tv Bloomberg Markets Americas Bloomberg July 6, 2017 12:00pm-1:00pm EDT
from bloomberg world headquarters in new york here are the top stories on the bloomberg and around the world. president donald trump and the first lady have arrived in hamburg before the g 20. we will get a life report in minutes. during up for tomorrow's jobs report. we will look across the nation with michael mckee. the road ahead for electric cars. we will tell you about a new forecast from bloomberg's new energy finance. we are halfway into the thursday trading day. abigail doolittle is with us now with the latest. >> pretty clearly the sellers are in control. clearly the nasdaq is down the
most. being dragged down the most by the health care sector. top point drags on the nasdaq are in the technology space. another top point dragged as the company fails to receive the eye ihs reward on safety concerns. tesla is having its worst two days since february of last year. let's hop into the bloomberg and look at the technical. the stock has more than doubled and see election. what we have going on here healthy consolidation. we have very solid support here despite the fact that the up print has broken.
not blue line represents just near-term support, but longer-term support. the long-term outlook is bullish. one reason that vonnie was mentioning work from bloomberg finance we have a chart that shows electric vehicle expectations. yellow is tesla, oranges gm, blue is vw. in 2018, tesla is expected to take the lead into 2021. and finally let's take a look at the another big story on the day. inetheless a big spike yields are presented in red. areells us these bonds happening red across the world as we see more hawkish talk from the global central banks.
funny: -- vonnie: now where the g-20 summit kicks off in the morning, though back channel talks have already begun, i'm sure. donald trump is expected to hold his first meeting with vladimir putin tomorrow. joining us now cannot live from hamburg germany is matt miller. done how much is typically in official g-20 spaces and how much is done in high laterals and behind-the-scenes talks? >> a lot of it is done in bilateral and behind-the-scenes talks that they then bring to the open meetings and put into the statement that they release. one of the interesting things about this year's statement in this could be one of the most turbulent meetings of global leaders we have seen in recent years is angela merkel will try
to appease donald trump in one sense leaving out as often as possible the term climate change from the communique. on the other hand she is going to try and strengthen all of the other 19 members of the g-20's commitment to holding on to the paris climate accord in keeping and agreements to hold climate change from raising temperatures two degrees around the world. vonnie: you're watching live pictures of president donald trump arriving in the hotel. he is going to be meeting with chancellor angela merkel. a restricted meeting. kevin cirilli, who, in terms of world leaders is the president targeting, and for what purpose? >> this is all about vladimir putin and when the president meets face-to-face tomorrow with
vladimir putin. we should note that president trump didn't make some it's about russia in particular, the meddling in the election. when asked earlier he said, i think it was russia, but it was probably other people or countries. nobody knows for sure. we should note that top u.s. telogen's officials have testified before congress that there is no question that russia was responsible for the cyberattacks within the 2016 election. the senate has passed a sanctions bill nearly unanimously. they are under no direction from the white house. second of thend interaction between president trump and vladimir putin tomorrow will be carefully analyzed before the world media. president trump arriving at the atlantic hotel in hamburg where
he is due to meet with merkel. on, he is due to go to the u.s. consulate general. ostensibly the g-20 will be about climate change and trade, but there is a lot of geopolitical wrangling going on. kevin said it is all about vladimir putin but a lot of this is going to be about how to handle middle east crises, terrorism and sanctions on russia. what are the rumors going around hamburg as to who will emerge with the most acorns? >> angela merkel and germany are hosting this summit. they have the presidency of the g-20 this year. the chancellor has stated that she will champion germany and
europe's goals first and foremost as far as what is on the agenda. anti-terror is a huge part of that considering the attacks we saw in berlin over christmas, in france, in belgium and and england over the last couple of months. that will be an important topic. as far as sure that the official meetings go and the communique driven by the german presidency of g-20. vonnie: and on a completely separate topic, given how much we are concentrating on foreign affairs and international diplomacy, is washington completely dead? has everyone gone back to their constituencies to deal with what they might at home? >> all the action is in hamburg.
