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tv   Bloomberg Markets Americas  Bloomberg  June 8, 2017 2:00pm-3:31pm EDT

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testimony on capitol hill this morning and this afternoon in which he revealed the president pressed him to "let go" of the investigation of michael flynn. remarksbring you those from the lawyer as soon as we get them. the jpmorgan coo is leaving the bank. he was considered a possible successor to jamie dimon. we will bring you more details in just few minutes. no shortage of headlines and news today. let's check in with julie hyman. abouts. market close in two hours time. is it doing anything for equities? terms of the headlines coming out of washington, no. we are seeing higher volume than a 20 day average. i, for one, anticipated lower volume today sent at the very least able were taking a pause on trading to watch the hearings.
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that does not appear to be the case. the dow and nasdaq each touching intraday records. the upward momentum has resumed. financials are a big part of the rally today. is a big, big move for the it financial index stop seems to be a lot about what is going on. you mentioned jpmorgan even before the headline coming out. j.p. morgan shares up by 2%. regional banks doing well today. take a look at the treasury market because that appears to be what is driving this rally in the financials today. not take much. even a marginal move in the treasury market appears to be .aving an outside reaction only two basis points higher today.
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yields havereasury been moving sadly hire all week, fueling some of the gains in the financials. --e company specific news alibaba shares at a record today. 45% tompany predicted 49% revenue growth in the year ending march. pulling yahoo!, along with it. nordstrom making big headlines, ,he family that owns nordstrom or one of the majority owners is considering taking private that chain as it has seen trouble with the rest of the industry, but nordstrom has appeared to weather them better than the other department store chains. : staying with the markets, there may not have been much reaction to the comey testimony, but noise coming out of washington is taking its toll on
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market sentiment. as the bloomberg investment summit kicks off, we saw some of the biggest names in the industry talk about their concern. >> instead of buying low and selling high, you are buying and crossing your fingers. aret's a market where you particularly susceptible to bad news, even bad news going forward. >> the level of complacency were markets are is pretty scary. >> we see even the valuations of markets as a whole, the stock and the bond markets are in the 90th percentile. isia: joining us with more gina market adams. ae bottom line is there's debate about whether there is complacency or isn't. investors are buying on digs. -- on dips. guest: that has been the story for a while.
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the valuations are too high and yet the trends persist. for what whatever reason and probably because the economy continues to turn a little bit forward and inflation is minimal and inflation banks are inflating balance sheets, markets are still doing pretty well, quite frankly. is a laundrythere list of things to be concerned about. theseuld it take for kinds of negative headlines to have an impact where investors no longer shrug it off and ignore it? guest: this is why there is the wall of worry and the full sentiment that as long as everyone is concerned, the markets can meld higher. has been a lot of the story this cycle. it's very simplistic but it is quite frankly what is going on. everyone is so worried that they are only risking their way into risky assets. treasuries are still extremely
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and investors are concerned about everything. it is a point in time where investors say none of this matters. this is a huge buying opportunity. when most investors are scared melt up is thehe default direction. thatet: juliet mentioned trading volume today is higher than usual. andave the ecb coming out trying to measure both ways, talking about winding down the balance sheets, what does it say when volume is heavy on a day when there is so much noise and yet people are coming in and pushing stocks somewhat higher? guest: today is about financials. it's the biggest two day move in financials. financials are embracing this
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many selloff that we have had in the 10 year treasury and it could be important. financials have been a big laggard all year and they have been dragging down the value been, which everyone has excited about and trying to reevaluate the value trade. bid atncials could get a 37% of the value trade, it could create a lot of them doozy of them. what the story is today. maybe a reversal of some of the more depressing parts of the market. julia: isn't that funny how they are off just a few basis points that the desperation could get back into the game. buying on weakness just at the moment where you think there is some optimism out there. but did you think of the ecb today?
