Skip to main content

tv   Bloomberg Markets Americas  Bloomberg  June 6, 2017 2:00pm-3:31pm EDT

2:00 pm
scarlet: we are life and bloomberg world headquarters in new york. here the top stories we are covering from around the world and on the bloomberg. and markets, geopolitical risks on the horizon sending investors fleeing to safety. the upcoming super thursday of the u.k. election and ecb to -- decision and fbi director who was fired, james comey, is in the gold in treasuries to the highest levels in months. u.s. and mexico nearing a deal over sugar. an agreement between the two countries could set the stage for the white house is off to renegotiating nafta. in corporate news, tech companies joining the global -- howand cook called -- told they're working with the u.k. government to fight terror. u.s. markets close in two hours time. let's check or stocks are trading. the answer is -- auto companies
2:01 pm
are moving. >> auto companies and is -- consumer discretionary stocks outright down major averages. the tight range we are seeing -- is install. stocks of now gone into this. this is following the record closes we saw last week. indeed, automakers are falling mostly, with the exception of tesla. tesla and general motors both holding their annual meetings today. june shareholders sided with fresh project about her from david einhorn to split the company stock. that's something his push for recently. he was not successful in that. downs expected shares seven-tens of 1%. even as tesla has been rising -- for what it is worth, analysts -- consumer adjective tesla the highest price target on the street this morning, $385 a share. we have been watching this -- what are the other things that might have affected them -- the monthly black buck price report
2:02 pm
coming out. among other things, it said every category of car had a rvse drop last month treat fared better. in addition to that -- one company beating estimates both on the company and top line. it is surging by 11%, competitor winnebago also trading higher today. further parts of october auto parts retailer, we are seeing continued weakness their old with automakers themselves. autozone has been weak recently, falling again today. you can track their performance on the bloomberg versus the s&p 500 index. if you look at the chart, you will see the snp is in white. really can only say heartbreak, they really diverge starting in 2017 when auto-parts retailers and other retail generally has gone south, even as the rest of the market continues to climb. >> for more in the markets,
2:03 pm
joined by lawrence taylor -- a specialist a place of managers in hundred $62 billion in assets . a lawrence, great to have you on. of spoken to through -- three portfolio managers in the past two days. there said investors -- to set investors are complacent, the other said if you look at the snp, it's justified by the underlying earning. i see bothu said? >> arguments. the market has been strong. markets are up 20% on a trailing your basis. the makes people want to take profit and sell. is strong, if you have a 12-18 month on the horizon, that will drive equities of. >> which sectors in particular? >> one challenge of seen -- real he'd come through in tech in particular. that's one area we are fading we've seen a big favor
2:04 pm
the trump roast. theon't think that piece of industrial, deep cyclical rally is likely to be where you want to be over the next 18-24 months. >> where he said on sectors depends on where ecb see the overall equity market going. second march, he spoke on the barricades against equity markets, saying rising inflation could snuff out to rally. given recent data do you still believe in inflation like this? tearese are the points -- complacency comments, where we spend a lot of time thinking about, what are the downside risks, and when you look at the market -- using companies lead the market -- not towards where the data is going to strengthen, where you will see rates -- and
2:05 pm
which inflation comes or two magnitude where may start to have cracks in the u.s. credit cycle. terms of the rally of growth, that's saying the opposite. to thein the mind economic growth coming thursday want to bet on high numbers that can grow even in an anemic environment. >> do think inflation is a risk for the top side -- or downside given and read inflation with had? >> i think inflation will be higher in the next couple months. which inflation will take up as well. that's -- if you look at over two years, that's a theme that you want to monitor and ceo paul. i do see it for one area where you could perhaps there to see stress coming through. fedne thing of course, the has been looking for this inflation that has not gotten to the 2% it has targeted. five.s g #tv 49 of the green section of this chart,
2:06 pm
excuse me,ortion -- court deflation. this average about 2.5%. under berdych he here -- an average 1.9%. janetast section here's yellen, average 1.1%. it's remarkable considering she was seen as a dove -- willing to tolerate higher inflation. wise and stable inflation under jan can't get to the 2% target? >> there are new and secular deflation -- likely to keep inflation from getting back to those the stork highs, whether it's demographics, the end of china's industrialization phase, whether it's shaler and gas, permanentlyk will suppress oil prices -- whether it is technology innovation, automation -- these are all secular shifts in the retail
2:07 pm
sector. inflation,gging on causing inflation -- to effectively -- we below historic norms. a think that that is part of a complacency. the data is -- inflation is into hot, not too cold either. that's a good setup for equity markets in general. >> lawrence taylor, thank you so much for joining us. we will have more in markets tomorrow with the fund -- bill gross. you can catch that in the three possession of you: 30 a.m. and is part of our bloomberg invest summit taking place here in new york. onto washington. president trump begins infrastructure push yesterday with a plan to modernize and protest they are traffic control system. the three clock p.m. he will pivot to the prairies and a white house meeting, with republican leaders of the house and senate. comey cloud -- looms large as
2:08 pm
the fired if the i.t. -- chief prepares to make it anticipated testimony on thursday. kevin cirilli joins us now capitol hill. course, jim comey testifying will be the big story thursday, president will hosted an arrest with senate and house republican leaders. what is likely to be on the agenda? will they discuss at all the fbi director's upcoming testimony? >> i was just speaking with a prominent republican mentor -- member of the house of representatives who told me the feeling right now is that the white house -- looking to do some outreach to a dress what they feel is going to be a major distraction of sorts. now former fbi director james comey testifies before the senate intelligence committee. i just interviewed some -- democrat from delaware who said, democrats are going to be -- hearing directly from the why he believes president trump fired
