Skip to main content

tv   Bloomberg Best  Bloomberg  July 2, 2017 5:00pm-6:01pm EDT

5:00 pm
anchor: coming up on "bloomberg best," the stories that shook the week in business. the gop postponed a vote on health care reform. european markets try to stay in sync with central banks. >> the markets have reacted very strongly. 's comments suggest that august 3 is going to be quite a tricky meeting. anchor: italy commits billions to save two banks. the country's finance minister explains the deal and an exclusive conversation. >> it's not a bailout. everything was done by the
5:01 pm
rules. guest: -- anchor: the u.s. welcome trains partners -- welcomes trade partners, but also warns them. >> there was a notion of china taking on the mantle of globalization. >> there is tremendous potential for india. >> [indiscernible] make sure that companies are making investments based on the inherent value of the investment, not on their particulars. anchor: it's all straight ahead on "bloomberg best." ♪ anchor: hello and welcome. i'm scarlet fu. youris "bloomberg best," weekly review of the most important business news, analysis, and interviews from around the world. week began with political maneuvering and the u.k. where
5:02 pm
in battle prime minister theresa may moved to shore up her parliament by moving her at -- while moving her agenda forward. prime minister theresa may strikes a deal to keep her grip on power. northern ireland ireland's democratic unionist party will enforce her minority government on key votes. >> it gives us some certainty, which is what we should be happy about now. on thursday, parliament will vote on the legislative program she unveiled last week. now with the 10 lawmakers from the dup, she should be able to carry that through without some difficulty. ago,r: just a short time the impact of the deal on brexit negotiations and the future of eu citizens in the u.k.. >> mr. speaker, this is a fair and serious offer. our obligation and the withdrawal treaty with the eu will be binding on the u.k. as a matter of international law, and we will incorporate commitments into u.k. law guaranteeing that
5:03 pm
we will stand firmly by our part of the deal. >> there are areas of compromise. the big sticking point is likely to be the power of the european court of justice after brexit. the eu would like it to continue to have a say in british law, creating disputes about citizens rights. the u.k. would like to rid the british of the ecj. there is no role for the ecj to play the on brexit. obviously that is a big area, and there are others contained in this document. it is going to be something that is negotiated in the next few weeks. a ransomware to attack has struck firms around the globe. the virus known as petya locke's computers and demands $300 in payments to gain access. wpp and adia company
5:04 pm
danish shipping giant have also been struck. the attack is similar to last months rent some strike, using -- last month's ransomware strike. , itsis invention today main mechanism force -- mechanism for spreading is a leak in essay exploit -- a leaked nsa exploit. that is not the only mechanism that the infection uses to spread, but that is the primary mechanism. it is a reminder to companies that just because the earlier infection was stopped, thanks to some careless coding by the hackers, doesn't mean that the future ones will be as easy to stop. it looks like the attackers took some more care in preparing this set of malware. virus advanced from russia and ukraine, went through europe, ended up in the u.s.,
5:05 pm
with reports it is moving through india and china now. >> so far there hasn't been that widespread of an impact in asia. i think that is partly because there isn't a stringent requirements on asian companies as there is in other parts of the world. anchor: senate republicans have decided to delay a vote on the health care bill until after the july 4 recess. at least five gop senators have said they won't even back a procedural vote on the measure that was supposed to take place this week. >> vice president mike pence in capitol hill earlier today, trying to muster enough votes for this health care passage. at the end of the day, the numbers just didn't add up. >> this is a major setback for mcconnell. he did not expect it to pass -- expected to go this way. he expected it to pass quickly. he's still got room to maneuver, some cards to play, and i think
5:06 pm
he will be pulling out all the stops. the name of the game for republicans is that they remain energized and the left doesn't just swarm them with the activism. anchor: we are getting the headlines for the second round of the banks of the federal reserve stress tests. capital one, the credit card issuer, has conditionally passed the stress test. they got the but it must resubmit its capital plans. it is not a clear passing. >> every time they do this, the fed is a little vague on what they find fault in. its prophecies and data collection and all these other systemic, how they look at their risk, so they mention the same things at how they are looking at risk. they mention one of their biggest, most important material businesses they weren't looking at the risks properly. even with the conditional, it is a pass, and they're going to
5:07 pm
increase their dividends. >> the big banks have more than enough capital, and lenders unveiled how they are trying to double dividends. , the nation's largest lender, says it is boosting its dividend 12%. >> i think the banks for a long time have thought that regulators held way too much capital relative to the risk involved. the first of the opportunity they get to return capital to shareholders, they're going to do it. >> the symbolism is that the pendulum is probably swinging away from tilde of capital and back towards bringing those capital ratios down. the fact that the numbers suggest banks are going to pay out all of the -- payout almost all the money they are projected to earn over the course of the year kind of tells you that banks are ready to start reducing the equity in the equation try and boost returns.