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the growth looks pretty stable, but we are not seeing inflation pressure, so we will continue to inflate the market with this outsized balance sheet . i think that is a lot of what today's trade is. i think the ecb has had a much heavier hand and driving market performance and intermarket trends that has the fed. they started talking about tapering and that created some big her disruptions, which created a shift in performance in the equity markets that we failed to acknowledge and i think the ecb has a pretty heavy hand. fed next week. does the fed can from the market's suspicion that maybe there is not as many hikes in the future than we were thinking earlier this spring because that only adds fuel to the fire, that this liquidity keeps underpinning risk tolerance. scarlet: what happens if the
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federal reserve comes out and sounds a little more dovish than has been anticipated? people were looking for a pretty strong economy. the rate rise coming on the heels of a strong economy. we need the fed to continue on their course of tightening and not rock the boat. it could be one half more rate hikes, as long as they don't really change their tune, it is probably fine. ecbas more about the changing their tune than the fed so far. it's not their general directive, so i think they are probably going to keep the course, acknowledge there's not a lot of inflation pressure, yet they still feel the need to incrementally tighten policy.
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julia: we shall see. chiefoomberg intelligence equity strategists. good to see. let's get a check on the bloomberg first word news with mark crumpton. day, the big story of the former fbi director james comey giving his long-awaited testimony on capitol hill to shed light on his talks and meetings with president trump in the days before his may firing. three days before the president dismissed comey, he tweeted that he should hope there are no tapes of their conversations. comey: i was so stunned by the conversation that i just took it in. the only thing i could think to say, because i was playing in my mind trying to remember every word he said, i was playing in my mind what should my response be? that is why i carefully chosen
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words. i've seen the tweet about tapes. lordy, i hope there are tapes. i said i agree he is a good guy without saying that i agree with what you are asking me to do. mark: the good guy reference was to former national security adviser michael flynn. mr. comey said there was no doubt russia tried to interfere with the u.s. presidential election. around the same time mr. comey was given -- giving congressional testimony, president trump is giving testimony of a different sort. during a speech to religious conservatives in washington, he said he and his supporters are under siege will stop mr. trump: the entrenched interest and failed, better voices in washington will do everything in their power to try and stop us from this righteous cause to try to stop all of you. they will lie, they will obstruct, they will spread their hatred and their prejudice.
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mark: the president's attorney is expected to speak shortly to respond to mr. comey pasta the money. we will have those comments when he begins to stop a federal grand jury has indicted a woman accused of leaking classified document a news organization. 25-year-old reality winner was arrested in her home by the fbi in augusta, georgia last weekend. the fbi said she was working as a government contractor last month when she copied and intelligence report containing top-secret information and mailed to a reporter. the charge carries a potential prison sentence of up to 10 years behind bars. in the u.k., voting is underway in the second general election in two years. the total of 650 members of parliament will be elected. almost 47 million people are registered to vote stop tune into bloomberg tv's one-hour special today at 5 p.m. new york time.
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we will have instant analysis of the markets as exit polls are published. global news 24 hours a day powered by our 2600 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. headlines --e some we are waiting for comments from to respondp's lawyer to the comey hearing. he is saying trump never told comey he expected loyalty. os.s, according to axi he's also saying comey leaked privileged information. what comey said in that press conference was that he handed memos to a friend that he expected would lead -- would leak those memos. that is according to donald trump's lawyer. scarlet: this is a statement put
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out on twitter. he indicated the president never stopted james comey to investigating. we will bring you more headlines as a cross. in the meantime, we want to go back to the breaking news that the jpmorgan coo is leaving the bank. he was considered a possible successor to date -- to jamie dimon. this is bloomberg. ♪
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julia: this is bloomberg markets. i'm julia chatterley scarlet:. scarlet:i'm scarlet fu. president trump's council will be making a statement shortly. this is coming after james comey
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completed his testimony on capitol hill. we will bring you those are marks as soon as we get them. what we can tell you is according to ask the us, the statement was published on said trumpwhich he had never pushed going to stop investigating and comey admitted he leaked privileged information. osis is according to axi according to a statement put out on twitter. he said he also told comey he never expected loyalty. those are the headlines we have on social media. julia: now we want to get to the jpmorgan news that broke in the last hour. the coo announcing he is leaving the company. he was considered a possible successor to jamie dimon. erik schatzker joins us with more. we were just saying in the break -- first steve black -- the
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point being he is not the first heir apparent to be leaving jpmorgan. the question with jamie dimon is always whether the guy, because they are all guys, was pushed or whether he jumped of his own will. in this case, it appears he left of his own will because the memo that details a little bit about his archer says he has chosen to leave after 13 years at jpmorgan. the same thing happened with michael cavanaugh, co-ceo of the investment bank and he left in 2014 to go work at carlisle. he ended up as the chief officer at comcast. jobound the demands of the and pressure to be jamie's ultimate successor to much, so he left. matt not know yet why
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chose to left. we will buy the narrative that he chose to left -- chose to leave. that was not the case with jes staley. he left under pressure in the wake of the london whale scandal. he subsequently left to go to blue mountain. steve black and bill winters did not leave of their own accord. this is a long-running narrative. scarlet: there is a pattern here. you mentioned the london whale. matt rose to prominence following the london whale scandal. erik: yes. he played a role in helping jpmorgan, helping to unwind those traits. he rose to prominence when the bank took over bear stearns, not quite at the height of the financial crisis. when he was part of the team dropped into bear stearns to comb through its book.