2:09 pm
him last month -- whether not this has to do with any collusion. the washington post -- for cost reporting -- the president is considering live tweeting this event. the spectacle, intrigue, ramifications, are only going to be the center of attention here in washington, thursday. the top members of the intelligence committee are set to testify in house tomorrow. alia: i want to take you to different subject kevin. we talked about donald trump's meeting with the house and senate republicans today as well. what are we expecting to come out of that? hope i believe his the house will give some guidance on how far along they are with the health care bill. >> so, there are some rumblings of health care bill is going to get health to perform and stressed by the summer -- i think that's a long shot in terms of everything going on. this there's a hearing with director comey -- should've been
2:10 pm
a type of new developments, it would really put pressure on republicans to continue focusing on the russia probe as opposed to other legislative priorities. i spoke with a source earlier today -- will meet with print -- vice president mike pence in hopes of getting to some type of budget agreement deal for later this summer. they feel they have to deal with the house before addressing tax an avenue tofind fund it. the procedural hurdle, just how the republican caucuses on this issue, is really making its complex for them to address something like tax reform, simply because of the diversity of thought that this republican caucus -- getting them on the same page -- there's the point out there yet -- only makes it more difficult democrats aboard a later on. speaking of rumblings, we have the donald trump announcement over privatization of air controls well. i knew you were speaking to the
2:11 pm
key proponents of this in 2016. what did he have to say about the announcement, the likelihood we get something concrete on this question? >> bill shuster earlier today said that they -- he believes there will be a markup of legislation that he put forth. that's the crux of a president trump is calling for later this month. he said he has assurances from house leadership to get a floor vote by the end of the summer. says this is a no-brainer and terms of the airline industry wants, modernizing -- let's look at what he had to say. >> this is something long and the making, very positive, .oable those people who say it isn't, those are the same kind of people that dish wilbur wright -- imply planned that we never make it to the moon. >> it has some -- in the house, but it's unclear if this is in the senate, simply because they of health care, tax reform come budget agreement, and whether or not russia -- the trump campaign had a collusion.
2:12 pm
i was going to ask you about the debt ceiling but we have been wrapped. kevin cirilli, thanks for joining me. on thursday. her jan analysis on former fbi director james comey's testimony before the senate intelligence committee. the starts at 9:00 30 a.m. washington time. let's check on first word news mark crumpton. mark: the paris prosecutor's office is open to counterterrorism investigation, after a man used a hammer to attack a police officer cytometric in the future. authorities say the officer shot and wounded the attacker. the associated press sites police union official who says the officer was patrolling the us when on in front of the world famous cathedral when the attack and hat -- happened around 4:30 p.m. harris -- paris time. fire in a police van killing one officer greatly wounded two others in another attack.
2:13 pm
tech was shot dead by police. the mayor of london says he doesn't care about the repeated insults from the president united states. he asserted today that quote, he really couldn't be bothered about what donald trump tweets. mayor sadiq khan has a history -- of the british capital's first muslim leader, has repeatedly been targeted by president trump on twitter after saturday's attacks and they won the area that claimed seven wives. president pence demand for telling the public there was no reason to be alarmed by the atrocity. mayor khan had been referring to the president's apartment -- officers on the capital streets. steveneasury secretary mnuchin spoke with the u.s.'s trade and economic issues with china today. in washington with u.s.-china visit cap -- business council meeting, secretary mnuchin said he was once reciprocal open markets -- reiterating what president trump proposed early on. >> the president was clear during campaign, with our
2:14 pm
meetings. trade is ace in significant concern. the chinese have heard that, i think they understand that, and that's not going to change overnight but that is something we are working toward. >> secretary mnuchin says he's pleased with the direction the u.s. is heading with china. the president making pressure and qatar. he tweeted today that leaders he met last month -- accused them extremism. the saudi's, united arab emirates -- and egypt, have cut off air and sea transport and have closed their only land -- a deny any support -- global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. i'm mark crumpton, this is bloomberg. scarlet: think you much. at coming up, apple joins a global town -- counterterrorism effort.
2:15 pm
they're working with the k government to do that. this is bloomberg. ♪
2:16 pm
2:17 pm
julia: this is bloomberg markets. in julia chatterley. an scarlet fu. less than 48 hours before voting begins in the u.k.. simple show theresa may's conservatives have a narrow lead over german carbon in the june 8 vote. i'll see over securities front and center in the last few days of this campaign following the ondon terror attack saturday. in our exclusive interview, apple ceo tim cook says the companies helped just officials investigate terror attacks. attacks --, these our heart goes out to everyone affected.
2:18 pm
they are horrendous. u.k., for us, we have been in the u.k. pretty much the whole length of time of our company. it feels like there is with of employees there. withat do we do helping this? beginning --ce the the app store. we do not want hate speech on there. we don't want these were cruising things on there so we have tried -- recruiting things on their swift tried to be careful. i'm not saying that we will never make a mistake, but actually, i do not know of the case for something has gotten through in that perspective. we are very vigilant on what
2:19 pm
happens from that point of view. we have been quite operating with the u.k. government not only in law enforcement matters, but on some of the attacks. i can't speak in detail about that. in cases where we have information, but they have go through a longer process, we don't just give it, we do it very promptly. hope that they would say, we have been quite cooperatingll -- well. there's been i think a misunderstanding -- encryption does mean there's no information.