5:08 pm
pretty good for people who own the stock in those banks. shares in blue apron made their public debut thursday, but the stock gave a muted performance in its first day of trading, literary -- literally unchanged by the end of the session. they lower their price from $10 a share from an initial range of $15. a lot of this has to do with amazon and whole foods. looking at the trading, a close at $10 a share with some aftermarket trade at about $9.95 below the ipo price. it seems like there is a bit more investor concern baked in, as well. week, market story of the their worst week in more than two months. >> i think the bond market has been largely telling us we are going to be in a modest
5:09 pm
inflation environment for quite some time. i think it has also been telling us that six hikes in two years from the fed is a headwind for the economy, not a reflection of an accelerating economy. for us, stock valuations are a little stretched here. we looking for the market to finish this year for the 6% lower than where we are right 6% lower than we are right now. >> the 100 most expensive stocks in the s&p out of the 500 have only been more expensive relative to the best of the market in 99. see auld easily significant correction in those. that is where all the capitalization is. there's a possibility of that 5% or 6% drop, but we might have seen the beginning of that in the last two or three weeks. that is the beginning of what the trading has looked like. come as well to
5:10 pm
review the week on "bloomberg best," italy arranges the rescue of two struggling banks but insists it is not a bailout. about the new reality of protectionism and how they are working around it. and more on the weeks top -- more on the week's top business stories. >> a rather long wish list we saw coming out last night saying they should make acquisitions. anchor: this is bloomberg. ♪
5:11 pm
5:12 pm
5:13 pm
5:14 pm
5:15 pm
♪ is "bloomberg best ." let's continue our global to her k's top business stories. anchor: google has lost its bailey -- it is regulatory battle yet with a fine following
5:16 pm
an investigation into its shopping service. biggest ever competition find from the european commission, doubling the previous record handed to intel and 2009. look at amazon, they are doing incredibly well. ebay, likewise. found and studied intensively with 5.2 terabytes of data is that there is a glaring -- a very close relationship between traffic and revenue. what you see is that google has taking an advantage for its own shopping comparison on the cost of its rivals and been able to do so by misusing the dominant decision in general search. that is the key of the case. italy has approved emergency rules for two ailing euroscome on a 17 billion
5:17 pm
to the lenders. on friday the european central bank declared the lenders failing are likely to fail, and that both would be wound up under italian solvency rules. what does this tell us about how lenient the commission and the eu are when it comes to bailing, and what does it mean for italian banks? guest: first of all, we have to say that the bailing laws make a lot of sense. everybody believes it is a better way to go forward. i think you have to get to a starting point before you can then actually apply those across the whole marketplace. i think it is really clear italy has its own idiosyncratic problems. debtholders,nior and the eu is having to get to this point in time where they can say, for now on, it is bailing's, and this is what we see here. anchor: for car owners, it is
5:18 pm
good news because it does mean that the company will continue to operate and produce the airbags that are needed to replace those. the takeover by key safety systems means there will be some new investment in the company in order to produce the massive number of airbags needed to replace the faulty ones. good news foress them, and as well for companies that have all kinds of liabilities with takata. now that they are then crept, -- that they are bankrupt, there will be a big gap between what their liabilities are on the cash they have on hand. that will have to be worked out in court. anchor: nestle is coming under for its from activists stake in l'oreal.
