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tv   Bloomberg Markets Americas  Bloomberg  June 9, 2017 12:30pm-1:01pm EDT

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♪ vonnie: from bloomberg world headquarters in new york, the top stories and around the world we are following. u.k. prime minister theresa may firm on brexit as she battles to stay in office after a failed election gamble. the english pound sliding after conservative party losses area plunging into uncertainty days before the brexit negotiations are due to start. and elsewhere, a look at how media deals are impacting the public relations. may vowedle theresa lead the u.k. out of the european union. it comes amid calls from within her own party to resign. let's get the latest.
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on number 10 downing street, it is not quite clear who their tablets -- it is not quite clear who didn't have it -- inhabitants of number 10 are next week? nejra: we had breaking news. after a stunning defeat for the conservatives in terms of seat losses overnight, theresa may moving swiftly first to form a coalition government or try to, but also tell form a cabinet. we had breaking news, the office confirmed the five top cabinet positions remain unchanged, that is the chancellor, philip hammond. home secretary rudd, boris johnson, david davis and also defense secretary michael f allon. talked outside of number 10 downing street and within that statement, she talks about the fact that occur
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several gives have come to an agreement with a northern ireland -- that conservatives have come 20 agreement with a northern ireland's party. it is unclear what form is the agreement will take and it looks to be a less formal coalition than the ones between the conservatives and dems in 2010. vonnie: you mentioned stability would be a center point here, what happens next week? how does theresa may convince her party to keep her at the top? nejra cehic: that is a great question funny them because theret -- vonnie, because have been called for a theresa may to resign. she has not done so yet. next, shef what comes did say in her statement and that she is sticking to this
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timetable of the brexit negotiations and dolls are due to start in 10 days' time. the big question is what shape they will take. -- and as they are due to star 10 days' time. ireland,rget northern the voters did vote to remain. on the other hand are the people she doesven the fact not have the majority and she does not have her mende, she may face more pushback from the hard brexiteers. there are more question about the form it will take. vonnie: nejra cehic, thank you for that. this andn to the mark how they are digesting this news . if we do not have enough, investors are taking the election results in strides what all of the indices in the u.s. at a high. the fed and the bank of england and bank of japan as swiss national bank will all meet.
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a strategist joins us. digested itrket has without being royals in any way, can anything ruin it? >> next week will shift it's a central market policy and how much we might have in the next 12 to 18 month. the key when is the fed not just whether they raise interest rates for what they do to the balance sheet. that is one of the key elephants in the room. how they are going to be drawing the balance sheets down? vonnie: do you think there will be an actual discussion? don't think it will be a battle plan drawn out right away but maybe more hits about what they will do to the balance sheet. fedave had comments from officials but i do not think we
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will get a clear outline until later. vonnie: we have a broad outline or signals, but if we got something even more detailed, would that could do something to the market, what will be the catalyst to kick of this market off? alex dryden: there are three bits of information, when it will stop, when it may come to an end and how quickly it will go about reducing the balance sheet. we think we know when it will stop, end of this year beginning. and the number is the $5 trillion added to around $2 trillion. the question we need answers to it where it will impact into the market is how quickly the fed will reduce the balance sheet? what we believe is they will start off slow and let the markets get used to it and then at adjusted. vonnie: hard to digest the events of the past week or so whent was a difficult time
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it comes to uncertainty with the u.s. president, not knowing what he was going to do and what timetable. the markets do not seem to care. we are finishing in the green. does it ever come to an end? what catalyst? alex dryden: we see the market shifting from fiscal policy to over driven more by the upswing a global growth. we started to see the rest of the world outside of the u.s. road at a faster pace than over the past few years and that his feet -- feeding into the market. vonnie: there are risks. china is risky. other emerging markets dependent on oriole are risky. alex dryden: they're always risks. china is a concern. -- other emerging markets dependent on oil are risky. alex dryden: it is at the forefront within the region which is why we do not the it
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bubbling at this time. maybe something tell watch in 2018 and 2019, markets are comfortable. vonnie: as far as jpmorgan goals, what are the best spot -- goes, what are the best spots to the? are dryden: we think there plenty of upside and the international equity space. europe is one area we would be looking at. political class beginning to clear. fundamental recovery in the region. eurozone pmi at 57. vonnie: were specifically? alex dryden: the euro denominated area outside of switzerland and the u.k., actual europe and the eurozone. seee are the areas we will the most upside and the most room to run, unemployment rate is very high. vonnie: what you looking at? indexes? alex dryden: jpmorgan, we are
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looking at the stock picking environment. areas we like, financials, for example. high yields and assess potentially as the ecb titans over the next 12 to 18. htens over the next 12 to 18 months. the boost of the bullish sheet is where we could see opportunity. vonnie: alex dryden at the j.p. morgan asset management. a look at first word news. dismissssian lawmakers the testimony of former fbi director james comey as insignificant as said president trump fired him to impede an investigation into russia's ties into the trump campaign. and the conclusion that russia tried to meddle in the polls. a russian political scientist saying they have no effect in
