also talk about how he would take investors to fund his tournament so he wouldn't have to pay the full entry fee. scarlet: you can find joe's
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on the bloomberg. but this was the most highly rated podcast ever? joe: that's what i hear, among users, the biggest hit ever. scarlet: biggest hit ever. a poker legend has a device trader should hear. next, more states are cutting off diplomatic ties with qatar, accusing the state of meddling with affairs and backing terrorism. we take a look at the political ramifications next. this is bloomberg. ♪
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mark: president trump today made the case for privatizing the nation's air traffic control system. the president said the overhaul would improve customer service wait times,cost, and technology. the president said during a white house announcement that the current system is stuck painfully in the past. he added today we are proposing to take american air travel into the future, finally. men suspectedee in this weekend's terror attack ve been identified. one of them was reportedly known
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to authorities, but they say there was no evidence he was planning an attack. was identified. authorities are working to identify the third man. at thekilled all three scene. the u.s. supreme court has agreed to take up a major digital privacy issue that will consider whether police need a warrant to review records from cell phone towers. law enforcement often uses cell phone records to track suspects. they have been accused of violating digital privacy rights. good news in the battle against breast cancer. women with the most aggressive kind of cancer are living longer. is five-year survival rate 36%. in the early 1990's, that figure was 18%. global news 24 hours a day
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powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. scarlet: let's get a recap on today's market action, or perhaps lack of action is a better way to put it. all three indexes retreating from record highs but barely moving when it comes down to it. the nasdaq down by 10 points. you as we have been telling all day, emily chang sat down exclusively with apple ceo tim cook. don't miss that interview coming up at 5:00 p.m. julia: escalating tensions over ran are coming to a head -- over in thee coming to a head u.s. plus arab allies. >> a dramatic few hours as saudi
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arabia, the united arab emirates, egypt and the rain cut off diplomatic ties with qatar. this comes in response to what the saudi's have maintained is a the of conviction from qatari fund when it comes to the global fight on terror. they are urging reconciliation with iran. -- qatarcooperation responded, saying the gulf cooperation moves are without basis and they will respond accordingly. this move is unprecedented for this part of the world. the best way to compare it is a country like germany within a closely integrated community like the european union making a move like this on a neighbor like italy or spain. as a result, dramatic moves in the asset classes. also, wti coming into the
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spotlight with a fundamental role it plays not just in opec but as a supplier for lng. there is a human component to this story. qatari embassyhe have been asked to leave within 14 days from the uae. scarlet: for more on the political ramifications let's bring in a columnist for bloomberg gadfly. he joins us by phone. we talked about cutting off diplomatic ties. i wonder about financial ties. we talked about how qatar is a wealthy country and its sovereign wealth fund, it's royal family has funded a lot of different business is around the world. ask us through what you see some of the potential hotspots.
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>> in the same way that it diplomatically qatar really punches above its weight, financially, on the global stage, it does, too. it invests across the world. over the past decade, every time there has been a crisis in europe, especially whether it is or, forncial crisis example in the u.k. after brexit, qatari money has been seen as accessible and ready. they have huge swaths of assets finance,, real estate, stocks. even if two days -- today's news means there needs to be fire sales, i think it is a big enough political question to be back on the table. scarlet: right, it's a problem down the road. we saw knee-jerk reactions with
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qatari sovereign funds dropping in price. you see there the leg lower in the bond price following this announcement. joe: and as you are pointing out, qatar's sovereign wealth fund is a big investor in a lot of european banks. europe was closed today. when people come in tomorrow and start to trade, do you think this will be top of mind for them? >> it's a good question. i'm not sure. i don't inc. so. so.hink today, there was a lot of uncertainty about what this meant. the market reaction on oil has called down a bit. a lot of these assets are liquid. a lot of the money from qatar comes from both the sate -- state but also private individuals in the royal family.
