tv Bloomberg Markets Americas Bloomberg June 7, 2017 12:00pm-1:01pm EDT
noon in new york, 5:00 p.m. in london, and midnight in hong kong. i'm vonnie quinn, welcome to bloomberg markets. ♪ vonnie: from bloomberg world headquarters in new york, here are the top stories we are following. in politics, president donald trump names former justice department official christopher to leave theick fbi, a day before the man trump fired from the post, james comey, testifies before the senate. market, u.s. stocks are inching higher as investors brace for several key events therrow, but we also get ecb decision in the u.k. election. meanwhile, deputy i is thinking --sinking -- wci thinking
sinking 4%. words from tpg co-ceo john winkle read, and that is just the beginning. president donald trump will nominate now former justice department official christopher wray to replace fired fbi director james comey. this comes on the eve of comey's highly anticipated senate testimony. we learned yesterday comey will discuss detailed conversations he had with the president, but stopped short of saying he is trying to obstruct investigation into russert role in the 2016 election. want to bring in our chief washington correspondent from capitol hill. how was the timing of this nomination significant, kevin? kevin: vonnie, i'm here outside of the senate intelligence hearing room, where a hearing is wrapping up with top intelligence community officials testifying before the committee.
the nsa commit or -- committee had mike rogers as well as dan coats say they felt no pressure from president trump or any other administration officials to impede their investigations into the russia pro. this is all just a political prelude -- probe. this is all just a political prelude as james comey will testify publicly for the first time since the president fired him last month, and that comes tomorrow. the background to all of this comes as president trump tweeted earlier this morning that he wants to nominate christopher wray to lead the fbi, so we caught up with avril lawmakers ahead of the hearing, including senator dianne feinstein as well as john mccain, a democrat and getblican respectively, to their take on it. here is what they had to say. senator feinstein: he has good credentials, but i have not known him for very long. maybe for two hours. obviously, i need to look at it. senator mccain: i think it
deserves consideration, and so far he looks like he is well credentialed, but we will go through the hearing process. kevin: i also asked senator marco rubio, a republican from florida, on his thoughts. him, neither did senator chuck grassley. but the senate feel they can solidify republican support and uber trey mr. ray is someone who will be able to -- able to portray mr. wray as someone who will be able to check out is investigations continue. vonnie: and what are you learning already? kevin: i have been working on this with jennifer jacobs. it will cross the bloomberg shortly in the next couple of minutes. the white house is working in tangent with the republican national committee. they have mobilized an onslaught of surrogates. they are treating tomorrow's hearing, which will grip the nation's attention, as if it is a presidential debate with that same time -- type of legal
strategy in mind, similar to the debate following the release of candidate'st then -- donald trump's, term access hollywood. they are going scorched earth on this and trying to flip this comey in anatching onslaught of criticism, particularly in how he went after democrats and the obama administration, including their favorite local target, hillary clinton. vonnie? vonnie: thank you for that. on a quick programming note, president donald trump will speak on health care today at 12:55 eastern. that is what it is scheduled for from cincinnati. we will bring you those remarks live, right here on bloomberg. halfway into the trading session now, and we are joined now with the majors. julie: very little change, but the year to jane -- here today performance as average as well. in anarlier as we said
interview that market risk is highest since the crisis in 2008. he said instead of buying low and selling high, you are buying high and crossing your fingers. what does he talk about when he says buying high? take a look at this. all of these averages are climbing considerably, especially the nasdaq, which has been outperforming. the russell 2000 has been underperforming after the search postelection. and what about the so-called complacency in the market? we are talking about this adnoc the them. there are other ways to measure it as well. take a look at the bloomberg terminal. this is a chart we looked at yesterday because it was dipping down for the day. at a bloomberg proprietary risk on risk off index. that is in blue and has been climbing. also the bloomberg financial conditions index, which does climb up as well. there is quite a risk appetite in the market here. in addition to that, another way