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russia. what are the scientists telling reporters that it has been tried to blame the russians for what is going on in america democracy. more of the story in the next half hour. -- innews on this friday other news today, we are going to continue to follow the british election, the results and last night we are friday. theresa may is trying to find a government and may have to reach out to some of the opposition to do so because they are now in the minority in the u.k. the european union president donald tusk given his reaction to what was going on in the u.k. today and concerns about brexit and those concerns are being echoed across europe. we will follow that in a few minutes. global news 20 farms a day powered by more than 2600 journalists and analysts in more than 120 countries, i am mark crumpton. this is bloomberg. asnie: fantastic round up
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always. coming up, founders of wall street. changed dealmaking has in the wake of the election of donald trump. more highlights from that interview. this is bloomberg. ♪
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vonnie: paul verbinnen says the formidable gatekeeper and crisis &ammunicator is behind many m deals pretty our deals reporter caught up with the founders and ask about the current cycle and
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how they plan to grow their business. take a listen. >> it was formed 25 years ago and the strategic communications firm and we have seven offices, about 50% of our business is m&a transactions activism. inie 5% of our business crisis -- 35% of our business in crisis on everything from ,nvestigations to power outages really quite broad. in the middle is our clients that we work with on investor relations positioning that we have had for many, many years. >> from a reporter's standpoint, you are in intermediary for clients who hire you and reporters. how has the world of you advising clients changed as the world of media has changed more particularly in recent years? george sard: the biggest change is the compression of the news cycle we live with.
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it used to be that we would've mel at a press release of a deal we were melted and it wouldn't show up tomorrow morning. not everything in a 24-hour news out a-- we would mail press release of a deal and it would show up tomorrow morning. -- now everything is in the 24 hour news cycle. paul verbinnen: 25 years ago, we did not have internet or the cell phones. that technology that the challenged big media is also made it possible for people to go directly to their constituency. are in the news every day with the trump administration. how often do you feel like you know where the source of a leak comes from? are you able to share that information with clients? >> the place i would start to say is leaks are prevalent. we have done analysis to show the percentage of major deal
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leaks is up significantly in the last five years. oftentimes, it is hard to figure out where a leak came from. you never really know for sure. you can make good gases in terms of whether there was a motive or not. -- you can make good gases in in terms ofesses whether there was a motive or not. were a book was sent to 20 private equity firms and only three are interested, a link is -- a link would be from the other 17. >> has anything changed in the way you have given advice on a deals, particularly deals about to be announced since donald trump has come to power? are you stressing a deal may create more jobs than six or nine months ago? >> i think that is true. i think that the tendency to
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focus on what washington might care about has been something that has grown over the last 20 years or so. 25 years ago, washington was a bit of an afterthought in announcing a deal. as the administrations have then progressing, or focus from washington or what deals are being done and that is the happening of the last two or three administration ramped up under trump. wherether situation significant part of your synergy coming from closing american manufacturing facilities to move somewhere else, that is not something you would stress in the past and conversely, u.s. jobs that are being preserved or created is now an important message where it might have been secondary in the past. >> a typical deal, who is driving the ship when it comes to figuring out the way you want to message? our most ceos and boards leading you dictate or are you, this is
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how you should do it and the decision is being made by the ceos and the boers even what you may not agree with? >> the ceo and the board has a strong view on why they are doing a deal and they know what they want to communicate, what they want to say and why they are doing it. sometimes you have to spend a fair bit of time to make sure the message is crisp and anticipating the kind of questions they will get to because of the deal and they are inpared to a dress them real-time -- address them in real-time. the ceo have to know why he is doing it and articulating not just to the broader community, his border first is where it usually gets pretty big. >> you can always tweet to the general public, i suspect. >> and one of the things we do is outside advisors who know the company well but is not living there, the rude question that the ceos will get that sometimes
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their own people are afraid to ask. thatit is our experience if you do the right to job, you should be up to anticipate all the questions you will get and spend time you answer them. you went through so the interesting because you were the target of an acquisition. you sold a large minority stake to golden gate. i am. why did you do this to expand the firm? so you guys can take money off the table? >> there were a number of reasons. probably the most important reason is we saw how fast the world has been changing, the digital world, video world, the way people are communicating. we have been investing out of ourown pockets and partners' pockets to advance the business. we had grown until four or five
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offices by then. we wanted to expand the firm because i client wanted us to be in different locations and offer different capabilities. we decided we needed to move faster to be where the puck is moving. >> golden gate was a long-term client and we knew them very well. they were not a nameless, faceless firm. their money is permanent, now looking to raise a fund, a long-term horizon. we felt that we knew them well and they knew as well and they did in oppressive deal of digital -- diligence. >> they have been incredibly supportive. they are looking long-term as george said with permanent capital. if they are interested and incentivizing our partners for the long run. we are is energized now as we were 25 years ago. seven offices globally. we are getting opportunity.