it is raining here in washington. wes like the first slow day have had an along time. but senator ted cruz is putting forth some new proposals the have submitted. republicans are hopeful that they could potentially reach a deal next week. fbi director's nominee will testify before the senate but all eyes are focusing on the growing threat of a nuclear north korea. president is who this white house feels will be able to navigate north korea. exporter importer and of the chinese. whatever economic routes the administration can take, all roads lead through china. vonnie: he is in washington, d.c. and matt miller in hamburg,
germany with that useful background. here is mark crumpton. mark: before heading to poland, or to germany, excuse me. told the donald trump crowd in warsaw that western nations must stand up to the twin evils of terrorism and stifling government bureaucracy that threaten individual liberties. the president laid down a stark vision of a clash of civilizations and said it is not clear the west can survive. he argued the nation's can prevail but only if they cling tight to the values of faith, family, and freedom. >> the west became great not because of paperwork and regulations, because people were allowed to chase their dreams and pursue their destinies. >> as money mentioned a moment ago the president is in hamburg, germany for the g-20 summit.
bombed ther who rihanna grande concert was not part of a network. that's according to police is say the investigation is continuing and more arrests's me the made. he detonated a bomb as crowds were leaving the arena killing 22 people and himself. authorities said today that they are looking for one other suspect after reading half a dozen sites. they insisted that they had no information that an attack was imminent. the federal prosecutor's office said in a statement that two belgians were charged with taking part in the activities of a terrorist group. british financial firms with flexible immigration rules to
ease the pain of brexit. the court a lobbying group, changes that help the finance ministry could generate $55 billion of economic gains by 2025 but they admit the changes will not bring as many benefits as staying in the european union. i am mark crumpton, this is bloomberg. >> coming up to look at austin's labor economy and why the needs a humancene touch. ♪
vonnie: this is bloomberg markets, i am vonnie quinn. hiring has slowed in recent months and there is a lot of talk about companies inability to find workers with the right skills. on the eve of the june nonfarm payrolls data, michael mckee joins us from cambridge, massachusetts with more on the so-called skills gap. >> unemployment is actually rising in the boston area. chart on your screen. it is all the way up to 3.8% low the a full 0.5% national average and that is as much of a problem as a blessing. these boston high-tech companies are having a hard time low the finding workers but it is hard at the
lower end of the income scale. those who provide home health care are in short supply. that's a problem for a nation that is rapidly aging. michael weeks is resident of the massachusetts council of human services providers. least one third of the massachusetts population is going to be 55 years of age or older. that means more than likely they are going to need more services. our demand is going up and our ability to decrease the need is going to decrease because of our shortage in the workforce. >> it is a different kind of skills gap. is not about understanding computers and machines but understanding people. because the government subsidizes many of these jobs the pay is lower than in other areas. #btv 940.
long ands they have a stable population ahead of them. this has been the fastest growing sector of the economy and it is likely to stay that way despite the publicity that the tech gets. >> these jobs are not going to be automated. people dealing with issues of opioid addictions, mental health veterans. they are going to need human beings to work in the kind of jobs that we have and provide the kind of services. we are labor intensive in that regard. additional stress on our sector. >> weeks would love to tap into that cohort of manufacturing workers who have been laid off but he fears it would take a
different mindset for many of them to consider his profession. vonnie: where do they go from here. it's easy to look back a couple decades and see the trends already in place, but do we get to hire more service workers when wages increase or does it need to be some kind of training improvement? we saw even today that the unemployment component was down in june. x you need two kinds of training. you need to get people trained for these skills but a lot of people can do that. it is the empathy factor that you want to work with people. than the pay has to go up and in many cases that will mean more government support which probably means higher taxes. we will need a lot more of those people because the baby boomers are rapidly aging. vonnie: we will need more of those people no matter what the
outcome of health care policy ofr the next term or two presidential politics. >> absolutely. it doesn't have to do with how , it has to doured with how people are taken care of. also rehabilitation care, people suffering from the opioid crisis. they need more bodies of people interested in going into that business. vonnie: michael mckee there, a beautiful scene in cambridge, massachusetts. with look at some of the biggest business stories in the news. has ams that tesla clearly than the electric car race. tesla will surpass general motors and emerge as the anndup. carmaker has estimated 379,000 deliveries through 2021.