5:19 pm
the rather long wish list we saw coming out last night saying they should make fault on acquisitions, but at the same time they should shed the performing assets. it is a huge company with 2000 brands. there are lots of areas where they could probably improve, and loeb said as much. he says there are many opportunities, and there is rarely a case where there are so many areas where he can improve. anchor: nestle has announced a $20 million share buyback and is looking for acquisitions. >> is it nestle buying time? is it nestle giving and or pursuing a plan? >> it is quite dramatic on the shores of lake geneva two days after dan loeb bought them. it looks like they are moving aggressively to respond.
5:20 pm
in the how long this was works, we don't know what this point, but clearly they are signaling a willingness to engage with the activists and other investors. anchor: shares of the rental car company avis jumping as much as 21% after it reached a deal with a self-guided -- the self driving car unit of output that -- unit ofalpha alphabet. >> is a pretty small deal. avisw people joking that is just changing the oil for the cars. it does show the reason that ertz stock jumped as well. it could be a big business in the world of driverless vehicles.
5:21 pm
apple is leasing suvs from hertz , the traditional fleet management unit. that came on the heels of the avis report earlier today. we put out the apple story this afternoon, and as you know, shares are moving quite a lot on it. anchor: the bank of england governor has planned, all of with his financial stability team, to increase capital requirements for u.k. lenders by 11 point or billion pounds to tackle risks posed by consumer credit growth, and prepare for the uncertainty of brexit talks. could this be a tightening of conditions today, policy today? >> in a way.
5:22 pm
as many big split on the monetary policy committee lately. by raising the capital letter, that -- the capital buffer, that tightened conditions and gives a bit more leeway in terms of holding off on any changes in monetary policy come august. anchor: lots of action in the currencies. we are from global central bank leaders. the euro is rebounding after a new low against the dollar after the ecb says the market misjudged president mario draghi's speech. removal of some monetary stimulus is likely to become necessary. reacteduro markets have strongly to a speech by mario draghi yesterday.
5:23 pm
risk put in danger the progress the ecb has made and its monetary policy. draghi is an signaling anything imminent here. anchor: now the bank of england may need to begin raising rates. only a week ago, he suggested he wasn't in that camp. >>'s comments today suggests that august 3 is going to be quite a tricky meeting -- his suggests that august 3 is going to be quite a tricky meeting. ♪ anchor: rupert murdoch's 21st century fox inches a little closer to securing sky and the u.k.. from the first record of the u.k. government, they were prepared to refer to the regulator. -- as mr. murdock
5:24 pm
had the man out of the news from the u.k. today? >> i think shares are surging because this isn't the worst case scenario for fox with its proposed takeover of sky. the worst-case scenario would of been an outright rejection. with the government has done today is said they are planning to review this -- to refer this for an additional regulatory review, which could take another six months, but it is definitely not the worst case scenario. ♪ anchor: walgreens has scrapped a write a takeover -- a takeover of rite aid, which was being looked at by regulators. >> what they have come out with today is quite interesting. they have said we are going to
5:25 pm
do the deal, but in massively revised terms, so we are only going to buy a small portion of the stores rather than the all company. the interesting question now is what happens to the rest of rite aid. ♪
5:26 pm
♪ scarlet: you're watching "bloomberg best." the health of italy's banking sector under scrutiny this week as the government allow the second-largest lender to take over the good assets of two failed banks for a token amount. we discussed the deal exclusively with the italians finance minister. one of our columnists wrote earlier, "this is a bailout that nationalizes losses and privatize is gains."