2:20 pm
metadata is important. emma: can we assume tonight >> the reality is cyberattacks on people and governments -- it's happening everywhere -- these affect your safety, your security. it's not just private -- privacy. it's a privacy versus security. its privacy and security versus security. working to produce stay oneey once -- step ahead of the attackers. it takes all that we can do to do it. we do not think our users should
2:21 pm
have to think through all of this. it's not practical for people. andry to stand up for users stay one step ahead of these guys. >> that was apple ceo tim cook speaking with bloomberg's emily chang. unveiled a new siri-powered smart speaker. still ahead, a great number of s&p 500 companies losing money. the troubling trend explained next. this is bloomberg. ♪
2:22 pm
2:23 pm
scarlet: the s&p 500 just posting third-quarter year-over-year earnings. in the shadow of the rebound a trend that has been worsening for more than two years. here is oliver renick.
2:24 pm
you.ank indeed, things have been very positive the way we of talked about earnings lately, with a third-quarter earnings -- better than expected. something happening under the surface, not looking good. that's the idea of negative .arnings basically, unprofitable companies in the u.s. stock market. the getting bigger and bigger. click aware this is happening. it's no secret -- anyone watching the equity markets, knows that things have not been good for energies. it's not just, energy companies. this has been happening at us a couple different sectors. lately seen technology, discretionary companies, consumer shares that actually have not been profitable. this means overtime, more and more companies have not been running shares. this is something that is very unique, doesn't happen this late in the cycle usually area will look at major effects in terms of longer-term picture -- the bigger picture of you well. this is looking at the 12 month
2:25 pm
earnings per share in the white over here. were looking at the typical way you think about earnings per share right now. that's about $113 over the past 12 months. we all know that. what we don't know as the blue line here. this is looking at the earnings per share minus the companies that are actually losing money. that's a drag on the overall earnings. that's not good obviously. back up a earnings without -- without those negative losses, that will put earnings close to 117, the highest ever. in reality, overall we are slightly below the peak in 2014. here's a display of what actually happens in terms of the spread between them. 2014 --see the peak in more and more companies over the past three years have been tallying up some losses. that's not great. move it over to the possible explanation for why. this is getting speculative, but
2:26 pm
i think it's a trend we have been seeing in the markets with growth versus value. we have seen this explosion of growth companies -- in the past couple months. right here is a big divergence where companies are up 14% here. i think what's happening, investors are looking more and more to get the yield in the market. they are willing to forgo a positive earnings story. i think i could be concerning as we look at earnings that overall have an positive. the trend of money-losing companies is disturbing. content some do a better myself. oliver renick, thank you so much. julia: still had come a commodities close, gold drilling as investors focus on the event this week. this is bloomberg. ♪
2:27 pm
2:28 pm
2:29 pm
commodity markets are closing
2:30 pm
in new york and we start with gold. gold is at the highest level since november. inre are things factoring like the u.k. elections, and u.s. economic data as well. behind me.ld it is not the only thing falling. copper is also falling. you can see behind me that hedge funds are pulling back and there are concerns on slowing global demand for the metal using pipes and wires. also oil. efforts get under way to resolve the class between different members and saudi arabia. we have the wti higher by 1.5%. it is the sweetest story, scarlet, in the mexico in state street -- in the state. >> the us is just announce a trade deal for mexico of imports from sugar.
2:31 pm
joining us now from washington , sarahteam leader mcgregor, and the government reporter with us. what were some of the sticking points within u.s. and mexico minutes batch -- that were managing to be involved? > the details are coming out right as we're speaking great they're announcing the deal. u.s. and mexico agreed to allow mexican imports under a to the u.s. quota system. that's deal came up in march so they have been discussing about a new deal and how to make sure mexico can keep the sugar coming thatthe u.s., and it isn't the u.s. is threatened because, if they couldn't come to a deal, they would impose duties on the sugar. one thing that was a contention was that the u.s. wanted a limit on refined sugar because they
2:32 pm
wanted to be able to process it itself. it also one of a lower sucrose content so that the u.s. could want again process that themselves. edge of the front what's will promise to be other issues that u.s. and mexico need to short out, including all the products that are currently being traded between the two countries under nafta. how closely are officials watching this sugar deal is an indication of how the nafta talks might progress? >> there watching it closely. as a syriza, the news is breaking right now. this is sort of a crisis averted. if there had been a bigger dustup over sugar, it could've contaminated the talks over nafta. that would be very dutch to both sides. just anco, there isn't urgency to get this done right, but there is a timeline, because electionwhen timeline
2:33 pm
season is coming upon us. everything has to work like clockwork at this point. >> lemaster question as well. i'm looking at comes the secretary made and he says mexico agreed to also requests of the u.s. to sugar companies here. the inference there appears to be that they have caved to the demands of the u.s.. is that what we were expecting? you can kind of tie this to the hopes of future negotiation's over nafta as we were just talking. >> i think that is the message the u.s. will want to get across that they are the dealmakers summit of guys, negotiators. in negotiations, the more public agreements like nafta or other trade accords that they want to hammer up, they want to send the message out that they got the concessions that they wanted. it will have met their demands. so, i think this is a seen as a test case for some of the trade accords.