bloomberg's new energy finance is a research group owned by lp. the macro fund has made most of its money from interest rates and currencies. the gains market turnaround from the losses in 2016. baskin-robbins is delivering and hopefully fast. some stores are bringing ice cream shakes and takes home through a website and app called doordash. that is your latest bloomberg business flash update. still ahead, john malone, the cable cowboy. one of the biggest film makers out there. we will to you what he is buying after the break.
vonnie: this is bloomberg markets, i am vonnie quinn. qvc,malone, the owner of is buying the 62% of hsn, that it doesn't already own for $1.2 billion in equity and $530 million of debt. here is the deal's report. deal.s was an all stock stock, or the parent company of qvc, liberty interactive. these committees are very famous
990's, the 1 old-fashioned sit on your couch, watch home shopping network, pick up your phone, buy goods. over the past 20 years or so, they have morphed into e-commerce companies, in addition to the old-fashioned use your remote control and buy goods. if you look at the revenue of both companies, they do a lot of sale. qvc does about $8.5 billion of revenue last year. $3.5 billion. these are robust companies, but hsn has fallen on hard times. that is why this deal got done. john malone and liberty interactive decided that now is the time to buy the other 62% it does not own. there is an obvious rationale. they do the same thing.
there is quite a bit of synergy. the liberty interactive ceo saying there could be more than $100 million per year of synergy. you figure some of that will be job cuts. there is overlap here. they will continue to operate as two distinct brands. there is a bit of a difference in focus with hsn focusing more on electronics, fitness, and health. qvc focusing more on beauty and fashion. they will continue to operate separately but my chores will take over the company. vonnie: qvc is based in pennsylvania, where hsn is in florida. alex, talk to us about what malone's liberty media looks like after this. >> this is liberty interactive, companies in his empire of companies.
we should take a step back in case you are a john malone watcher. liberty interactive will own 100% of hsn and qvc. they also own minority interests in expedia, lending tree, a vacation,rest in a timeshare resort company that they own. this continues to be a morphing company. it falls in the empire of many other companies that john malone controls. talking liberty media, liberty broadband, liberty global, liberty stars, liberty venture. this is one of those myriad of companies that malone owns. within them, there are further tracking stocks. there is a qvc group that hsn will fall in. that, aadd zulily to company that liberty interactive but a couple years ago, as
liberty interactive, greg maffet and john malone tried to move away from that. vonnie: it is amazing looking at liberty interactive trying to find securities and takers. there are many. we will have to talk more so you can more about his businesses. i find them fascinating. we will get inside of president donald trump's meeting in hamburg with the russian president vladimir putin. we will hear from a key rush of representative at the summit next. those are pictures from earlier today when the president and first lady arrived in germany. this is bloomberg. ♪
headquarters in new york. i am vonnie quinn and this is "bloomberg markets." let's have a quick check of where we are now. of theise, in the middle session. the dow is down about half of 1% off a low for the day. the s&p 500 off a low as well. they are where they have been for most of the session. the nasdaq down about two thirds of 1%. let's hear more from taylor riggs who has been looking at more consumer companies. taylor: i can't get away from the retail story. i will use this opportunity to highlight that. down 13% here. down 17%, that stock near the lows of the session. on contrast to that, take a look -- they are a little bit higher trying to avoid the pressure from amazon here. -- postedsses same-store sales that were up 6%. the membership business model, a value proposition when you are going into the store.
