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tv   Bloomberg Markets Americas  Bloomberg  July 7, 2017 12:30pm-1:00pm EDT

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vonnie: from world headquarters in new york, here are the top stories we are following. president donald trump says that russia's president -- and russia's president just finished meeting and have -- in hamburg. the most highly anticipated sit down at the g-20. and news out of the two countries have reached an agreement for a cease-fire and southwest syria. elsewhere today, hiring picked up in june in the u.s., but wage growth disappointing again. a look at the data with kim wallace, the managing director at macro research. amazon may not be the only country -- only company that was interested in purchasing whole foods. the top stories, two hours and
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toy minutes later president trump and putin finishing their meeting at the g-20 in hamburg. u.s. officials saying that the u.s. and russia have reached an agreement for a cease-fire and southwest syria. those pictures you see where from before they went into their face-to-face meeting. friendly words exchanged. we will go straight to hamburg and the matt miller. what are you hearing? what i am hearing, or what i heard ahead of the meeting, was the two leaders had real admiration for each other. those were not as pleasant words. putin referred to donald trump as his excellency, where as president trump said it was an honor to be speaking with president putin. both said they expected a meetingsoutcome to the
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and they were only expected to meet for about 30 minutes, but it stretched far be on the two-hour length. they must've had a lot to talk about. remember, this was a small meeting. it was donald trump with rex tillerson and a vladimir putin with a sergey lavrov. the four of them and their translators in the room. vonnie: yes, and we are hearing as well from the ap that there could be some kind of deal reached on syria, with a cease-fire, which we should mention is already in existence of by the u.s. was not party to any agreement up to now. that would not be necessarily donald trump and putin, it could also be the sectors of state, right -- secretaries of state, right? matt: absolutely. the two of them were meeting before donald trump and vladimir putin went intimate with each other. they were working with others,
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including the u.s. team, for the last few days. these are some of the subjects donald trump had been talking about, especially in his speech and poland, calling out the russians further involvement in syria and of their backing of iran, further involvement in crimea. these were the issues they wanted to discuss. i cannot imagine a cease-fire could have been brokered in the last two hours, it was probably dealt with before. vonnie: i want to mention a couple other things. angela merkel addressing major crowds earlier today as donald trump and putin went off for a one-on-one meeting. she said some things, including that the sherpas were finding it difficult to find language that everybody agreed on when it comes to trade. all. sure, no supplies at they could not find any agreement on the issues when they met earlier. donald trump has not made any
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indication that he has moved from his isolationist positions and i think everybody knew ahead of time there would be difficulty in finding some communication or agreement with all 20 of them. they are prepared to agree among 19 leaders, as they did on climate last time. leaving the u.s. out in the cold. they will officially say they do not want to do that, but it looks good to the base of those ers, for them to be fairly anti-trump. vonnie: tell us about the protests. the program for the spouses was severely disrupted, including a tour of a climate change center where angela merkel was going to take the spouses and daughters. how big are the protests? how much have they been disruptive? matt: that is true. husband hadl's
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developed a program for the spouses, there is always a program for them at these meetings. it included this time a trip to a big datacenter that gathers scientific evidence of climate change. melania trump had been invited and a police later said they were not able to take her from the evidence -- from the area, because of the protests. we have seen thousands of protesters on the streets, robbing local businesses, setting cars ablaze, and throwing molotov cocktails at police officers. there are 15,000 hamburg police officers on the streets. there are reports of them calling for help from other municipalities, but it seems like with the exception of many cars set on fire around the city, they have a fairly under control. that is to say there have not been any casualties. and although there have been injuries on both sides, some officers injured and is some protesters falling off of a
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wall, it does look like the violence has been relatively contained compared to past global meetings. vonnie: fantastic job, matt. in hamburg for the g-20. now a check on markets. >> it looks like we see some green on the screen after the better-than-expected jobs report this morning. pointing to the dow jones, up 100 points. the nasdaq up over 1%. what i want to highlight on the nasdaq is that they are leading in the gains today, but take a look at the five day, we are a little bit positive but a long way to go to get back to the highs we saw a month ago when the index was at a 63.20, today hovering around 61.55 level. there are some tech leaders today that are driving the nasdaq higher. some individual stocks i am looking at our applied metals, up over 3% of here.
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these having targets raised by morgan stanley on expectations that the chip equipment companies should have long-term confidence. lam research had the target raised around 168 and applied metals around 52. something i am keeping and i on. we hit on equities. we want to touch on bonds now, another asset class i want to touch on because the 10 year yield, looking like it is higher. we saw fluctuation this morning after the jobs report. it was better than expected. bonds selling off. and then there were some wage pressure concerns you mentioned in your opening, not exactly where the fed wants it to become a but we are still continuing to see the yield rise. we mentioned the fed. we will jump into the terminal. this is - is the party over for the fed? that is the question.