2:34 pm
the messaging from the u.s. will probably continue in this thing. minister ofmy mexico said we accept some of the rebalancing here but, he wanted it seen done through trade expansion rather than trade restriction. how does that work in practice? what did he actually mean that? particularly if u.s. is supposed to get them on it competitive devaluation restrictions and not target them directly with exports. >> just like with what happened your the sugar deal, it is about saving faith and bringing home a deal that the electric and it and mexicoctr could share. concessions and sweeteners to the deal. specifically that the u.s. guarantees that any excess demand for sugar would come from
2:35 pm
mexico. this wasn't in the deal before. withe how mexico comes out -- on the winning side as well. in the future, for nafta, this will be important for mexico. >> we should mention that as the news conference takes place them at is currently saying the deal that they have reached as reduced refined sugar amounts to 30% from 53%. that is in reference to sugar being imported from mexico. sarah, and the days leading up to this announcement, what do we know about how the sugar industry is positioned. they obviously wanted certain things and food manufacturers want a course in the race as well. any deal that raises the cost of sugar will heart them. how involved with a in the negotiations pressing their argument? sarah: mexico was the biggest source of imported sugar for the u.s.. the u.s. is also a significant
2:36 pm
producer and there are refiners here. there's a whole, giant lobby behind sugar in washington. there's no doubt that the administration was balancing that and trying to make sure that they had the best deal for americans and workers. and of course accompanies great sugar is used in every thing from soft drinks, par 4 farming lobbies. i think this is a real test for the administration on how it could negotiate the issues and try to please everyone. found same time, they something workable that another country could also deal with. >> it is also critical for the politics mexico. we have presidential elections in 2018 concerns about the populist candidate as well as he said he would happily negotiate the nafta. how critical is it to being a government here to sign-up a deal and get this renegotiation
2:37 pm
done as soon as possible to the benefits of mexico? the argument from the mexican government is that it is critical. this extends past election or, if they can clinch a deal late this year. then, nafta and the whole u.s. mexico texan -- tension comes up in the election season. that's in every thing is heightened, everything is muddied, and it is hard to see a clear path to the future. it is essential that this gets squared away as soon as possible. macgregorou to sarah pokitdok --athon -- >> all the losses that we saw in light of the dollar trump's election victory and the concerns over the wall has been raised. >> like it never happened.
2:38 pm
the second headlines with mark richt and. scarlet, thank you buried the us government is that i claims from u.s. government report saying that russia did intervene in one aspect of the election. when article that was published yesterday said a russian elle intelligence -- a russian intelligence agency would send a fishing email to representatives. is cook said the company else british officials investigate terror attacks. mr. cook spoke to my colleague emily chang. >> in cases where we had information, and they had gone through the lawful process. but, we do give it
2:39 pm
it's very promptly. law-enforcement officials have criticized apple for its high privacy standards and tough encryption. in afghanistan, that government has drastically raised the death toll from last week's truck bombing. the president says when than 150 people were killed and that the tax. that makes it the deadly single attack in the 16 years since the u.s. invaded afghanistan. a syrian force said they have begun an offensive to capture the northern city of raqqa. an american commander says the battle against islamic state's will be long and difficult. said then activists u.s. backed fighters were trying to break into the city from the east. that triggered intense fighting. he was among -- that city was among the first captured in the islamic state 2014. it has been home of some of the group's was prominent leaders. news 24 that global
2:40 pm
hours a day powered by more than 2600 global is that dollars and analysts around the world. uber has said to have fired on sexual-harassment claims. more on this is next varied from new york, this is bloomberg. ♪
2:41 pm
2:42 pm
julia: this is bloomberg markets, i'm julia cassidy. scarlet: i'm scarlet fu. it said to julie hyman. julie: that's ok is the tech .25%r etf and is up only but that is enough to push it to a new record. this is indicative of the strength we have seen the technology recently.