to measure that is to look at value versus growth in this market. value tends to outperform when people are looking for value, looking for bargains. people are chasing growth right now and that is why we have seen value underperform growth pretty considerably this year. there is a very clear trend line down. this is also happening in today's -- and. if you look at the nasdaq 100 for example, it's a best performers here -- eight best performers -- we do not have it here. here are some of the big performers intervening to gains in the nasdaq 100 today. jd.com and nettie's climbing, along with chinese stocks, macron gaining with chipmakers, and tesla stocks rising after elon musk says they are deciding on a location for the model why planned. those shares up 2%, but that has been a momentum stock as well. on the flip side, to mention the big market mover today is oil. it is sharply lawyer -- lower,
off a cliff after the inventories showed a unexpected supply, 3.3 million barrels, but also a big climbing gasoline supplies at a time when this number driving season is getting underway. , andine supplies were up the four-week average demand down. bonnie? this paired with the ecb decision, as well as fired fbi director james comey testimony, calling it super thursday. we're calling it superduper thursday earlier. fargo assets management, about 481 billion dollars under management, one of the largest asset managers in the united states. she is here for the invest summit and joins us now. christie, thank you for joining. a day like tomorrow, how does it impact someone like you who manages for the longer term but ignoring the macro trends? >> to tomorrow is a day that we will be watching a lot, but we
are not expected big reaction in the marketplace. i think it will be on par -- may will pull it out, the ecb will continue to be accommodated, but stuffnot think a lot of will come out of the comey testimony. we will be watching it carefully but i do not expect to see a big reaction in the marketplace tomorrow. vonnie: has anything really changed since the election? even the brexit voter -- are those long-term trends still in place? >> one trend people are missing is what is happening underneath the current in markets today. by that, what i mean is that we have tended to see these low volatility levels in the market overall. vix is trading at sub 10, but volatility we are seeing an increase in dispersion, so stocks are starting to act quite differently. that presents huge opportunities for us as an active manager. in that gives us a sense of how significant that shift has been when we look back to 2012, we
saw these stocks at .65 percent. now they are averaging about .2%. that is a massive decrease in correlation. and that presents opportunities for asset managers to buy more stock than others. vonnie: and it would be easier for better managers to make their mark for generating that? >> what we found in 2016 was that only 20% of managers outperformed, but an snippet from our own franchise, we are seeing about 74% of all our active strategies outperforming the market year to date by substantive amounts. jim, 185 -- so for june, there are approximately 185 basis points. vonnie: and investors are interested in both strategies, but passes on the receiving end of the outflows. look at the last 12 months about lows -- of outflows were active mutual funds. month, bute month by
where do you see that trend going? >> i think it is a very substantive trend here, and we could extend that back for many years. we look post crisis, we have seen the index share of the market place go from 15% to 35% today. it really is a huge shift and a monumental one into passive investing. i think part of that is cyclical, but part of it is structural. i think we are going to continue to see flows into actives, but you will see some turnaround in those flows as the performance differentials actually evidence themselves in this new cycle. about $500 manage billion, half $1 trillion that is desperate for yield and a -- my yield generates to percent, -- 2%, 3%. are you dipping more into the alternative space? >> there are laces i think are very interesting. one of the places that a lot of
our managers like today is china in the emerging market space. think that is definitely a place that people can go for returns and yields, and it is a long-term play with durability, which is one of the reasons i like it. it is about the maturation of the chinese economy, and the chinese market actually taking its rightful place in the global sphere. that is certainly a thing that we like. another thing i think investors can always look for is ways to play structural -- structural alpha. one of the reasons we do not take -- one of the things we do not talk about often is closed in funds. that allows investors to get into market any more attractive price, even when they are trading at these levels of evaluations. when you look at this heaping praise on to passive funds, most recently talking about this in vanguard. how difficult is it to keep the money that you have under management right now? >> we have been fortunate that we have a very diversified book