it is helping them stay insulated from some of the digital pressures like amazon or now. also, sticking with the retail theme, i want to hit under armour here. they are also down near the lows of the session. but this is interesting. it is not a brick and mortar store. -- story. this is an online story. search trends are in a decline and that is pushing the stock lower. and analyst over at eagle alphabets saying the search trends have continued in a downtrend. that is what is sending the shares lower today. finally, we will wrap it up with herman miller, the interior office furniture maker. they are surging but they are off the highs a little bit as you can see, up still a little bit about 10%. take a look at their first quarter earnings, they top estimates. they're looking to boorse -- boost dividends. they're looking for the biggest day since 2011. you.e: taylor riggs, thank
let's get back to the latest now on united kingdom politics and how it affects exit negotiations these days. with labor talked secretary -- premise or theresa may. it is very difficult, while the government is continuing the withthat this is no deal europe and they can simply walk away, i think that would be very bad. if we just suppose as of march 2019, suddenly we left the eu and had to trade the world trade rules, that would be catastrophic for the manufacturing industry. there has to be in agreement. it is in the interest of both parties to reach an agreement, that is in opposition with putting such a huge amount of effort into building up those
good contacts and relationships all across europe. we accept the result of the referendum and we are leaving the eu but let's have a serious partnership and relationship in the future. alsoe younger generation voted for may if they were able to vote at that point. "we areou square the, leaving the european union," with that? we have to respect the results of the referendum. does that mean we break off relations? does it mean there is no travel? of course it does not. it means as close as possible to operation and coordination in the future p or to other countries not in the european union, norway, for example, have very good relations with the eu and have travel arrangements that fit into all of that. students studyof part of their courses in european universities, i think
that is an excellent idea and i want to continue. >> is the answer to britain passes public sector crisis more money? jeremy: the crisis is related around cuts in expenditures. so yes, money is a very important part of it. also, the pay levels that staff achieve. a good society where nurses, absolutely crucial to with foody, and up stamps because they get so little pay. >> how do we make [indiscernible] i think productivity in the public sector is probably quite good in many areas. the public sector is often very efficient. sometimes, management structures seem to me a little top-heavy. that issue needs to be looked at. working inat those the care sector, those working
in social work, those working in don't work incredibly hard with high levels of productivity, many people work that oftenectors work a lot of hours every week unpaid because they are responsible and don't want to leave the people in danger. ofnk of the efficiency ambulance service and fire service and people like that. they are not well-paid. they do the job and we should pay the more. >> it definitely needs to come from somewhere. jeremy: there is a question of how you fund our services. those with the most money should obviously be prepared to's -- to pay the most. historically, the top rate of income tax was very high in the
u.s. and europe and it gradually in the 1970's and 1980's particularly. we are pulling it up a bit, not that much. we are putting the tax to less than it was in 2010. it is our way of saying we have gone too far in cuts to public expenditure, straining our services to much. at the end of the day, we will lose. speakingeremy corbyn with guy johnson. and firstident trump lady milani a trump have arrived in germany ahead of the eve of his first meeting with russian president vladimir putin, trump -- intelligence about counter meddling in the u.s. election. speaking in poland earlier today, mr. trump said russia was and thatnly country nobody really knows for sure. during his remarks, the
president also encouraged eastern european countries to buy u.s. gas. the president said, "the united lose energy toer nations," referring to russia. democratic attorneys general in 18 states and washington dc have modal -- mobilized against secretary betsy devos's's decision to suspend student loan borrower defense rules. it was supposed to go into effect july 1. lawmakers filed a federal lawsuit against devos today, demanding to have the rules restored. they were designed by the obama administration to make schools financially responsible for fraud against student borrowers. global warming might be speeding up, a conclusion of two scientists at harvard. passes, itmore time
will get hotter and that will accelerated overall rate of warming across the planet. global news 24 -- global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. vonnie: thank you. coming up, we will get insight on president trump's meeting tomorrow at the g-20 summit with russian president vladimir putin. we will hear from the key representative. that is next. this is bloomberg. ♪