5:27 pm
weren't banking rules meant to stop this? guest: i totally disagree with that statement. it is not a bailout. everything was done by the rules. is the national liquidation of two banks declared failing or ecb.y to fail by the anchor: we do not say to those claim that this might undermine confidence in the banking union project? guest: i don't think so. we follow the rules with the european institutions. state aid is totally legal in this case, so there is no disruption of the rules whatsoever. anchor: it's legal, but a week spain went down a different route. how are these two italian ancoers different from b
5:28 pm
popular? guest: i think there is a difference between santander and italian banks that have decided to come in and acquire the good assets of the bank's subject to clausetion, but with the that the capital ratio of the acquiring bank will be kept unchanged by the operation. on the other hand, bank of sense and their -- the bank of something there had -- of santander had to raise capital. anchor: so you don't accept the accusation that some have level leads to athis non-level playing field in europe? guest: absolutely not. this is capital neutral. the position of the bank has not
5:29 pm
changed from that point of view. as i said, given the fact that this is a liquidation according to some specific rules, it was deemed to be totally legal from the point of view of state rules. is not changing the playing field. regardless of what you say, there are concerns. there are concerns in germany. might this tender further eurozone integration, as some have suggested today? guest: i totally disagree with that statement. we have strengthened the euro integration and the banking union. we are working to make it even stronger. ♪ scarlet: straight ahead on "bloomberg best," interviews from the conference known as the davos of asia. ceos from around the world speak out on topics of concern, along
5:30 pm
with tax concern. >> to be more competitive on a global basis, it is essential that it gets done. we are working very hard with them. scarlet: this is bloomberg. ♪
5:31 pm
5:32 pm
♪ riskere we see the biggest is that as we roll forward, there are going to be changes in government policy. public policy will be made on made. back at have big effects on industries. think of german utilities a few years ago. there will be change in technology, which will shift the competitive landscape quite quickly. and there will be, potentially, a pull forward in anticipation -- because that is what markets do best -- of such changes. who is going to win? who is going to lose?
5:33 pm
who is going to benefit? who is going to be penalized? if i am allocating capital, i want to know to be able to make investments. i also want soft information on who is thinking about this so i can make qualitative judgment about management and risk management that often unlock your value. -- unlock bigger value. ♪ scarlet: that was the bank of a late governor -- the bank of england governor discussing climate change. he has a task force on financial disclosures chaired by michael bloomberg, founder and parent owner -- founder and co-owner of our parent company. he also spoke about china's changing role in the global economy, a topic that stephen engle discussed with several high-profile guests. reporter: what did you take away from the speech?
5:34 pm
it was almost a carbon copy of previous speeches, saying that china can withstand all of these challenges. they are going to meet their targets. there is not going to be any hard landing. guest: on the domestic side, i think he was sending a very soothing message, but also making it very clear point that in the lead up to the party congress in november, the government is going to do whatever it takes in order to maintain reasonable rose and financial stability. next year is the year to be concerned about because we might see some more forward reforms which could set up unprintable consequences of their own. -- unpredictable consequences of their own. what i found even more interesting was the international aspects because, right at the beginning and throughout the speech, there was a notion of china taking on the thele of globalization, notion of free and fair trade, free flows of capital. all of these permeated his speech. seeink whether or not we it, but in principle, china was
5:35 pm
to take on this notion that it is promoting globalization and is all for it. ♪ scarlet: a number of leading ceos also spoke with bloomberg businessweek -- with bloomberg this week. with bmw's ceo, who told bloomberg's matt miller that they are making the united states their second home. guest: the united states has been a very important for us. reporter: this is a just about the united states is a market. you will employ 10,000 people. you touch 120,000 jobs in the u.s. and ask for $10 billion worth of cars, more than any other manufacturer, including ward g.m. -- including ford or gm. have you explain this to president trump? guest: i have in march when i
5:36 pm
was visiting the president and his administration. we are the biggest exporter of u.s. product, and 70% of our production goes to the world. that was clearly explained. also, the investment in people and the additional jobs we have created, the great people we have in the plant, the commitment and the passion, and that was well received. i also made clear we need to retrace. reporter: even after you met with him at the white house, he went to brussels and told some of his counterparts that germans has soldbad and bmw millions of cars here and he wants to put a stop to that. does that worry you? guest: that does not concern me. what we have done with our partners in south carolina is a great achievement. we need to retrace for future growth and development, and we may have to explain that a little further, but i'm sure we