2:43 pm
even a small game like that is enough to push it because it has such an uptrend. take a look at some of the out performers we are watching today's session. in the chip industry, amd is rising after late yesterday and apple said as part of its developers congress that it's a new imac pro will have a processor from advanced micro devices. does share 8.5%. itsmorgan stanley calls most debated spot under pure coverage because of recent thetility, an analyst say june 20 analyst they should create more stability and sentiment surrounding that stock. then, apple itself, it fell yesterday during the developers congress -- conference. it is putting much unchanged on the today chart you can see it climbing after yesterday's decline. some of the peers are also at records. yet some of the tech giants, even though they are not up much
2:44 pm
today, it is enough to push them to a new record. at least on a closing basis. facebook, microsoft, alphabet, all right thing. one of the consistent topics of discussion has been how much these big tech stocks have contributed to the gains overall this year. it is hmo be on the bloomberg. this is tricky to read. it looks at index point gains than the s&p 500. iran report on it. apple, alphabet, microsoft, amazon, facebook are the top contributors to the s&p performance this year. julia: thank you so much julie. what the 20 uber employs seven sexual-harassment claims. this is from eric newcomer. he joins us now from san francisco. eric, great work on the story too. explain to us, what investigation was going on and is the separate from the company
2:45 pm
investigation that is being dealt with by a former u.s. attorney general? >> it is related. the were hired eric holder to come up with recommendations for what uber should do, generally on its culture, how women are treated in the company, and sort of a broad inquiry that comes along with recommendations. invest intorkins to the backbiting of individual harassment and, all of this was born out of susan who was a former software engineer. this was born out of the same but thereomplaint have been multiple components of the investigation. scarlet: something uber is also losing involuntarily people. trains through the brain that is taking place at uber. how critical are these folks? >> as far as the investigation, .0 people are more terminated
2:46 pm
top people have left. there was a resignation after allegations at his former employer. peopleave been other top that it is not quite clear why they left. i don't want to bring them up in relationship to the accusations because it is not clear at the moment why certain execs left. a number have them -- a number of them have left. head of communications of policy, different reasons, but they have had a lot of exes. julia: there are people who throw accusations around about uber drivers and the potential dangers. in the k, the taxicab, traditional caps, were dangerous to go with because of the background check reasons. to have a check of where the 20 people are located within the company? arethey over drivers or
2:47 pm
they in a fundamental structure of the company. >> these are employees. drivers come and go. every day, i wouldn't be surprised if there were 20 drivers who left the uber platform in a single day given how many they have. , likeare core employees software engineers, business sites, many of them at headquarters. abouts who we are talking when we talk about these 20 plus terminations. julia: i wanted to make that clear, thanks, eric. , joining us with this group with that harassment probe. julia: one of many skills. .'m just looking at his stories scarlet: let's get you to the bloomberg business flash. is highlighting the need for infrastructure spending in the u.s.. it tweets from china, is impressive the condition of the
2:48 pm
airports and roads. he stressed the need to keep up. the sentiment echoes similar calls from jpmorgan. shareholders at general motors have sided with management and rejected a proposal by david einhorn to split the company's stocks. more than 91% of the votes were against the plan. to -- son wanted amazon prime will be available to income shoppers at a discount. people will pay five dollars 99 to the month for free shipping and unlimited streaming of movies and tv shows. some analysts say the move will help people better compete with walmart. that is your business flash update. julia: coming up, we have details from an exclusive interview in bloomberg markets magazine with the ceo, steve, including his percent back that
2:49 pm
his perspective on advising donald trump. that is next. this is bloomberg. ♪
2:50 pm
2:51 pm
julia: this is bloomberg markets, i'm julia chastity. scarlet: i'm scarlet fu. a get to bloomberg markets magazine. jason kelly spoke with blackstone ceo and they discuss a wide variety of topics including the role advising donald trump. yesterday, we spoke exclusively with the ceo of apple and he decided not -- and why he decided not to take part in the advisory council. councils, find these in general, to be terribly productive. about not wanting to advise on something where i help or we could
2:52 pm
could have a point of view that should be heard. i am doing the latter. i can't imagine a situation where i wanted to do the latter because it is in the best interest of america to do it. first and foremost, imf american. scarlet: joining us now is jason kelly. jason, you set up for this interview and talked a lot about what he thinks about president trump. he has advised the number of presidents. how did he compare and contrast them? >> is interesting for him to talk about this. he is in extent to the current .resident with donald trump, i think he finds someone who is quite practical. heis a dealmaker, and talked about in the interview about the notion that the president is ultimately someone who wants to get things done. he made an interesting comparison based on how someone
2:53 pm
with a political ideology often, a strong political ideology, will often move 5% one way or another. here's a guy who is very willing to change his mind in order to get things done. i think we have seen evidence of that. scarlet: doing what he basically. julia: as the ceo, you're saying that is an ok thing. as a politician, you could decide first. >> that is right. this is a president that was not a card-carrying member of the party that ultimately nominated and elected him. he identified as a democrat before that, and he brings a certain difference in style to the white house. scarlet: from steve's perspective what is donald trump executed on so far and what has he done well on? did he give any specific praise?
2:54 pm
>> he talked about teeing up the notion of regulatory tax reform. lay-ups this roadmap, whether it means revisiting dodd-frank, and specifically, whether it means revisiting the tax treatment across the board. those are things he pointed out that he is looking for to hearing from the president. >> i love the comparison he made with the amount of assets that they now control versus the proportion on a relative basis. thatis has been something has befuddled mentally steve, but also henry robinson that's kravitz and -- blackstone was one of the first big wants to go public 10 years ago coming up in a couple weeks.
2:55 pm
what's the talked about was the idea of not really being able to convince public shareholders of the business model. knewviously said, if i what the actual problem was, i would fix it. [laughter] to see how much time he's been thinking about it and changing people's mind. julia: it's the difference isn't it? those willing to put cash with the fund like that versus the apparent sentiment of shareholders. it's quite fascinating. >> it is, especially when you look at blackstone which is growing under management tremendously. it has expanded totally and private equity but also in real estate and hedge fund. for --ve amassed so much they have amassed almost $400 million versus $8 million when they went public back into the seven. clearly, there is a segment of institutional investors who have .locked to this as its class
2:56 pm
public shareholders remain pretty skeptical. julia: we need to get those two groups of people talking. [laughter] scarlet: the frustration is the share price not moving the way he wants to see it move. thank you, jason. jason will be interviewing steve live from the bloomberg investment summit in 2017. you'll want to turn it destin and all day or special coverage. that is julia: that is not all. david rubenstein and his conversation, catch that 330 eastern. -- 3:30 p.m. eastern ♪
2:57 pm
2:58 pm
2:59 pm
julia: it is 3:00 p.m. in new york, 12:00 p.m. in san francisco, 8:00 p.m. in london. i'm julia chatterley. scarlet: i am scarlet fu. welcome to "bloomberg markets."