president donald trump has arrived in germany for the g-20 summit, where he met with german chancellor angela merkel. isorrow, president trump going to meet face-to-face for the first time with russian president vladimir putin. for the first time -- on a range of issues analysts will be back tong, let's get matt miller. matt: we are fortunate enough to ask some questions of president 's representative here at the g-20 meeting. thank you for joining us. what vladimir, putin, the president, and you hope to get from tamara's meeting with donald trump. >> there are a lot of issues with donald trump. counterterrorism
, and maybe some bilateral economic relations. has been u.s. media flooded with reports of russian hacking and the 2015 election into the dnc. do you expect president trump to confront president putin about these allegations question mark -- allegations question mark --allegations? and what would be your response? svetlana: we always say it will for the u.s. there is no evidence it was us interfering into this election. the president will be much more clear on this. do you expect president putin and president trump, although the relationship has been rocky between the two countries over the last few months, to have a good working relationship together? svetlana: i am sure of that. here, where cooperation is crucial, we're here to discuss
mostly economy issues. matt: russian delegates are on one side with all the other 19 g-20 members against the u.s. and president trump when it comes to climate. how do you think the issue will be resolved? svetlana: i will not say someone is against anybody else. .e have equal positions it is unfortunate that the priorities of chancellor merkel, climate and migration and trade, are the most difficult topics to discuss. they are trying to find compromise. we have been standing here for two nights and two days already to find solutions on how to work together. despite all of these difficulties, we are quite positive and constructive.
matt: you believe it has isolated itself because there is a lot of talk about a lack of u.s. leadership. they are revising their positions on many issues including trade and many other things. but they worked together with everyone, including us and including the members. and they want to work together. what are the biggest concerns for the russian delegation, besides the issues of the relationship with the u.s.? i assume that terrorism is first and foremost on your list. we discussed first of all the global economy and and also topics like priority, including globalization and trade, .ncluding the digital economy terrorism is everywhere now and it will be discussed. prepared putin is well
to talk with his counterparts on this issue. and that will be one of the crucial points of the summit. matt: why don't we start with a trade issue? it seems not only the u.s. but the u.k. and possibly the eu are sliding into some protectionist measures. are you concerned about that, are the russians concerned about that? i think everyone is .oncerned it is a major problem now for global growth and sustainability of the global economy. actually, everyone is trying out to find a compromise. i think you will see it. matt: one thing people are trying to figure out how to deal with is the missile recently launched by north korea.
how does russia hope to work with china and the u.s. on the north korean problem? svetlana: first of all, the issue is the on the agenda even on political issues. mainly, counterterrorism will be discussed here. but we are prepared to discuss them if the issues are raised. matt: how do you feel they should be addressed? is it possible you would condone military action in north korea? svetlana: i think it is premature to have a decision right now. let's let our leaders discuss the topic. matt: you do have counterterrorism activities going on right now in syria. recently, there has been some problem -- problems between people working together or working at odds. how do you expect physicians to get resolved and svetlana: will they be discussed? svetlana:-- and will they be
discussed at the g-20 summit? svetlana: as we started to discuss this issue here, another to find somebe compromise, to find a common approach. but indeed, this is just a preparation. we are prepared to work with everyone. i am sure the guests are prepared to work with everyone to resolve the problem. met: can you talk about with other g-20 members, the reduction of sanctions against russia? is that important for you here? these areactually, not on the agenda. we are mostly talking of, well, some prerequisite for growth. it is not the time -- to discuss and try to resolve
these problems. matt: thank you for your time. the representative of president vladimir putin here at the g-20. back to you. vonnie: fascinating. one of those people who is a diplomat and a civil servant and they press for the discussion to come. some of for a look at the biggest business stories in the news right now at microsoft .6%.s are down about they will kit -- they will cut jobs and sales and the united states. selling clouds on software. a microsoft spokesperson said workers were being notified today. about .8% after the company reported june sales that far outpaced analyst estimates. according to experts, costco memberships, which make up 75%