of business across a number of asset classes. we do not just run fundamental active money, we also run quantitative money. what our flows have generally been across the board, fairly strong. actuallyhose flows guarantee fixed income and out of equities consistent with the chart you showed earlier, but i think we are at an inflection point. investors will start to recognize the battle you active management and want that kind of insurance protection that active management provides an difficult markets. i think we will say some changes in the flow of the pictures. vonnie: talk to us a bit about individuals, the 401(k)s, not the big wealth that you are managing for families, but the person who is managing for retirement and how that is changing as millennial's go into for a one -- 401(k) accounts. that isf the things great for millennials is that these accounts are set up for success. we had to make up a lot of active decisions to be set up for -- we had to decide where to
put our money. this is not the case any longer. in fact, many plans in the united states are now auto enrolling participants, placing them automatically into well diversified age-appropriate solutions. i think it is a lot easier to be a 401(k) investor today than it was in the past. vonnie: and the return part? x the return part is challenging, but there are ways to combat that again through well diversified portfolios. i think the bigger challenge is what do we do about being diverse? what we do about people who are reaching retirement today who have not really adequately sabr prepared? vonnie: christie, thank you. the ceo of wells fargo asset management. in a hurry to get out of here because she has to get to the lubricant best summit. lots more coming out of that raret, including a interview with dan i vision, cio of pimco. that is coming up at 2 p.m. eastern. let's check in on the first word news with mark crumpton.
mark: the senate intelligence committee today opened up two days appearing about russia's role in last fall's presidential election. one focus is whether president to influence the fbi's investigation. lawmakers got no help the director of national intelligence. >> i do not feel it is appropriate for me to, in a public session, in which --fidential contradiction conversation between the president and myself, i do not believe it is appropriate for me to address that in a public session. the star witness, former fbi director james comey, is scheduled to testify tomorrow. the president has picked a former federal prosecutor to replace mr. comey is fbi director.n a tweet -- in a tweet today, the president said he would nominate christopher wray, who ran the justice department under president george w. bush. he called him a "man of impeccable credentials." and the
united nations says the united states will not allow the u.n. to "bully israel" anymore. nikki haley spoke today in jerusalem after parading the un's top human rights body. israel attacked the georgia state unfairly. ambassador haley told the u.n. president "i have never taken kindly to bullies, and the u.n. has bullied israel for a very long time and we will not let that happen anymore." montenegrins flag has been o's flagt -- montenegr has been raised at nato, as they officially joined the military alignment -- alliance. it was called a historic day, now has anenegro equal voice of the table and the decisions the alliance makes.
winkelried speaking now. my whole career was basically in new york, other than a few years in london. , occasionallyd along the course of your career you have an opportunity to change it up with it. lived in san francisco, the capital of innovation right now. there is a lot of interesting things going on. the idea of being in an organization like tpg that is headquartered on the west coast -- it is an environment that is different than a lot of the other private equity players here in new york. for me, i thought it would create a different mindset, a different type of exposure. firm, theation of the characteristics of the firm, the challenges of a business that is
still trying to build, still trying to grow which, from my perspective, was in my strike zone because i had built a lot of businesses. on fact that it was located the west coast within the context of a different environment, a different community -- that was appealing to me. it,he more i thought about this was the next interesting challenge for me. the job, i was 56 years old, and i felt like i had another go at it. and so i decided to do it. >> 18 months in, biggest lesson? and biggest prize -- surprise, let's start with that. jon winkelried: biggest surprise is very, veryit .ifficult
from the outside looking in, particularly when these firms were starting, clients are across the floor, i think that it did not occur to me how really difficult it is to invest well. the history of success. and you almost feel like it is , butof institutionalized when you get inside you realize it is not institutionalized in the sense of that it depends on a lot of the same things that i experienced in my own job -- old job, that it on the mentally depends on -- that it fundamentally depends on talent. if you do not have great people driving the process everything that you will not generate results. >> i think it is fair to say, and a lot of people would agree with me, there is a distinct culture at goldman. and a distinct culture at tpg founders, 25onic years ago, coming out of the