3:00 pm
julia: we are live in bloomberg world headquarters in new york over the next hour. here are the top stories we are covering on bloomberg and around the world. in politics, tax reform and health care on the agenda at the white house. president trump is moments away from meeting with house and senate leadership to discuss the next step of the legislation. staying with politics, the future of leadership on climate change is at stake. california governor jerry brown tells bloomberg that the country's role has been released because of the president's decision. and south africa is falling into its second recession in eight years. what it means for emerging markets coming up. we are one hour from the close of trading let's check on markets with julie hyman. mixed bag? joe: it is turning -- julie: it is turning to the
3:01 pm
next. not much lower, not much changed. nasdaq could be touching a record. i will have to update you. not seeing a lot of range. the trend today has been risk-off. generally it has been more risk-on. this is risk-on, risk-off index. and the bloomberg financial conditions index as well. both of them have broadly been trending up. said, the risk-off attitude is substantial enough to be holding back at least the dow and s&p. consumer discretionary stocks are one example of the cyclical groups trading lev -- trading lower goo the compan spoke at an investor meeting and said it can expand the gross margin on -- on the apparel side of the
3:02 pm
sayness overtime but cannot when the margins will grow. other retailers -- kohl's for example -- are down. automakers are falling today. advance auto parts and other auto parts retail companies are falling as well stop -- as well. we have some strength and commodities today. oil is rising after the energy information administration came out with the forecast for demand that was raised. warmer weather in parts of the country is causing an object in demand -- optic in demand for electricity. we are seeing stocks rise as a result. scarlet: in politics, president trump is hosting house and senate leaders of the white house this hour. earlier, the president tweeted, "big meeting with leadership on tax cuts and health care. we are pushing hard. must get it right."
3:03 pm
it comes amid a busy week for the administration with an infrastructure plan and former fbi director james comey's testimony on thursday. i'm going to go to the last point first complete has we have some headlines crossing over the last hour that indicated james comey may stop short of saying that the president obstructed justice when he testifies on thursday kid can you tell us about the headline from abc news? sahil: it will be up to legal experts and investigators to director --fbi former fbi director james comey says amounts to obstruction of justice. what democrats in particular are looking for is what the president told him in those conversations come whether he prodded him to stop the investigation into michael flynn, former national security adviser, and whether he asked for the former fbi director's loyalty to him.
3:04 pm
it is not so black and white. it depends on the circumstances, and comey will be testifying under oath, giving additional weight to reports. julia: can i ask what we are expecting from the health care betweenon that happened donald trump and senate and house republican leaders? you hope to hear from mitch mcconnell when he comes out of the meeting, but what can we expect from what progress? >> we heard a little bit from senators earlier as they were coming out of a lunch meeting the republicans had, so leaders could go over some of the options they were considering for the health-care bill. it's assumed that would be discussed with the president a little later. one of the things they stressed that just about everyone i talked to stressed was no decisions had been made. they are working on this and meeting throughout the week. it is very likely that they will be updating the president with
3:05 pm
the progress of they have made. that does not mean that there is legislation it or they are ready to vote on something. scarlet: how involved is the white house, is president trump, with what the senate is doing? he seemed to be very involved in the first round of the american health care act before they tabled the vote, and he seems to be keeping in close contact with paul ryan, house speaker. anna: i think there is a big difference this time. i don't think the president is nearly as involved. the senate decided they were going to work on health care bill on their own and not follow exactly what the house did. they obviously want to change something that president trump was very involved in, dealing with how much premium subsidies people like debt and also dealing with medicaid and maybe expansiong back the as quickly. they are doing their own thing, and not really getting him as
3:06 pm
involved. they like to do things under the radar a little bit more than the house obviously did. julia: hints from the democrats as well that the house will have to vote on this. obviously, amongst all the issues the administration is dealing with now with congress, the tax code. where are we on reformation of the tax code? sahil: i think they are supposed on this issue at this point. i spoke to senator cornyn, republican senator, and told me of briefings with president healthefore he left work care and raising the debt limit, which they have to do sooner than they expected. republicans,y for president trump ran on this -- he considers this the second big thing he wants to do on health care, but they will not move to it until they do health care. senator mcconnell, moments ago before he left for the white house, told reporters that he is more optimistic than other
3:07 pm
senators, he used the words "getting closer and taking it to the floor in the near future. republicans can decide how to go about changing the tax code. at this point i have to dispense with health care -- at this point they have to dispense with health care. not welllly, they are known for doing multiple things at once. scarlet: programming note, on thursday we will bring you full coverage and analysis of former fbi director james comey's testimony before the senate intelligence committee. you can catch it here on bloomberg television or the bloomberg terminal, tv . let's get the other headlines with mark crumpton. interior minister tells reporters that the assailant who swung a hammer at police officers near notre-dame cathedral yelled "this is for
3:08 pm
syria" before he was shot and wounded. people fled the esplanade outside one of the world's most famous churches. it is the latest act of violence at high profile sites in france from which remains under a state of emergency after a string of islamic extremist attacks. british prime minister theresa may says she expects the country's's secret service and police to review how three minutes managed to launch an attack -- three extremists managed to launch an attack in london. she expressed concerns over how one of the london bridge attackers was able to take part in the violence even though he had been known to british authorities. british police have named the third attacker on saturday night. they say he is believed to be an entire national of moroccan descent who lived in east london . the other two attackers were named monday. all three were wearing fake suicide vests and shot dead late
3:09 pm
saturday after ramming a van into pedestrians on london stabbing people in a nearby room will market. the attacks left seven dead and dozens more wounded. homeland security secretary john kelly told a senate panel that the block on the trump administration's travel ban puts the nation at peril. secretary kelly says that as the u.s. leads attacks on iraq and syria, the chances of retaliatory lone wolf attacks on small towns and cities increases. secretary kelly also said there are more "terrorist footsoldier's" now than at any time in modern history. 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: coming up, california governor jerry brown says the u.s. role in the world has been reduced because of president trump's decision to pull out of