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he became the global head of fixed income and subsequently became the chief investment officer and in chief operating officer. since cavanaugh left in 24, the presumed successor, there are some people left. it is not as if jamie dimon has driven every video. therefore people with operating responsibility, plus the chief financial officer. no, gordon smith and mary byrd as he runs jpmorgan asset management. scarlet: i was looking at some of those names and -- erik: it is worth singling out those on the operating committee because that is the most
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important committee where all the decisions are made. like you said, it is not as though jamie dimon force these people out. there's also a waiting game involved. in this case, you have to move on. erik: that's true. and the storyline around some of the previous departures is that they were too close in age to jamie dimon. other hand is only 46 years old. he's got a lot of runway left will stop julia: he's also involved with the technology and the focus of the company trying to reach out. that's an excellent question and i think it is a
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fair assumption that we will see him land at an interesting place just as mike cavanaugh did, just as jes staley has. he'll winters runs standard chartered. might cavanaugh is the cfo at comcast and that says something. these people get at jpmorgan is perhaps if not second to none, certainly in the same league as that which people get at goldman sachs and go off to do other impressive things. that says a great deal about jpmorgan. what it doesn't say is jamie dimon has trouble keeping these people around. and on that note, bloomberg's erik schatzker. scarlet: the house is set to vote on a republican backed overhaul of dodd-frank later today. we will have the latest on that. this is bloomberg. ♪
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scarlet: this is bloomberg markets. i'm scarlet fu.
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julia: i'm julia chatterley. scarlet: president trump's council will be making a statement just a few minutes. it follows james comey's testimony on capitol hill. theren see the podium where he is expected to speak. we can tell you that according s, the president dispute some of james comey's testimony and says -- let me pull that up. don't want to misquote him as we are talking about legal issues. he did say -- i'm just trying to pull up the headline -- trump never told comey he expected loyalty. that was the main takeaway. comey admitted he leaked privileged information. we will bring you that lines
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when they cross. julia: just in case you are worried nothing else is going on, james comey's testimony is not the only thing. the house is expected to vote on a republican-backed overhaul of dodd-frank. time are we expecting this vote? even if it passes in the house, what element actually survived when it hits the senate? we are talking that the financial health act. isexpected, the the house expected to vote and pass it as soon as 4:00 this afternoon. it's largely going to be a partisan vote. very few if any democrats at all are going to vote for this will stop that is why it faces an uphill climb. there's very little chance of getting much democratic support.