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coming out to say today it is over for the fed. this is the german two-year yield in the white. these look to be uncorrelated. as you come over here to 2017, as the doe and fed look to raise rates, you see the yields rise together in tandem. vonnie: taylor, thank you for that. taylor at the market wall. coming up, looking at the jobs number. with a margin of error. pressure why there is on downward growth and more precipitation, but unemployment up as well. we take a look at it next. this is bloomberg. ♪
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this is "bloomberg markets." i'm vonnie quinn. first word news. courtney: the u.s. and russia set to announce a cease-fire for southwest syria in an effort to stop the civil war over there. officials say it would take effect on sunday. word of the cease-fire comes as president trump is meeting with vladimir putin at the g-20 summit. protesters at the summit in hamburg continue today. more than two dozen people injured when they fell off a wall during a protest, 11 of them severely hurt. 160 police officers have suffered injuries. the protests began yesterday. mitch mcconnell plans to produce a new replacement bill for the affordable care law in a week. he is also leaving open a possibility of a plan b. he says if a consensus is not
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reached in the party, they could take action. the republicans say just in a smaller bill would help for insurers and consumers. the canadian prime minister says he will meet with the u.s. governors at a summer summit in rhode island. he says he plans to deliver the keynote address at the national governors association meeting that begins this thursday in providence. he says he wants to strengthen the vital relationship between canada and the u.s. he says no other international relationship is more important to canadian prosperity. global news, 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. vonnie: courtney, thank you. the jobs report offering a positive surprise, about 30,000 of the difference, showing the going up androll
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adding more jobs than projected. the expectation for another fed rate increase. and joining us now is kim wallace, exhibit of washington policy research at renaissance macro research. how will the fed have received these numbers and how do they the white house received the numbers? kim: for the fed it is probably mixed information unlikely to deter them from a path they have decided on. of course they will pay attention to the data, but within a range. i am not sure they will be dislodged from their path. in terms of the white house and lawmakers, it does put in emphasis on the importance of the economy and jobs to the voters. when you look at all of the polls, the number one issue by far is the economy, followed by health care, and i would consider them linked. those issues go back to the
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legislative agenda, difficulty in passing health care in large part because the benefits taken away from people, will roll into summer in which fiscal policy will become paramount and those same constraints will be on policymakers as they attempt to raise the debt ceiling, and do something about tax policy. vonnie: there is a huge agenda that they have not been able to get around to. i want to point out that our policy correspondent did a great report yesterday on the exponential goals in health care service jobs. that is one area of the economy where we could see some of that slack in the labor market go away. what are the ramifications of uncertainty in health care in the labor market? kim: it is broad and hard to talk about it concisely just now, but in effect, as you point
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out and as michael was saying yesterday, a lot of the jobs will experience growth in the next 10 years, and they have in the past five years, so you want to be careful as policymakers not to provide disincentives for the jobs. the policymakers are still struggling through the weight of obligation on health care, both public and private. they have come up against a intong number of retirees the systems, more than 10,000 people a day entering medicare, while arguably fiscal policies in washington have not been changed in the last 30 years to accommodate the baby boom. they have work to do. vonnie: well they get it done? we are fascinated by the g-20 meetings and the meeting between donald trump and vladimir putin, but when trump comes back to washington dc he meets a city divided and a congress that cannot get anywhere on anything. kim: it is a difficult prospect.