bath family. you experience in terms of culture shock, if there was any, and what have you imported from goldman that you are putting to work at tpg? jon winkelried: culture shock was an interesting one in that i spent my whole career at 21dman, i started when i was years old. i ended up in the executive office and you know everything, everybody, every crack. when you come into an organization like tpg that does have a distinct culture, you come in as co-ceo and are an outsider, it requires you to in thatthat on the way there are some people who are really pumped and excited about you showing up, and there are some people who are less excited about that. ok, theave to bend --
word that comes to mind was challenging, and change, that is patience. you have to be patient. you have to come in, let the organization gel with you as you grow into it, roll up your sleeves and get involved. you have to try and produce. you have to make. you have to produce and make, and certain places or certain people are much more receptive to your presence. you have to kind of go there. vonnie: that was the co-ceo of tpg, speaking with bloomberg's jason kelly. coming up,vonnie: carl group ced rubenstein will stick down with paul singer. that conversation is that 3:30 eastern, 8:30 london time. here's a quick check of the market that we had toward the next part of the session. equities is basically unchanged. this is bloomberg. ♪
vonnie: this is bloomberg markets, i'm vonnie quinn. let's get a quick check of the day today. not much happening before all of the events happening tomorrow, and if you were to look at equities, that would be the case for the most part. but look at the yen in a holding pattern of 109.54. it is not moving. crude oil is an interesting feature to look at today, 46.06, testing the $46 mark. higher forecast than we were looking for, same thing for gasoline, even demand was lower for gasoline and it is supposed be the high demand in gasoline season. the 10 year u.s. treasury at 2.17%. i want to point out that the 10-year u.k. guilt is trading at 1% even before tomorrow's election. coming up --
♪ vonnie: live from bloomberg world headquarters in new york, i'm vonnie quinn. this is bloomberg markets. let's get a quick check on u.s. .tocks now it does not look like there is much happening before all of tomorrow's major events, the dow up fractionally, 12 points, the s&p not even of one point, and the nasdaq is up 12 points. the laggards in the industries -- indices are very interesting today. abigail will tell us more about that. abigail: oil, look at this. plunging after a surprise to build of inventories as opposed to a drawdown as expected. and our bloomberg intelligence -- the supply glut we are seeing. this is some of the worst laggards in here, up top there
is a driller, and the energy space says that the drill of the services are all the way out on the far end of the beta wit. no doubt, lots of weakness here. oil andahead for both the e&p, we take a look at the longer-term chart of oil. we have taken a look at this chart before, and the point now is oil is either seeing a death trap or a golden cross. -- death cross or a golden cross. the reason we should be concerned about -- the last step second 2014 ahead of that big crash in oil, so we will be keeping an eye on this and whether the range does break. and we have the oil makes above above 34, and in
the s&p 500, it is low, right around 10. we're talking about the bad volatility for traders that could be using all the money in the market, but not for that oil money in the vix. vonnie: banks, abigail. there has been this sort of money forcing fund managers to adjust to the growing popularity of indices investing, and the they need tothat achieve your long-term investment objectives. day,from boston to the before we get into the whole actives versus passes, that ives, are these
funds still in place? >> i think they are still in place, and they are actually quite positive. they are not as positive as we would like them to be. the global financial crisis with a deleveraging crisis that takes a long time to come out of that. vonnie: so are these attractive, even on a relative basis? >> at think it depends on whether they are a long-term or short-term investor. we have got geopolitical uncertainty in the middle east, but in terms of over the long term again, we see lots of recovery in all parts of the world. we see the where most uncertainty would be in china at this point. that is only because there is an awful lot going on there in terms of its own credit issues. china has demonstrated over and over again their ability to recover from these kinds of things. benie: so long term, it will
all right in china, britain, and the united states as well? >> based on the fundamentals. there is any kind of exodus from europe, that is a different story. so far, the elections came in as a very different way than people here -- feared. story, will change the but in terms of fundamental economics, it is slower than anyone would like it that we need to figure out how to invigorate growth and that everything is pointing the right way. where have you been seeing money flows, both internally in the u.s. and externally, globally, where has the money been flowing? cities. a tale of many certainly since the election, there has been enormous inflows into u.s. equities and select sectors were u.s. equities. financial institutions, for example. in new york, it has been fixed income flows. i think part of that was the uncertainty around the election. so the first part of this year,