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once it moves over to the senate , the senate of the chairman banking committee will -- he is crafting his own piece of legislation that will make changes to financial rules. billnts to consider this as part of what he is looking at, but he has also said he wants to craft something that is democratic support which a complete gutting of every rule in the financial crisis. takeet: thank you for your and we will be bringing you the headlines when the voting does begin. we will be back with more on today's testimony from james comey, former fbi director. ♪
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breaking news -- the president's attorney is making a statement. i am president trump's personal lawyer. contrary to numerous false press accounts leading up to today's hearing, mr. comey has now finally confirmed publicly what he repeatedly told president
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trump privately. that is that the president was not under investigation as part of any probe into russian mr. comey alsoop admitted there is no evidence a single vote changed as a result of russian interference. mr. comey's testimony also makes clear the president never into attempteded russian interference into the election and according to mr. comey, the president told mr. comey "it would be good to find investigation if there was "some satellite associates of his that did " and he, wrong
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president trump, did not exclude anyone from that statement. consistent with that statement, the president never informed -- in form or substance directed or suggested mr. comey stop ,nvestigating anyone, including the president never suggested go" omey "let flynn he did say to mr. comey "general flynn is a good guy. " ands been through a lot also asked how general flynn is doing. admiral rodgers testified today that the president never "directed him to do anything illegal, immoral, unethical or neveropriate" and never,
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."essured him to do so director coates said the same thing. the president likewise never pressured mr. comey. the president also never told mr. comey "i need loyalty, i he never said." it in form and never said it in substance. of course, the office of the president is in titled to expect loyalty from those who are serving the administration. and for this -- and from before officehe president took to this day, it is overwhelmingly clear that there have in and continue to be those in government who are actively attempting to undermine this administration with selective and illegal leaks of classified
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information and privileged communication. has admitted he is one of these uighurs. today, mr. comey admitted he unilaterally and surreptitiously made unauthorized disclosures to the press of privileged communications with the president. the leaks of this privileged information began no later than march 2017 when friends of mr. that heve stated disclose to them the conversations he had with the president during their january and february 14 2017 white house meeting. mr. comey admitted he leaked to friends of his recorded memos of those can
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indication's, one of which he testified with classified. thatomey also testified immediately after he was terminated, the authorized his friends to leak the contents of those memos to the press in order to, in mr. comey's words, "prompt the appointment of a special counsel." although mr. comey testified he only leaked the memos in response to a tweet, the public record reveals that the new york times was quoting from those the most the day before the referenced tweet, which belies his excuse for this unauthorized disclosure of privileged information, and appears to be entirely retaliatory. we will leave it to the appropriate authorities to do herman whether these leaks should be investigated along
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with all the others being investigated. in some, it is now established the president was not being investigated for colluding with or attempting to obstruct any investigation. as the committee pointed out today, these important fact for the country to know are virtually the only facts that have not been leaked during the course of these events. as he said yesterday, the president feels completely vindicated and is eager to continue moving forward with his agenda, with the business of this country, and with this public cloud removed. thank you. was president counsel,utside speaking, very forceful statements of a half of the president saying there's no evidence a single vote changed because of russian interference. the president is not personally being investigated and the
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president feels completely vindicated following today's testimony by james comey. julia: and refuting the line saying that donald trump asked him for loyalty and expects loyalty. donald trump said he expected nothing of the sort. they say he could have been talking about leaks and that this is not about loyalty over the russian investigation but the leaks itself. so precisely what donald trump was getting at, it's an interesting one here. scarlet: for more, let's go to capitol hill. digest as we go over these remarks on behalf of the president. but stood out for you? certainly the fact that the lawyer said he felt completely vindicated. that stuck out to me because the hearing, in
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mr. comey testified to a number of things that were potentially problematic for the present, including that he asked for his loyalty and tried to squelch the investigation. comey had exact quotes from mr. trump and we saw his lawyer dispute" quotes. he said he never directed or suggested comey and the fbi stopped the investigation. this is a direct contradiction and you have one version from mr. comey and now the president through his lawyer directly conflicting that. now they have to corroborate and speak to other people and the grout who is telling the truth. julia: there are a number of he said, he said kind of things going on here. this whole debate began with concerns about russian interference in the 2016 election and donald trump's lawyer suggested he admitted to him not one vote changed according to the evidence they had as a result of russian interference.