5:37 pm
will have a good relationship with the u.s. administration. ♪ >> tax reform is critical for us. for us to get rid of some of the anomalies that are causing other things in the way companies are thinking about where they are going to be based, for us to be more competitive on a global basis is essential that it gets done. we are working very hard with them. are capital allocation strategy is really focused on what our strategy is. we look first at dividends, because we know our investors are depending on us for that. that is after we have invested in the business in the right way. for example, over $9 billion in research and development. we make sure after that that we are always on the look for new technologies that we can acquire. about 50% of our innovation we source externally. we look at other thing like buybacks to make sure we are making smart use of that. of course, when we do those
5:38 pm
acquisitions, we try to make sure we are doing them in an appropriate and tax efficient way. anchor: if the tax rate comes down to 28, 25%, does that change johnson & johnson at all? guest: the more important issue for us is the flexibility it gives you to your capital deployment. what you want to make sure is that companies are making investments based on the inherent value of the investment, not on the particular tax scheme. such as inversions, a lot of that is taking place because companies many kinds are being rational based on the tax rate. another example for us would be how competitive you are on a particular acquisition. is a company coming out of europe can pay a much lower tax rate versus us, it may preclude us from being able to acquire great technology for the future. ♪ >> indian companies today are creating huge numbers of jobs for american in america. own, thatthat i
5:39 pm
company has recently placed an order for up to 205 aircraft with boeing. this deal is worth $22 billion. as for the u.s. department of commerce, it creates 132,000 high paid u.s. jobs within the united states of america. companies like ours are contribute greatly to president trump's america first program, and i think it is important that the american side understands how much we can do for the american economy. anchor: you mentioned those planes you have ordered. want to ask you what you're going to do with them. to you think there is too much capacity on the indian domestic market? are you going to put it on the international route? guest: and is the fastest-growing aviation market in the world. despite -- india is the fastest-growing aviation market in the world. there is tremendous potential for aviation in india.
5:40 pm
we will fly these planes domestically, as well as on international routes. spice jet already flies to seven countries, and we hope we fly to many more of these planes start to come in next year. ♪ >> there is increased skepticism that the administration will be its to push through infrastructure spending plans, and we have seen that reflected in the imf forecast for the u.s. how much of a missed opportunity is this, do you think? guest: if you look at the u.s. infrastructure situation long-term, the u.s. will need to in the energy infrastructure, electricity infrastructure, road systems, to really have a competitive platform going forward. at the moment, it looks like there are a couple of ripples in the system. is not going as smoothly as originally anticipated at the beginning of the year. i believe it will be sorted out very quickly, and that the
5:41 pm
ability in the system that gives investment a platform to be with going forward. reporter: to what degree do you see reduction in political risk in europe given the election or -- the election of resident crone -- president ma in france, or does brexit overshadow all that? guest: at the beginning of the year, we didn't know how france would come out. there is the german situation, as well. and you have brexit. france is now sorted out. we know how the french government will be set up. with the agenda going forward, it looks like in germany depictions are also that it will be a stable and printable environment. the brexit his waist and is very unfortunate from our perspective, but it is because it creates a lot of uncertain -- a lot of uncertainty. that is something we have to
5:42 pm
overcome going forward. altogether, i would expect towards the end of this year for europe to be quite stable and predicable going into the next year. ♪
5:43 pm
♪ scarlet: this is "bloomberg best ." the standoff over health care legislation in the u.s. and parliamentary positioning and the u.k., two of the political stories that moved markets around the world is weak. let's get some of the others, starting in washington, where the nation's highest court may decision on the white house's proposed travel ban. anchor: the u.s. supreme court revived president trump's travel ban and says they will hear the argument in the fall. partial victory or possible --
5:44 pm