we saw a lot of growth. vonnie: could the change, both here in the u.s. and the death of the so-called "trump trade," very meager gains the past couple of sessions. could you see those returning? >> we will see. some people will say, including our analyst, will say there is a lot of money that went to equities in anticipation of these changes. and we need to see these actually happen. vonnie: and if they don't? x who knows? will probably see some kind of plateauing, but i will vote that point to the fundamentals, and they are quite strong in the terms that they are not negative, but positive, and any kind of catalyst to that, reforms,t was tax entitlement reform, certainty around things like regulation, those will help those markets. vonnie: well let's talk about how we try to generate some return here. reforms, entitlement reform, certainty
it seems like for so many years, we have been trying to chase .ield all around the base it is getting harder and harder and harder for people to differentiate themselves. take the active managers. how are they doing it is days -- these days, and where they putting their trust? x i think what has happened in active management, people talk about it sometimes quite simplistically. this desertion of active and what is going to passive. but the numbers are actually quite different. even with all the flows, only one third of financial assets -- and i'm not even counting alternatives in hedge funds -- are in passive. 2.5 the importantly, times that comes out of active not to other active and other passive. so what is going on in addition to a move from active to passive, it is a move from undifferentiated active, or active that is more or less hogging and index and more towards differentiated kind of active, or in many cases,
multi-assets. vonnie: and what are people asking about now. >> they are asking for some kind of solution. and if you think about the 80's, 90's, and in the first part of the 2000, it was all about can i find the hot product? if i find that hot mutual fund. and now it is more about what am i trying to achieve? for an environment -- retirement investor, that is saying whatever my retirement date is, 2045, that is a set of investments that will rebalance over time that is a solution, mineng my issue, which is that i want to retire in 2000 45 -- 2045. vonnie: and this chart does show
as much as we talk about money the lastccess funds, date this was calculated, maybe the first quarter -- it is relatively similar. you have $29 trillion in active, and 4.26 in passive. --4.2 6 million in passive 4.26 trillion dollars in passive. ask for that money is definitely in motion. is 2.5 times as much money moving from active to another. what is an example of that? if you think about some of the large discount brokers, like fidelity and schwab, they have seen a transformation of their client base away from holding a portfolio of mutual funds to holding managed accounts, smaller accounts. they're actively managed in an asset allocation kind of way, mutual funds to again meet with the objective is. vonnie: so can you find those
who can generate all for even when it seems impossible? >> it is very hard. and the industry and media focuses on choosing the right manager. i would argue relative to other things, is the third or fourth most important. first, you have to set aside enough. secondly, you have to think about our asset allocation. how my going to invest relative to what i am trying to achieve? third is rebalancing. when things happen in the marketplace, you have to have the discipline to say ok, the stock market has gone down. a 40%am committed to allocation to stocks. i actually need to put more into this lower market. those things are way more important than finding the hot button products. those: if you can do things for yourself, do you even need a manager? >> but those things are hard to do, and that is why you need a lot of discipline. and we're seeing a lot of movement on the individual level and even on the institutional
level away from i will do all the work and have somebody else do that. so i would say the new active. really assembling. how do you assemble a portfolio in a way that makes sense for the client and meeting clients needs? vonnie: new active assembly. thank you so much. the state global advisor and ceo, and the vice chairman as well. here is mark crumpton. mark: islamic state is claiming responsible before attacks by gunmen and suicide bombers on two iranian landmarks today. at least 12 people were killed and dozens wounded. first attack in tehran was around parliament. the siege lasted hours and ended with her attackers killed -- four attackers killed, one of them blowing himself up. meanwhile, another suicide bomber triggered an explosion at the site of the shrine of ayatollah khomeini.