of annual profits, show the retailer can coexist with competitors like walmart and amazon. the university is looking to sell land in uruguay, including 479,000 square acres. according to people familiar with the matter, the area is valued at $120 million. university sales as part of a restructuring plan to approve the fund performance. that is related bloomberg business flash. coming up, surprising data. a report on how electric cars are disrupting the auto industry and who might actually benefit most. this is bloomberg. ♪
a new forecast for the auto verytry and some interesting conclusions. it is calling for a dramatic shift with electric cars as battery prices plunge. , aning me now from london analyst for bloomberg new energy finance. lp,unit owned by bloomberg talk to us a bit about what consumers really want. >> consumer press -- preferences are sometimes difficult to predict it ultimately, consumers want vehicles they enjoy driving but also that are competitive. a big part of the work we did is to look at the trajectory of costs electric vehicles are on. we looked very in depth about battery cost curves. and what wen 73% find when we dig into that is those costs, one will continue and two will lead to an
inflection point in the adoption of electric vehicles because basically what happens is in the late 2020's, we see battery costs coming down even from the mid-2020's, to a point where electric vehicles get cheaper to build and then sell. what that does is start to really spike the adoption of electric vehicles. vonnie: i believe we have a chart showing the current china,tion in europe, the u.s., and the rest of the world. about 5% oronly what if we have new technology by then? is that a possibility? >> there is always the possibility of technology breakthroughs. but generally, we expect lithium-ion batteries to be the dominant technology driving the electric vehicle revolution. we do not see that much in fuel-cell vehicles. we see a gain already tapped out and that gets quite important. if you look at fuel economy in
places like europe, the u.s., and china, they all call for dramatically -- vehicles. it is really hard to meet with existing diesel and petrol technology. by 2025, european targets would require somewhere between 10% and 17% sales to be electric. china is aiming for all sales growth from 2025 to be all electric. at that point, you're talking somewhere around 7 million vehicles a year just in china alone. you have really strong policy levers starting to push it forward. at the same time come you have technology coughed -- cost curves coming down and eventually giving us vehicles they will want to buy. there are two different philosophies in the world right now. tell us which companies will benefit most from the shift? >> battery vendors in general we think will benefit. some of the miners supplying
some of the materials are also well positioned in terms of automakers, some of the smaller and more nimble automakers will isp ahead in this at tesla the obvious example but you will also see jaguars about to launch and later this year, volvo is coming out with one next year, audi as well next year. some of the smaller manufacturers are able to jump ahead and grab it bit of market share, but ultimately in the longer term, you will need some of the bigger auto manufacturers on board. gm and toyota, producing 10 million vehicles per year. to get that, you need them on board. in some ways, some of the smaller manufacturers force the hand of the larger ones. vonnie: finally, if things go the way you predicted, at what point will subsidies disappear? >> in the way we modeled it, we assumed no new subsidies and the ones fade out according to the current timeline. in most cases, it means all
subsidies are gone in the early 2020's. when we talk about this adoption inflection point, we are talking about unsubsidized up front costs and total cost of ownership in competitive across all classes. between 2025 and 2029 in some places in europe and the u.s. vonnie: fascinating and our thanks to colin, analyst for bloomberg new energy finance owned by bloomberg lp. still ahead, president trump and angela merkel holding one-on-one talks ahead of the g-20 summit. we will discuss the future of with thean relations german ambassador to the united states. this is bloomberg. ♪
this hour. president donald trump is in germany for the g-20 and is currently meeting with german chancellor on what merkel. we will get the latest from my colleagues and we will get information on the relationship between journey -- germany and the u.s. president trump is contemplating some pretty severe things way comes to north korea. he proposes we deal with rising tensions through diplomacy. ♪ david: it is no secret summits like the g-20 can go by without creating real news but that does not seem likely this week when president trump attends his first g-20 are he is at odds with many of his fellow leaders. executive editor craig, normally in d.c. i was chewing over a line from the present policy speech this