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i think the question for governments in europe is going to be more, what do my own voters think of this? the timing of this is very potent. that's the issue. julia: i want to ask you about the timing. it follows donald trump's visit to saudi arabia. can we take a step back and see some kind of positive here, and that is better coordination between large countries like the united states and other large countries like saudi arabia and uae? it, isake qatar out of the coordination between major power players and the middle east and the west actually going to be beneficial for infrastructure or other things? >> good question. is unprecedented. the deep conflict behind it has been brewing for decades. in terms of the way qatar is essentially forced to play a
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powerbroker and middleman like iran andors sunni, anti-iran allies. it is certainly possible there could be a positive coordination step, but in terms of the rhetoric being employed right if, it doesn't seem as politics are going to change easily. outraged.d genuinely i would just say that all, there moree potential for instability. we mentioned the human toll and security issues, even the world cup, soft power issues. scarlet: thank you. up, as italy faces
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serious economic challenges, the country gets closer to a potential election in the fall. will this help with reform? we will talk about that next. this is bloomberg. ♪
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joe: what did you miss? political risk hasn't gone away post french election. italy's main political parties agreement on an new electoral law that could pave the way to an early election in the fall. for more, let's bring in a professor from the london school of economics and political science.
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italy is the last big political risk standing out there in this cycle which started last year in went into this year. what are the prospects for an antiestablishment party to really disrupt things for the italian government? been you said, there has the fourent among major parties for a change in the electoral rules. it won't address the fundamental they may not be able these elections. there is a small chance that the antiestablishment, anti-euro parties will join together after the election and form a government. it's a small probability, but it's not zero. terms of the timing
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of the election, an early thetion would coincide with budget and possible tapering of the european bank. does that create a political risk, and if so what kind, for the rest of the eurozone? are right, there is some kind of trade-off for early elections. that by words, suppose the beginning of july, the parliamentary process for approving the new electoral law is finished. then you have to decide whether to go for the budget, which typically is in october, or early elections. on the other hand, if you decide a go for the budget, it's rather unlikely that italy will have a chance to go for the
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election. the election will happen at the political term. julia: what is the probability, in your mind, that we do see the firsttions, point, and my second question, attached to that, is if we do see early elections, is this a blatant attempt by matteo renzi to get back into power at the hopes he hadl the over electoral reform, which resulted in him stepping down? >> clearly, italy went into a mess with the referendum at the end of last year. election reform was doable and feasible. fixing thatty is problem, which is positive. it is not necessarily true that law,you have an electoral
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you have to go for elections immediately. presidento allow the of the republic to call for early elections. having said that, my personal would bes that there uncertainty anyway, because situation, the political situation is not settled. government might not even have a majority in the senate right now. we havenk the sooner elections, probably the better. let's say you are correct in the five-star movement decide they are not going to form any coalition. we get an election in the autumn. we see the democratic party coa.
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in parliament. is the prospect for reform in italy greater under that scenario than it is currently? know, italy doesn't really have a great tradition of grand coalitions. usually they don't work. , you havet this stage a country that is roughly split in three equal parts. either you have an electoral system like in france where only 23% of the votes was able to have a two thirds majority on the second ballot, but in italy it's not possible because they have ruled unconstitutional. you only have one solution, which is a grand coalition. i think it's probably not ideal.
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they can actually deliver this and reforms if done properly. professor at the london school of economics and political science. thank you. the government currently running italy is the 66th government in italy is january of 1946. just a bit of perspective. ifrlet: the issue is also italy becomes like spain where there is no rand coalition, no party in control, there is no to speak forble france and germany start to rewrite the rules. julia: up next, here with jamie dimon had to say about trumps trade negotiations.