and pledging to work together to promote unity and radicalization, u.s. -- u.k. leaders hold a vigil. >> we are grieving the loss of our federal ritz -- fellow brits, and we are here to extend our message that you are not welcome in our community, alive or dead. mark: faith leaders from the christian and jewish communities joined in, commending the imams on addressing the issue and offering their support. and theresa may is promising a break that cash giveaway. the prime minister says she will spend billions of pounds and government investment to support business, transport, and housing. she says all of that depends on getting the best deal for the u.k. in brexit negotiations.
the while, labor leader jeremy corbyn rejected may pose a call to change the british human rights law and order to fight terrorism. house speaker paul ryan says he is confident congress will pass a debt ceiling legislation. however, they were sketchy on a timetable. >> we will invest in the debt ceiling before we hit the debt dealing. [laughter] >> before it hits. mark: the white house says it wants the debt ceiling raised before the lawmakers adjourn for their august recess. i'm mark crumpton, this is bloomberg. vonnie? thompsonhank you, mark -- mark crumpton. i want to point out that president trump is in cincinnati right now. you can see those live pictures of air force one. it is wheels down it cincinnati need to civil -- at cincinnati
municipal duncan airport. he is there to give, it's on health care, and at 1:20, will be making remarks on infrastructure. once again, president trump at cincinnati municipal monk and airport -- lincoln airport. aa minus two aa by s&p, saying that the emirate may be cut further. once again, the cuts to aa minus from aa, and maybe cut further. this is bloomberg. ♪
the hp discover conference is underway in las vegas. hply chang caught up with executive vice president antonio neri, and asked about the company progress. progress, made huge obviously think about the progress hpe has made themselves. you can see the results, and what they continue to bring on the market. and we lay the foundation between the company going forward, we have completed one coc,e big mergers with creating the largest technological services company veryplayer, and we have a secure strategy for hewitt packard enterprise going forward. purpose,ve ourselves that we want to give ourselves purpose, and we are under
capital innovation is one of our best strategies. it has been a great journey and customers like what we are doing. how did this change the competitive landscape? >> i think they have taken a completely different strategy than what we have done. they got bigger, they leveraged the balance sheet, and obviously have taken a lot of that. but mostly on the older technologies. we have taken a completely different, radical approach to that. we want to be smaller, more nimble, and he lever our balance our balancelever sheet. so we believe we are in a position to win here, because what customers are looking for is innovation, speed, and agility, and the technology that we can bring to them at the
speed of the business, because in the end it is all about business outcomes. we believe we are very well-positioned, but we would like our hand, our strategy. emily: you are often touted as a successor to whitman, not that she is going anywhere as far as we know. but what is this mean is a leader? >> i enjoy what i am doing. i have a blast working with megan the team. and the team.meg i have been in the company for 22 years. about theery excited future of this company. i think we can position again hp for the next 75 years journey. around theinnovate customer problems. for us, it is about how we bring value to the customer faster,
how we use our engineering and integration -- innovation to solve the problems, and how we deliver our customers value. so it is about the corner of that transformation. -- hp: that was hpe and enterprise executive antonio neri, speaking to the leaching. and make sure not to miss -- two emily chang. and make sure not to miss our interview with ceo meg whitman. and the s&p is cutting the , and says it minus may be cut further. this is related to the treatment of guitar by some other middle eastern states, including saudi by other middle eastern states, including saudi arabia. the fiscal and current account deficits could widen once again.
once again, cut from aa minus two aa by the s&p. and now we want to show you some live pictures in cincinnati. president donald trump has arrived in cincinnati, anticipating he will make some announcement on health care, scheduled for 12 caught -- 12:00, and about 1:00, he is scheduled to make some comments on infrastructure. president trump has arrived in cincinnati, ohio. this is bloomberg.