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>> 25 years, how much longer do you 2 individuals think you will be doing this? > as long as george will let me stay. the irony is we were really jazzed about what is going on. , for the foreseeable anure, at the same time once institution that will outlive us. vonnie: george sard paul verbinnen and. above the sharp corners. this is bloomberg. ♪
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vonnie: u.s. stops touching all-time highs with the tech resilient to political risk these days. saiduest, glen kacher
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there's opportunity and the smaller business names. let's start with uber's difficulties, a lawsuit involving 20 people and more pi led on top of labour. glen kacher: they have been on a run of bad luck. and it has snowballed but underneath that is a company that is incredibly innovative and that provides a tremendous service to its customer base. , it seemseadership like to me that every great technology company goes through a challenging time whether it was google when it was coming up and got painted with a brush of being a brash company and i think it takes time for companies to mature into double down on top leaders and i think we are starting to see those first hires of the management team that's likely to be in place, the four management team,
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not that travis is going anywhere, and place for the ipo. vonnie: do you think an ipo is coming in when will it be? glen kacher: nobody knows for sure. i think there's a possibility 2018, thate uber and is speculation that i hear in silicon valley. vonnie: what about facebook? , arenue to see is growth you still an investor or out of facebook? glen kacher: we are. a very large holding for us. facebook is an unbelievable opportunity right now. we are seeing the average american spend about half of their internet time on social media. and, then on top of that, you look at what percent of the advertising dollars that gets spent on the internet are from social media. it is around 25%.
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there is a total mismatch between usage and dollars. vonnie: one of the stories we were reporting on is an automaker, does it happen with facebook and an automaker combining? glen kacher: facebook is trying to take their content and in a really important part is video content. they are trying to show that everywhere the consumer is. the consumer spends time at home other tv and they made an effort to build an app for interactive tv's. it would not be surprising to see them build a facebook video app to be accessible in a car, probably not to the driver but to the passengers. timee: we do not have much left. i want to ask about china and the difficulties because it decided to not let the currency we can -- we can. -- weaken
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you are very invested in technology companies in china, any fear? see the new we economy, the new service economy in china is incredibly strong. some of the older manufacturing industries are going through a challenge. the economy is going through transition. the internet is absolutely taking off. you just saw yesterday at the malyst today, alibaba, jack with a huge growth forecast. i do not think they have a problem. the debate we will have to get more time you are -- vonnie: we have to get more time you are in town. glen kacher. this is bloomberg. ♪
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>> from bloomberg's world headquarters in new york, i'm david gura. welcome to "bloomberg markets." here are the top stories were watching at this hour. president trump's lawyers filed
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a complaint with the department justice over information fired fbi director james comey claimed to have leaked to a reporter. calls toay response to resign after her conservative party loses its majority in parliament. we talk with the global ceo about the role the private sector could play and improvements. ♪ the day after fired at get a director james comey testified before the senate committee, president trump -- lawyers for file ant trump plan to lawsuit. for more on the story and the week it was, i will bring a bloomberg's white house editor. he's our chief washington correspondent. alex, let me start with


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