or partial loss for president trump here? reporter: i will go for partial victory, given what had been pretty good. the supreme court did say the president has a strong interest in protecting the borders for reasons of national security. because of that, at least when we are talking about people that don't have any connection to the to., right now we are going air on the side of letting the president enforce the ban. anchor: the u.s. government is demanding increased security for flights heading into america as we try to combat the threat of terrorists, amongst sweeping security upgrades in the past of the but stop short larger ban of electronics in clemens -- in kevin's. tell me what this -- in cabins. tell me what this means. guest: the reaction has been positive because it creates a measure of certainty. is going to affect up to 325
5:45 pm
travelers a day, according to the department of homeland security. but it does not prevent travelers from making laptops, which had been proposed before. travelers will be subject to a little more enhanced measures. the department didn't specify in the interest of protecting their means. maybe longer lines, but the reaction by a large has been positive because of the certainty it creates for the industry. ♪ anchor: president trump and india have wrapped up their talks at the white house. however, it wasn't all hugs and handshakes. anchor: there are talks about trying to recruit -- about trying to re-create that "bromance" with president obama. >> delivered working with you to creating a relationship that is fair and reciprocal. you are looking at the u.s. trade deficit with india
5:46 pm
over the past two decades. it has been increasing. the more red you see, the more deficit there is. precious metals are the biggest exports to india. machinery, as well as agriculture. on the topic of machinery, turns out there is some sales that are going on. for example, american planes are going to be headed over to india , only about 100 or so. no timeline for that. donald trump also wants in the act to sign a deal on american natural gas and raise the price of that. there are a couple of things that the white house does have to authorize. apparently they are already authorized by the company's. one is with general electronics and unarmed drones. another is the production of f-16s with lockheed martin. ♪ anchor: treasury secretary steve mnuchin announcing sanctions related to north korea, prohibiting u.s. financial institutions from maintaining relations with a bank of china
5:47 pm
after concluding that lender has acted as a gateway for money laundering by north korea. >> it does seem to be an effort to send a message to china. treasury secretary's comments came just a few hours after the u.s. also announced it would approve a $1.3 billion arms package to taiwan. it is another sign that perhaps the honeymoon between the trump administration and china is over. anchor: president trump making comments on trade. he is saying the u.s. cannot allow trade deficits to continue. he and south korean president moon have a conflict a lot on trade, he says. >> i appreciate south korea getting very big orders to the united states for military. they are buying many f-35 fighter jets from lucky -- from and otherartin equipment at a level to have never reached before, so that is good. things like that will bring down the trade deficit. that is what we like, and we appreciate it very much. ♪ anchor: and france, president
5:48 pm
emmanuel macron taking a major step towards loosening up the country's labor market. toy want to make it easier negotiate their own deals with employees. >> what he is trying to do is go further than any labor reforms that have been done in the past. he wants to lower the cost of hiring and firing, make it simpler. he also wants to make it easier for companies to negotiate at the company level rather than having everything centralized by unions and industry agreements. finally, he wants to make it .ess costly to fire someone this weekend marks 20 years since the union flag came down in hong kong and the city returned to chinese rule.
5:49 pm
president xi is making his first visit to mark the occasion. thousands of police have been deployed to ensure that any protesters are quiet. touch delivered a softer in his opening remarks as he touched down in hong kong yesterday. he says hong kong has always been in his heart, although there were some thorny moments, as well. when he met with the outgoing chief executive, praising him the small andown independent movements that were a big political force during his term. also, some of the journalists when they first met with xi jinping, shouted a question that the state of the jail -- the jailing of it chinese dissident. he pretty much ignore that question and walked out. it underscores the fact the president may not actually be dealing with his critics face-to-face this weekend. ♪ anchor: from political
5:50 pm
disruption to disruptive innovation, a three-year-old company combines a low-price model with the convenience of online shopping. with more than $100 million in sales and what hundred $30 million in venture funding, the formula seems to be working. the ceo explains how box has gone from small to big. box is an online warehouse club. we deliver it right to you, generally in two days or less with free shipping. i grew up in the suburbs of new jersey. moving into manhattan, i didn't have a car. how many other folks around the country have that problem? i moved back to the suburbs to start the company in a small two-car garage in central new jersey. we went after that problem and try to solve it. in the early days we didn't have a marketing budget. it was virtually zero dollars.