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in less thanng up 15 minutes, bloomberg technology with an exclusive interview with apple ceo tim cook. everythingughts on from new technology to the trump administration and the tech sector. stay tuned for the conversation coming up at 5:00 p.m. eastern. in a bloomberg exclusive, heorgan ceo jamie dimon says has faith in the trump administration's trade negotiations with china. he sat down at the china summit in beijing. >> i was in favor of tpp. i hope it may come back in some form or fashion. what i am very comforted by the fact that wilbur ross is we speak, trade
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negotiations with china. if they want to do something with nafta, i would love to do something with that. we have wonderful, peaceful neighbors in mexico and canada. things that are unfair on trade, we will deal with them. .et's be a little fairer i am for free and fair trade, and sometimes it isn't there. craig said the united states take part -- >> should the united states take part in the agreement china is pushing forward? they are properly structured, properly govern, helping nations develop and regions develop is a good thing. if it's done well, i would participate. the u.s. benefits and china is interested, we both do well. we don't need to look at it as a
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zero game. >> how do you see the u.s. economy right now? i know revenues are taking a dip. it's a two-part question. let's talk about the economy first. like a weapon. it goes up and down and you can't predict it. i don't spend much time doing that. over 20 years, it's going to go up because the financial standing of the world is going to go up. next week or next month, i couldn't possibly tell you. economies are chugging along just under 2% growth rate. a long recovery is a weak recovery. inre is no great weak spot the american economy. i think if we make wise policy decisions on corporate tax, infrastructure, regulatory reform and other things, i think
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it will grow the economy more. i wrote about it. i don't think we are relegated to slow growth forever. >> what needs to be done in the united states? >> we haven't built a bridge in new york city in like 50 years. i just came from hong kong. it's embarrassing. america should get back to building and constructing. it's permitting, rules, requirements. we need to hold infrastructure in our country, and we are getting behind, and it damages growth. jamie dimon was against the trump administration's decision to exit the paris accord. here is what he had to say about that. >> i would have preferred staying in. it's not just technology in
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climate change and having governments agree, but technology. someone wrote a great article saying the real way to do it is a carbon tax. we are in favor of trying to control carbon. you are in it to show collaborating. collaboration is a good thing between nations, not a bad thing. obviously, the trump administration felt differently. we wish they would have stayed in. >> what is your view on staying in the business advisory council question mark you will stay on? wake yes. i am an american patriot. the president of the united states. it is very hard to say i am going to go off and advisory
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group because you disagree on one issue. overreact.t to >> how much did you lobby him? >> we signed letters with a bunch of ceos. the business roundtable made it very clear what they preferred. he chose differently. that's his prerogative. that was j.p. morgan chase ceo jamie dimon speaking exclusively with bloomberg's stephen engle. it's interesting, isn't it? some of these guys argue that it isn't about president trump. it's about america. scarlet: we have some breaking news. june brett has joined j.crew. held, andprivately
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not publicly traded. mickey drexler will continue in his role as chairman, but jim brett will now be taking over as ceo of j.crew. joe: coming up, what you need to know for tomorrow's trading day. this is bloomberg.
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scarlet: don't miss it. at the top of the next hour, emily chang will be speaking exclusively with tim cook at 5:00 p.m. joe: and the reserve bank of announces its rate decisions tonight. you can be sure i will be staying up for that. miss the gm shareholders meeting in detroit starting at 9:30 a.m. eastern. i will be awake for that. scarlet: that doesn't for us. julia: bloomberg technology is up next. ♪
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alisa: i am alisa parenti from washington and you are watching "bloomberg technology." let's start with a check of your first word news. there has been speculation president trump waned vote executive -- would invoke executive privilege to prevent
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james comey from providing potentially damaging testimony. here is sarah huckabee sanders. >> the president's power to exert executive privilege is well-established. swifter to facilitate a examination of the facts, president trump will not exert executive privilege regarding james comey's scheduled testimony. alisa: he is scheduled to appear before the senate intelligence committee thursday. president trump today made the case for privatizing the air traffic control system. he says it would improve customer service by reducing costs, wait times, and technology. trumps current systems -- says the current system is stuck painfully in the past. 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 cellphone towers. law


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