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isn't this something we need to focus on and get to the bottom of what happened in terms of russian interference because we didn't get any detail on that critical point as a result of this statement and james comey's discussion earlier today? guest: it is true the intelligence community has said the russians did try to meddle in the election and the way they did so with hacking certain officials connecting to the election. in this case, they all happened to be democrat. what the intelligence community has never said and what there was no car operation for was that there was never any vote tampering. no evidence that happened. the interference and meddling andto do with stealing revealing information connected to people in the hope that it would sway the vote. i would draw a distinction between that and the issue of tampering. scarlet: thank you. julia: joining us with her
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reaction to the testimony is congresswomantic jane harman of california. thank you for joining us. you were listening in to most of the testimony and heard the statement. what is the standout item here for you? phrase heoved your said, he said. this is not sufficient. this is reality tv. this is not a serious investigation yet. what is happening behind closed doors in the senate intelligence committee may make a difference, but what we have to understand is counterintelligence, not just whether the president feels vindicated. whether there are in fact, whether in fact there was some evidence of collusion between the trump campaign, not necessarily the president himself, and the russians and
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not what an vote was changed means maybe not one voting machine was changed but maybe votes were changed by the selective leaking and onslaught of information, all negative, about hillary clinton and why the way, from james comey's own announcements which i thought were totally improper last year. first that she was not going to be charged with a crime but a public lecture which was way outside his purview and in the campaign, the issue of the anthony weiner hard drive, which made no sense whatsoever. this statement suggested look, i would like to know what happened and there are people in my satellite involved here, i would like to know that. based on what you were saying about hillary clinton, do you think james comey discredits himself even before this happens? there are three comey
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chapters. the first was sensational. he was in john ashcroft's hospital room -- hotel room blocking some people from the justice department and bush white house from illegally extending a surveillance program when ashcroft was incapacitated. i gave him high marks for that. last year, his actions three times where i thought way outside his purview and not professional. this year, mixed bag is my own reaction to this. but let's keep our eye on the ball. what do we care about? we care about whether there is a counterintelligence problem and collusion between the trump campaign and the russians. we will find out those answers from bob mueller. i want to say one nice thing about the senate intelligence committee. i thought it was nice and not partisan. all members came prepared with questions and he was quite
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candid. performance, i would give this one solid marks and it is in the tradition of serious investigation by congress, in watergate and iran dome, and some of the other important investigations in the past. said, he said,he and if we don't get tapes on this, it remains that kind of narrative. i wonder what request there is that the could be -- that they could ask the president to testify. is their present -- is there precedent for that? don't think so. and i'm not sure where that would go. i think that if for any reason, and there is no reason this minute, whether he can be indicted or prosecuted, he could be interviewed and would have
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constitutional rights to invoke the fifth amendment. scarlet: i think it is important to member that the senate is investigating whether there is collusion between the trump campaign manager russia leading up to the investigation, but i wonder to what extent has is widened into something else? is it an investigation into -- leaking linking as suggested? i started by saying we live in this reality tv moment. it seems to me that senate intelligence committee which should be investigating counterintelligence issues, that it mandate to broaden the inquiry into whether president trump did something wrong. congress is a political organism where the voters are interested and i'm sure the
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voters are interested in this. but the way to investigate -- the one to investigate this and quiet and cerebral rooms is bob mueller. i think at the moment, we have not learned that much. craddickformer, congresswoman of california, jane harman, thank you so much. we will be speaking with a retired fbi agent to get the intelligence community hospira specter of on james comey's testimony come in next. this is bloomberg. ♪
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julia: this is bloomberg market. i'm julia chatterley. scarlet: i'm scarlet fu. julia: let's head to julie hyman
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and today sectors by the report. talking earlier -- this went to supporting the overall markets today, we have the financials like spider etf moving up, i'm showing the today chart because it has been a considerable move over two days, up over 2.4% and it is a spread out move on different types of financials and different types of banks. a lot of regional banks doing likeand some trading firms e*trade and big banks as well, jpmorgan and like doing well also. it seems to have to do with what is going on in the rates market. at the top, we're looking at the the 10 year yield has been trending lower but over the past couple of days, there has
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been an uptick. it appears that is what is helping the financials. pretty consistent at about .6. the movement upward we have seen in the financials today means that it is above the 50 day moving average. essentially means there is a momentum breakout above the recent trend. it's notointed out, the most heavily weighted, but it is significant. thank you so much. let's get another perspective on today's story, the testimony of former fbi director james comey. richard burr said the national intelligence officer dan coats and admiral mike rogers will testify in a closed session next