3:10 pm
the paris climate accord. from new york, this is bloomberg. ♪
3:11 pm
3:12 pm
scarlet: we have some breaking news -- the president saying at the white house following his meeting with lawmakers that the economy is adding jobs, the stock market is rising. he also said that the border wall will be built -- again, one of his campaign promises. and that, speaking of campaign promises come he is aiming for the biggest tax cut in history. in addition, he says they need to replace obamacare, the previous president's signature legislation, before catastrophe hits. border wall,he obamacare all thrown in the mix . julia: actually quite
3:13 pm
fascinating in light of what we have seen with some of the countries in the region deciding moment,te qatar at this he says he believes his middle east visit paid off. he is praising the hartline taken by saudi arabia and other nations, and that the breakup may need to be convened of terrorism. he is taking the hard-line stance, but a different feel in the middle east as a result of the decisions being made subsequently. we will be talking more about that. scarlet: we certainly will be. as soon as the video is available of the president making those comments, we will bring it to you. california governor jerry brown is traveling across china this week, looking to forge partnerships on clean energy, days after trump told the country out of the paris climate accord. mackenzie spoke to jerry brown in beijing and
3:14 pm
asked him about the implications of the agreement on businesses in china and california. gov. brown: certainly the trade is very important. california agriculture is very much affected by the chinese market, as well as others. the trade in technology, the tourism, the movie industry, all of that is affected. i am particularly interested in clean technology -- batteries. we need cheaper, more dense, more effective batteries if california is going to meet its clean technology goals. we cannot reduce our carbon footprint unless we deal with transportation. transportation is 40% of the greenhouse gases. the only way we will do that is with clean cars. they are not just going to come out of california, although that is part of it. they will come from china and other parts of the world. i have to say, china is a real driver, and the money they invest, the diligence of the
3:15 pm
innovation -- and i want california as a partner with china in that endeavor. otherwise, we won't be able to achieve our climate goals. tom: you talk about innovation there. how much of a thread do you think is posed to u.s. innovation in green tech that they have led in in california, and across the u.s.? how much of that is under threat from trump's decision to pull out of the paris climate accord? , i think theell role of america in the world has been reduced because of trump's pullout from the paris accord. in general, i would say that the chinese are on the move. they are a rising power. how does a rising power get along with a power that made the slowing down a bit -- that may be slowing down a bit? i would say we are definitely facing competitive pressure, and at the same time, we are very divided. we have a lot of issues about
3:16 pm
identity, but politics. -- about politics. republicans are so divided from the democrats. i think we are going to have to find more national unity if we are able to maintain our leadership, let alone our so-called dominance. china has got 1.3 billion they are investing. america now, at least if president trump has his way, is going to reduce medical ,nvestments, energy investments but most of their investment on weapons. i would say that is shortsighted , and under the best of american leadership, we have our work cut out for us, because china is so much bigger, and their economy, along with capitalism and market economy, is a powerful combination that we are going to have to find in our diversity and entrepreneurial spirit, also agreed to unity, or we will lose
3:17 pm
markets. tom: you talked about electric vehicles. million to 5ee 4 million electric vehicles on california roads by 2030. what is the potential role for chinese businesses and investors to meet that target? gov. brown: well, i welcome the setup of battery and electric-car factories or sales in california. we want to make it. in some ways we have an example. china really put money into photovoltaics. some would say they were dumping predatory pricing. ok, i leave that to the commerce department and others to figure out. but in california, we exceeded our climate goals. we are now at 37% renewable energy -- 27% renewable energy. it was just a few years ago that our electric utilities said they couldn't get to 20% renewable by 2020.
3:18 pm
now in san diego, the san diego electric utility is 40% renewable. a lot of that is the reduced, dramatically reduced price of photovoltaics. that came from investment, innovation, and certain political strategies on the part of china. i would say the competitive game is getting more intense. america cannot rest on its laurels. if we spend more time trying to reduce taxes on the rich instead of generating more investment, more investment in the private sector, also investment in the public sector, we are going to lose out. and that is kind of where i think washington is going right now. scarlet: i was california governor jerry brown speaking to our tom mackenzie in beijing. julia: he also spoke to apple ceo tim cook about the president's decision to leave the paris agreement. of a number of the
3:19 pm
silicon valley leaders who contacted the white house directly to tell them not to pull out of the agreement. and way chang asked if you president listen to him. -- emily chang asked if he thought the president listen to him. tim: i think he did listen to me. i think he decided wrong. it is not in the interest of the united states what he decided . scarlet: tim cook saying he decided wrong. california is so large that if it were to stand on its own committee would be the sixth against economy in the world. julia: we also saw a reaction from elon musk, and bob iger, the disney ceo. this will be an interesting question for jason kelly to ask -- how do you combine having shareholders and employees saying we do not want to support this president versus the need to support americans and supporting a government that has to do better? scarlet: do you listen to
3:20 pm
employees and shareholders or patriotism? julia: exactly, it is a tough one. notedt: coming up, short seller kicking off investment summit. he will explain why he is not as short china as he once was. catch that tonight at 6:30 p.m. eastern. from new york, this is bloomberg. ♪
3:21 pm
3:22 pm
julia: this is "bloomberg markets." i am julia chatterley. scarlet: i am scarlet fu. time for "options insight" with julie hyman. julie: joining me is an investment advisor at equity armor investments. we are seeing a bit of a risk-off, a little bit of a risk-off trade today with the vix picking up a bit. as i showed in the earlier
3:23 pm
chart, that has not been the longer-term trend. it has been the decline in volatility. do you think people should be preparing themselves for a volatility shock upwards? >> that is usually the case -- monetary is protecting themselves through mixed options. definitely the same thing going on today. long delta trades. it is typically a head straight for a lot of traders. behind me, 10.5 right now, still extremely low. you look at the last 5, 6 years, only five times has the vix closed below 10. as you say, a lot of people have been at the very least hedging by buying volatility, by preparing themselves for a kind of object. -- uptick. do you think that is the best way to do it? trade. popular actually, i think i will have to leave it there, joke my apologize. the president is speaking.