5:51 pm
it forced us to be creative and create a very good service where folks would talk about it. oda andd kathy lee -- h kathy lee loved the service. , and wek about it eventually moved out of the garage. the first challenge we had was when we started expanding threat the u.s. a decision, to make or we short-term or long-term? so easy to take away benefits or say, we will pay a minimum wage because you see it on your financial statement. i don't believe that as a long-term good way to drive business. .e took the long-term approach we are all one team. we need to treat everyone fairly. line forht be a
5:52 pm
increased my route, but over the long run i truly believe that it will pay huge dividends. to the day, it has become who we are. we have four locations throughout the united states, three offices, and an airplane. last year was our third full year in business, and we went from virtually zero in the first year to over nine figures. it has always been a dream of ours, and especially mine, to push this to the u.s. stock exchange. we had to divide an area where there is a real lack of solutions. is about staying focused, not trying to be the everything store, doing wholesale and doing it right. ♪
5:53 pm
5:54 pm
anchor: i want to pull up the bloomberg function we have, as plc, which shows you the different customers and suppliers of takata. the big customers domestically, honda, ford, general motors, toyota. bloomberg features about 30,000 functions, and we always enjoy you -- enjoy showing you are favorite. here's another function you will -- useful, quic go. here's a quick take from this week. >> u.s. supreme court justices are supposed to be protected from the pressures of u.s. election cycles, but in recent years, some decisions by the highest court in the land have become more polarized.
5:55 pm
its approval rating is sliding. a year-long vacancy on the court highlighted this divide. so here's the situation. in the last year of his presidency, barack obama nominated federal appeals court judge merrick garland to the stream court to replace -- to the supreme court to replace justice antonin scalia, but republican senators broke with long-standing tradition and refused to hold confirmation hearings for judge garland. >> most republicans so far refused to even meet with him. move, thein this bold gop was betting for the republican president to win back the white house, and their bet paid off. >> i, donald john trump, do solemnly swear -- reporter: april 7, the republican-controlled senate confirmed neil gorsuch to fill the vacancy of the spring court. since -- on the supreme court. since the decision, he has delivered on president trump's promise on maintaining a
5:56 pm
conservative supreme court, potentially for a generation. >> and i got it done in the first 100 days. that's nice. nominees of conservative presidents have helped the court, leading to controversial decisions. the supreme court carries the power to shift the nation's political direction. with their supreme court upon it, residents can influence the nation long after the terms and. that is why in recent years, presidents have sought the justices whose convictions aren't likely to shift. >> i will never forget that to whom much is given, much will be expected. reporter:. the argument. for once major -- here is the argument. the number of important decisions that rest on a 5-4 split have been rising. chief justice john roberts has claimed this could undermine the court's legitimacy as an institution to transcend politics. that there is the diversity issue.
5:57 pm
the slow turnover of the bench means the makeup has lagged behind the nation's changing demographics. cap justices are still white men -- half the justices are still white men. lifetime appointments me justices can still work after strokes or with other mental impairments. some believe that one solution is term limits for justices. in a 2015 poll, americans favored a 10 year term limit. mandatory term limits would probably require a constitutional amendment, a high bar to clear. until there is more, rising washington, change seems unlikely, and the highest court in the land could two-faced visions and challenges to its public approval -- divisions and challenges to its public approval. ♪ scarlet: that was just one of the many quick takes you can find on the bloomberg. can also find and at, along with the latest news and analysis 24 hours a day. that's all for "bloomberg best."
5:58 pm
i'm scarlet fu. backs for watching. -- thanks for watching. this is bloomberg. ♪
5:59 pm
6:00 pm
♪ >> china's latest hong kong connect started today. giving access to the $10 trillion bond market. betty: what is next for slowing inflation? what is on the back burner. confusionertainty and as they attempt the nationwide sales tax. betty: a new dawn in


info Stream Only

Uploaded by TV Archive on