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week, so lots more to come. but joining us from salt lake city with hers -- with his perspective is a retired fbi senior official who served as rector of counterintelligence at the office of director of national -- national intelligence. he was in charge of two fbi field offices. thank you for joining us. one thing i wanted to start with mr. --realization of from mr. comey's testimony that he leaked information to outside sources. he leaked information to outside sources and friends. esther trump's lawyer has suggested the government should perhaps look into that. is that concerning given the up inons in the lead regards to hillary clinton and he is now leaking
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information to outside sources? : the disclosure of that information, not at all. the statement that it was classified is false. it was not classified information. the explanation was pre-clearcut in terms of why he did it and forward what reason. that is what stands out to me. counseld that special to be named. it makes a lot of sense in hindsight that in terms of the concerns there have been about the leaks out there, it is not classified information, then it's not something the fbi will be investigating. it is sensitive or in -- sensitive, that's another issue. ahead and try, but i think jim was very clear about what he did and why he did it in terms of the information that he shared that it was his recollection. at one point, james comey
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said maybe it was the cowardly way, the fact that he did not push back more. , he felt under pressure, why didn't he say to the president this is not appropriate? we should not be in a room together. why are you asking me that? if he was concerned, why didn't he go to senior figures in the justice department and they guys, we have a problem here? frank: those are great questions and i think first and foremost, jim was the director of the fbi and worked for the president of the united states. it was another question asked by one of the senators in terms of taking the telephone call. when the boss calls coming answer whether you want to or not. when he is in the oval office and the discussion with dianne feinstein, i thought that was
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another illuminating moment. that he wased hearing the things that he was hearing. they were way outside the norm when it came to his experience. he had a long and stellar career at that level dealing with numerous administrations on these kinds of sensitive issues and he is hearing for the first time from this president. in that regard, he was stunned. when he said that was cowardly, that is what essential jim comey. he is not captain courageous. he's a human being like the rest of us. he had concerns about some of the things the boss was saying but, in terms of reporting to anyone else, this was an ongoing investigation. the senators alluded to the fact that you should be reporting violations to the law, who does the f guy director report to when he receives a violation?
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.e can report it to himself i think that's what he did when he talked to the senior leadership. people who look at this and say he put his own job and remaining in that job for the institution of the fbi and institutions of that, how do you respond? frank: clearly untrue and you heard that in his opening remarks when he talked about all the things that mattered to him most and the fbi and the men and women who work in the fbi being paramount. the fact he cared so deeply about us, the fact he worked so hard to support us, the fact he did everything he could to protect us and our independence, that completely discounts that point i think. scarlet: thank you for joining us for your perspective. frank montoya, speaking to us from new york city. -- from salt lake city.
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from new york, this is bloomberg. ♪
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julia: let's just give you a quick look at how the markets are trading. we have taken a bit of a tilt lower in the last 30 minutes. .1% for the dow. oil also giving up some of its gains in the last hour, relatively unchanged in the session. scarlet: we should mention at the same time, we have yields rising. not necessarily seeing the other side of that trade coming through. we will continue to monitor the market as we head toward the close. coming up, jpmorgan coo matt sainz is out. this is bloomberg. ♪
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scarlet: welcome to "bloomberg markets." julia: we're live in new york. over the next hour. we'rehe top stories covering. over bloomberg and around the world. politics, fired fbi james comey complicated communications with president donald trump in view today. the ousted intelligence told fireders he think he was because the way the russian investigation was being conducted. in marks, u.s. equities are steady on the heels of comey's testimony. business leaders told bloomberg their concerned about the noise in washington.
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>> that's one of the concerns heard. neiman marcus went private twice. now.re really struggling retailerou with a debt. saddle with this the nordstrom family cares. it's their name on the door. how much do you trust the management team. that's a big question here. beenet: private equity has looking at retailer for a while. they've come and they bring in specialist. they use that cash flow. can you give us example where worked out for the better? >> there's a lot of examples worked out.aven't you have to go back in time for that worked out really well. certainly all the ones that happened recently has been a disaster.
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piled onhe debt they these companies which has made their job trying to turn themselves around so much harder. scarlet: especially with the head winds. becomesly, this debt albatross around their neck. you have to be concerned with nordstrom. they would have to take on a significant amount of debt. help.n get financing it's still a lot. scarlet: just to point out, i'm at nordstrom debt here. theretical sale value of company. it has a 7.3 billion dollars markcap. debt here is $2.7 billion. you look at the debt distribution there, you can see there's a big chunk of it due in in 2024.once again >> we did some analysis, you'll be looking at adding $5.5 billion more of it. littlearts to make you
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clost phobic. julia: just talk around that. is. my other question will be, are we going to see more of these in the sector? do think it's in a loot better position than some of the other department store and specialty retailers that are having a hard time. you have to wonder nordstrom managers saying now is the time buyout.is they see that this is going to be a very challenging time going forward. they would prefer to make these publicf changes out the eye. -- let's say say nordstrom family can take this family. mentioned nordstrom.