we are waiting on president trump to make these remarks. joining us now is chief washington correspondent kevin cirilli. kevin, this is all coming at a very, very busy time for president trump. about thes questions former director of the fbi. toin: yesterday, he said reporters that they have made significant progress to health care reform, but all the attention is on the russia probe. the top intelligence community officials are testifying, as well -- michael rodgers as well as dan coats, saying they did not feel pressure from the white house on their pressure -- russia probe investigation. can tell you that i have spoken to several lawmakers on
their way in and out of this hearing who have said they are still waiting to see how they feel about the nominee to the fbi, which he tweeted out earlier today. all of this again is a political prelude of the drama is unfolding tomorrow with mr. comey's testimony. vonnie: kevin, thank you. we're watching some pictures of the president and his gaggle of children there as he comes to make some statements about health care. what could he possibly be saying in the next few minutes? donna: he will be meeting before he talks with some people he calls "victims of obamacare," and will be trying to make the case of the current law is failing in that something will need to be done to rescue that and push the senate along in their process of trying to come up with legislation to repeal obamacare. in addition to the fact that he is in ohio, that might speak to
a large health insurer they're saying they might drop out of their next year of obamacare plans, which is an thumb, and one -- and them -- anthem, of the biggest providers hanging on in obamacare excrete is -- in obamacare exchanges. congressow far has come from examining health care in any real way? >> there is not a whole lot of time left before congress goes on an august recess, which they really want to have health care done before that. the senate has been working on something --to get their version of a health care bill together after the house passed it. majority leader mitch mcconnell tonie: and we want to get the president of the united states. thank you. pres. trump: upended by the disaster known as obamacare. from ohio, from kentucky, these
families and their view full children. thank you both, and i want to thank you so much for being here. great families. for being here and sharing your stories today and giving voice to millions and millions and millions of americans who are going through turmoil right now, absolute turmoil. these are americans like you, like you, like all of us. health care is about so much more than dollars and cents, it is about real people. honest americans to take -- who work hard to take your of their families and give their best to our wonderful country. --s woman and her husband ray a had a great affordable health care plan that worked for her family. she loved the plan. really love the plan. then came obamacare. -- sheked her doctor
liked her doctor, wanted to keep her doctor, but was not allowed under the rules and regulations unless she paid an additional $50,000 in out-of-pocket expenses for the birth of her precious little girl, just born. her monthly premiums have quadrupled, heard the doctor bowl is a staggering $15,000, is ang -- her deductible staggering $15,000, meaning they will not get to use what they are paying so much for. -- this roles story man's story is just as bad. he owns css distribution group, a small business in louisville kentucky -- louisville, kentucky. wright state, fanta -- great state, fantastic people. before obamacare, his employees enjoy plenty of options for high-quality, affordable health
care. everybody was happy, is that right? everybody was happy. then came obamacare, and now they have few choices. premiums are one under 50% higher -- amazing. in alaska, it just went under -- and creating200% new jobs is not an option for them because the health care is so expensive. these are two of the many victims of the obamacare catastrophe created by congressional democrats. across america, premiums are skyrocketing, and the american people are paying much more for much worse coverage. the coverage is horrendous. it is horrendous. the law's provision took effect, premiums have exploded by an average of 86% in ohio and
75% in kentucky, and those states are minor compared to others. the numbers and some of the states are much, much higher. just yesterday, we learned one of the largest insurers is pulling out of ohio. that could mean another 20,000 counties and 19,000 people will have no plan available to them. in kentucky, seven carriers have exited the state since obamacare was implement it. i have been sick -- implement it -- implemented. i have been saying this for a long time. and i doends continue, not think they will continue, but we will come and we will do something great. we are in the process of doing that. but if they do continue, i do
not they will have no plans in kentucky in 2018. families, 93,650 think of that. paid $16.5lies million in penalties instead of purchasing unaffordable obamacare health plans that did not that didn't me to their needs obama cut --. is in a spiral. the problems will only get worse if congress fails to act. obamacare is dead. i've been saying that for a long time. everybody knows it, everybody that wants to report fairly about its nose. hashouse of representatives done its job. senateend a plan to the and the senate is working it's over. we spent a lot of time yesterday with mitch mcconnell, and a lot of the great