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i do not think it is meaningless that a day after he left for europe, the senate majority leader, not in washington but in kentucky let people know that there is a plan b and it may be necessary. it does not seem to me that the unified gop leadership is cohesive on the issue, largely because of fiscal fallout. that is unlikely, the condition is unlikely to abate as they go into next week, and into the budget resolution, which will give light to reconciliation, making tax policy easier. it did not so well work on health care so far. that will leave you going into the fall, looking at the risk of shutdown, and what they have to do in september and october on the debt ceiling. all of that is fraught with political risk and applications for the economy. vonnie: what is your best guess when the policymakers come back
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from recess and having been at home, either facing constituents or ignoring them, as in some some ignoringtly protests outside of their offices. do they stick with health care, do they turn to the budget ceiling? find value in following the senate majority leader, it is not only his job to protect the majority and keep his title, but he has acknowledged the lift sn health care becomes -- come because of the push back, where you are taking away benefits from those earning less than $75,000 and you are going to, at least in legislation, give benefits to those 200000 and above. it has not worked with health care. dynamicd earlier, the will start over fiscal policy. my guess is republicans will skill down the agenda to what
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they can pass. i do not have a clue what that is. and avoid political risk aversion going into next year. 2018 from a political standpoint has been brought forward probably two or three quarters early by the health care debate. they will want to tamp down the risks. vonnie: on the testimony of the fed chair next week, so much going on that congress may not have a chance to go through the monetary report so much, but it will not stop them from attacking the monetary policy in the fed, will it? kim: it will not. the fed is accustomed to being the punching bag. with everything escalating across the world, i would put monetary policy closer to the end of the list. i think the geopolitical risk, fiscal risk, those come before. if they have time or staff had time to look at recent publications from the bank of international settlements and the inf, there are a lot of
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smart people giving advice on how to pursue sustainable growth policies in the u.s., which have not been taken up in the 30 years i've been doing policy. nonetheless, they are no less urgent now and available to policymakers, they simply have to put together the political will to pursue those policies that brought in the benefits. this is what king was talking about in his latest book. about this equilibrium and savings and spending, within countries and across countries, it is a crisis moment in my view. vonnie: final question about the president being abroad at the moment and coming back. do trips like this help or hurt? g-20 will not say anything wonderful by the united states, we have already heard that communication on trade is hard to come to, angela merkel saying that, so does it make a
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difference to president trump and what happens this weekend? weekend,so much this as much as would next week begins.. the g-20 is rarely a locus of gold policymaking. rarely is it set up for that. lawmakersnext week, in d.c. will have to decide whether they will pursue from the legislative agenda that will affect fiscal policy and the myriad audiences, the voters, markets and for that matter global heads of state in terms of what we do about sustainable global growth in a way that actually can be sustained. vonnie: kim wallace, thank you, head of washington policy research at renaissance macro research. joining us from washington dc. new details emerging on amazon's bid for whole foods. this is bloomberg. ♪
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♪ vonnie: this is "bloomberg markets." i'm vonnie quinn. time for our bloomberg business flash, a look at the latest business stories in the news. bluecrest capital investing transient million dollars in 111 capital. he is the former head of -- and bluecrest is a sylvester in the fund, focusing on stocks and derivatives. plans to sell half of a billion-dollar package to pimco in fortress investment group's. he spoke today, saying the deal will close in the next couple weeks and they will divest the rest of the portfolio, saying failure is not an option. he says after the bailout, there are no more systemic issues for the italian banks. reportet to the deals
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where we zoom in on an analysis from the biggest stories behind the deals. we are talking about whole foods and amazon and the idea that whole foods might have wanted $45 a share, not $42 as offered by amazon. alex: when these big deals are announced they come with a proxy statement, which gives details about how the deal happened, and of the various bids along the way. it is like christmas for a reporter. one of the details mentioned is that during negotiations between whole foods and amazon, there was a bit of a back and forth on price. goldman sachs representing amazon in this transaction. taking a hard line in negotiations. if you backtrack, basically what we learned through this was april 18, jana partners said we have an 18.3% -- a .3% stake in
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whole foods and we want to talk about strategic alternatives. at that point, three firms came in and said they were interested in having a discussion if you guys are interested in selling your business, or at least part. at that point, you bloomberg aig, saidspencer and cr that amazon was looking up whole foods in their internal review. that prompted a consultant from whole foods to reach out to amazon and ask if it was true. and if so, let's talk. it was true, they decided to talk and eventually the original bid came up, which was $41 a share. whole foods said they wanted $45, and eventually they agreed on $42. vonnie: there is no moving amazon up, is there? alex: take a look at the share price today, it is a little over
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$42, so there is some possibility that maybe another buyer comes in. but it seems unlikely to me. i'm not sure who the buyer would be. but maybe the motivation is amazon took such a hard line, saying it is $42 or we walk. so that if somebody to come over the top, the thinking is maybe they would not even get into a bidding war. vonnie: alex, thank you. coming up, speaking with michael helen on foreign policy about what he is watching during the g-20 summit. this ad leaders -- as leaders go toward the conference hall for the evening entertainment. this is bloomberg. ♪
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>> is 1:00 and washington, 6:00 in london. i'm david gura. welcome to bloomberg market, the trump economy.
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president donald trump and vladimir putin left for over -- met for over two hours today. anticipated sit down, the two countries have reached an agreement for cease-fire and southwest syria. a dozen power plants were breached by hackers in a foreign government in the chief says act as russia sparking major concerns in washington and across the country. and retired u.s. attorney general joins me to break down the latest in the g-20. let's go to the g-20 summit in germany and the two plus hour meeting between trump and president clinton. putin.sident clinto d.c. cirilli is in


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