3:24 pm
resident trump: -- president trump: we have a great team and it is great to be here this afternoon, with the republican leadership -- house speaker ryan, senator mcconnell, representatives, thank you all for being here. i greatly appreciate it. just a short time since the election, we have achieved truly incredible gains for the american people. we have already added more than one million new jobs, and it is going up very fast. you see what's coming out, going up very, very fast. an approved an historic increase in military spending. we have increased the stock market values and values of corporations on the public market by $3.4 trillion since november 8. i have sent 36 bills into law and repealed one job-crushing regulation after another. in fact, the house and senate
3:25 pm
have set a record number of resolutions that eliminate regulations to my desk for signature, saving our economy many billions of dollars based on and in fact, the numbers we just got, the as a proximally billion dollars we have saved annually through all of the bills -- is approximately $18 billion received annually through all the bills i've signed. together we will fight for measures on the border, and we have four very successfully. we have top policies to keep deadly drugs and vicious gangs out of the country. 3 is being taken care of at a very, very rapid clip by .eneral, now secretary kelly he's done an incredible job, really incredible job. and the reduction of people and our border, 78%. it used to be if you cut down 1%
3:26 pm
it was a big deal, but 78%, and that is before we have the wall. the wall will be a great help, and it will happen, believe me. infrastructure, we will be discussing that in great depth and week with gary cohn steve mnuchin and mike pence, everybody else working on it. and to pass a massive tax cut, which will be the biggest tax cut in our country's history if it is passed to the way we would like to have it passed. the biggest tax cut in the country's history, and it will spur business like never before. at the core of this agenda is repealing and replacing the disaster known as obamacare. average obamacare premiums have more than doubled from 2013 to 2017, including an increase of 203% in the -- in alaska. wow, that's a new one. i always used arizona at 116.
3:27 pm
now we are at 203. that's pretty big. 123 in louisiana -- these are the new numbers, folks. arizona,ear of 116% in you will be happened here we have new numbers. and 176% in north carolina, a great state. insurance carriers are fleeing, or no interestr to choose from, and that is happening in a number of states. just this afternoon we learned that the last statewide insurer in the great state of ohio is leaving. they don't have any insurers. that means another 20 counties in the state of ohio will have no health care plan. if congress doesn't act to save americans from this democrat-inflicted catastrophe,
3:28 pm
next year is only going to get worse. it is going to get a lot worse. although i don't know how it can get worse than 203%, but i'm sure the democrats will find a way. almost every major insurer has pulled out for 2018. the house took an important first step to rescue americans from this calamity when paul, you and your group, steve, everybody passed the american health care act. that was a very, very long and difficult negotiation, but it really gives a great concept to mitch, and now the senate, i'm sure, will follow suit and get a bill across the finish line this summer that will be great health care for americans. and i'm looking forward to seeing it, so looking forward to seeing it. so we are working hard on massive tax cuts, and we are working very, very hard on health care and i think we are going to have some very pleasant
3:29 pm
surprises for a lot of people. so i would like to thank the leadership for being with us. mike pence, you have been great. i appreciate you being here. steve, great. has become a lot more famous than me. [laughter] president trump: i'm a little upset about that. i want to thank everybody for being here, and we're going to get to work. thank you very much. >> comey ahead of his testimony? president trump: i wish him luck. thank you all very much. scarlet: and that was moments ago, when the president met with house and senate leaders in the roosevelt room. things,a number of basically going back to campaign promises, talking about the border wall. he is aiming for the biggest tax cut in history, and there is a need to replace obamacare before a catastrophe. he also reflected on the economy, joe and julia, saying that the economy added jobs.
3:30 pm
joe: absolutely. he definitely trumpeted the numbers -- i think he said three children dollars in stock market cap added, about what -- $3 trillion in stock market cap added. those transfer in place before he got elected and it is a continuation largely of them. nonetheless, you heard him in those, citing the momentum as evidence of his early accomplishments. julia: "trumpeted" was a nice word there. he is also confident he can get the health care bill this summer. the quick comment at the end of james comey testifying on thursday, and donald trump said, "i wish him luck." joe: you see markets a little bit lower, but let's get more on where the major averages stand. abigail doolittle is standing by. abigail:


info Stream Only

Uploaded by TV Archive on