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well. dope -- done well. they went the dot-com route. in terms of operational strategies? >> they have a lot of options. according to people i spoken with. they can expand the rack to a lot of markets. bit.ruggled a little it still drives a lot of business. their theory is you start remark -- rack, shop nordstrom full time. it's dangerous now to roll out ofartment stores in a lot malls. there's going to be a nordstrom in new york city in 2019. i think not in new york city. europe. go to it's interesting to see what strategies they could pursue. forle do think there's room them to grow. room for them to pull margin out .he business scarlet: we have a map. looks at nordstrom
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location. in the bright yellow, stores.der >> it's about the short interest that piled into this sector. fascinating. 28% of the free flow according to market data, nordstrom dealers is 47%. there's going to be some times in the market. oft's quite painful for some these guys. >> one thing that's been interesting, short interest hasn't really come down on this deal announcement. which tells you that some people thisoubtful whether or not will get done or worry about like.t might look chat.t: brilliant julia: let's get check of the
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headlines. with mark cumpton. washington. mark: president trump attorney kasowitz stoke to reportsers. he said president never suggested that he let go the investigation of michael flynn. mr. comey's testimony on the today made clear the president never sought to impede into attemptedon russian interference in the 2016 election.al >> the president feels completely vindicated and is eager to continue moving forward with his agenda with the andness of this country with his public cloud removed. mark: mr. kasowitz added the president never pressured mr. comey. theng his appearance before senate intelligence committee today, mr. comey discussed his conversations and meetings with president trump in the days before he was fired. the firstublicly for
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time since my may 9th dismissal. sayingn by administration's explanation for his firing concerned him. >> the administration then chose to defame me and more importantly the fbi. by saying that the organization was in disarray. poorly led. that the workforce lost thoseence in its leader. were lies plain and simple. mark: comey also told the notestee he took detailed because he felt the president would lie about the nature of the meetings. have arrested six people on terrorism offenses. three were arrested in last weekend's london bridge attack. the other three weren't. eight people were killed in that attack. the anti-protest in venezuela with one teenager killed and over 190 injuries reported today.
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president nicholas government has been accused of scaling into importing food and medicine while mismanaging the company funds. opposition plans to march at 5:00 wall street time to honor protester. global news 24 hours a day, than 2700 more journalist and analysts i'm mark crumpton. is bloomberg. scarlet: thank you so much. up future of the leadership at j.p. morgan could air. in the joiningric wasserstrom us. this is bloomberg.
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scarlet: s there "bloomberg markets." julia: it's time for the bloomberg business flash look at biggest business stories. verizon pena hoo cleared the to $4.5 billion .eal the transaction was announced almost a year ago and expected june 13th. according to person familiar planshe matter, verizon yahoo!.ng 120 jobs from to sellbread pharmaceutical unit to equity .artners they trying to pay down only in debt.on it occurred during the deal making. urban out fitters shares plunging. warned second quarter dropping in the high
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single digits. shop turning more and more to ecommerce. the retail first quarter sales also fell. lobbying.roup is that's business flash update. a quick let me give you mark check. we saw stocks fall to session minutes ago. when you look at how the major fairing.re it's little changed. we thought today would break the jam. it hasn't done anything to that effect. julia: the testimony with james comey, u.k. vote is going to the general election and the european central bank. an interesting day. cook of banks, j.p. morgan matt zames is leaving the bank. joining us for a look what this
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means for j.p. morgan succession securities analyst eric wasserstrom. great to have you. a big glass ceiling for j.p. morgan. the form of jaime dimon. >> j.p. has been many wonderful and incredibly talented executives have come out of j.p. morgan. samegine that the situation might be a similar one where he got to a very senior level inside the organization that probably not much in the horizon. julia: eric wasserstrom was detailing for many senior gone on toleft and other banks. zamest what is in matt future financial what do we know executive?zames the >> his background is primarily atide the investment bank
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j.p. morgan. many investment bankers or -- it's very broad based. it ended up in senior manipulate otherons in organizations. even -- probably lots of i speculate. julia: what do we know about the that jaime dimon have with his senior executive? is there a read across from all left beyond this idea that waiting for jaime long to retire will be a time. he's a pretty difficult man to work for. >> well i don't know about that specifically. think more brawle broadly if yk at the organization and the of leaders come out of that organization it's a place very rigorous culture. a culture of execution and a culture of excellence. that makes for an excellent ground for executives across many industries. demand.hey're in
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scarlet: do people not want to anymore? a u.s. bank mike cavanaugh is snow at -- cfo comcast. maybe big ceo at a bank is more trouble than it's worth >> maybe, but i don't think so. some years ago. one of the things that may run to that view is the length of tenure to some of the current executives. the worst.through thatutlook is better than was. to the extent that the economy evolve. they need to pond to. it's probably an exciting time executive.ior scarlet: those that remain as a future heir apparent? >> they have to have a deep bench. all the executives that you all veryed earlier are respected.
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deeply talented individuals. i think individuals who have long history there even the ones who come from other institutions gordon smith has. but i think feel like they've thereoad base experiences which prepared them for bright futures. julia: thank you for your insight. scarlet: still ahead we got option tradernd is taking a look how the trade the utility sector. york, this is "bloomberg markets." ♪
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>> joining me for toe's options kelly. is kevin kevin, as i pointed out earlier, continues to be nowhere. we talked about earlier in the week, is something you have
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picked up on. it's volatility of nasdaq. we chart of that on the bloomberg. volatility versus the vix. trended upward. away from that? >> it started to pick up after earning season. season compresses volatility people are focused on corporate earnings and instinctses. when you get in the macro environment, that's when volatility come back. the nasdaq 100 has two to five high inner volatility than the s& s&p 500. that's in the nature of the construction of the index. because these are mostly cyclical stocks. netflix, tesla and whole from is in there aside tech stalwarts which have apple and microsoft and google. nature tot defensive
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it like utilities. higher.hy it should be what was more impressive, actually on that chart if you look, you saw actually the the nasdaq 100 come below one compared to s&p 500. that's telling showing how moving in tech. that's i think the more telling that when you look at chart. >> not so much where it is now but where it has come from and where it has been. you mentioned utilities, you mentioned defense. happens to behat underperforming today as we see rates pop up a little bit in today's session. utilities tend to move inversely. you're looking at utilities. xlu. why? >> i looked at the options trading market earlier today on that tracksh is etf the sector of this utilities. you saw there was 8.5 amount
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times being traded versus the calls. next week we'll be hearing the fed come out. a way to actually head your bets against the utility sector. still relatively expensive compared to the financials. it's actually cheaper when the fed raised last time. before when this the fed raised rates. you had volatility over 18. now implied volatility is 12. great time to hedge should week.ing happens next you want to go to july and just put.he $53 that's it for 72 cents, you're protected here. trading about 53, 50. you'll have that protection out to july. case some things do percolate after the fed, you'll have more play out.his to >> i'm curious, is this also call bynally a yield extension? do you think we'll not continue
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been seeing've yield trade up >> it's pretty interesting when you look at the ten year happening inwhat's the stock market. we know the fed is actually stock market. they've talked about it in their minutes as well. the stock market up on the year and they want volatility down. it's perfect time to keep raising rates. much.y, thank you so kevin kelly, back to you. scarlet: thanks so much. still ahead the house is set to on the republican backed dodd-frank overhaul. bill got the future the and the implications for the market. ♪.
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mark: it's time now for first news. director james comey today gave his heavily awaited testimony on capitol hill. talks withght on his meetings with president trump and the days prior to his
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dismissal. comey said he hope to reveal details he felt it would speed inthe appointment of a special counsel in the investigation of russia but stopped short of whether he felt president trump tried to interfere. me toon't think it's for say whether the conversation i had with the president was an effort to obstruct. i took it very disturbing and concerning. i'm sure the conclusion the special counsel will work anards and whether that's offense. mark: comey told the senate tookligence committee he detail notes of conversations feltse he honestly mr. trump would lie about the nature the meetings. personal attorney said he never directed mr. comey stop investigating anyone. that included michael flynn. speaking today in response to comey's

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