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tv   Bloomberg Markets Americas  Bloomberg  July 10, 2017 12:00pm-1:00pm EDT

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vonnie: from world headquarters in new york, here are the top stories around the world that we are following. back to work, congress returns from recess with two weeks before august recess and health care and budget deadlines to deal with. it is a crucial stretch for the gop and for the president. and up to par? apollo making a $1 billion wager on the golf industry. snapping up holdings. betting on a struggling industry, will it pay off? and mystery millions, the unknown crypto currency trader that turned $55 million into nearly $300 million in one month. how he or she did it. first, the regular markets, halfway into the trading day and abigail doolittle has been taken
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a look at where the stocks and bonds are trading. abigail: the bulls are trying to take charge. earlier, we had small changes. now we have small tomatoes gains for the s&p 500 and this is after weekly gains last week ahead of earnings season, so investors are having a positive flair before the season kicks off. really helping out the s&p 500 today, tech, facebook, amazon netflix and alphabet. we had a big rally on friday, more action for this sector. it is down from the june 9 all-time high for the nasdaq. but today investors want in ahead of the earnings season and the first to report, netflix on july 17. and materials, lots of big gainers for this space, including southern copper, nucor and u.s. steel. this as a potential strike at chilean mines is helping the
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shares being cheered on. the ceo meeting with officials to work out a deal around issues they have been having. relative to the still companies, this could be a bullish mention on the price of steel, but the materials are on fire today. one question, last week and the week before we had a selloff in the bonds for treasuries. and take a look, we have seen unusual ripple effects from the bonds selloff. one question, what will it do with the commodity space? this is a year-to-date chart of the bloomberg commodity index and you see a strong downturn, that is unusual considering the dollar is also down. it mainly reflects the weakness in oil we have seen. and it suggests we could have more selling for the commodities. perhaps a ripple effect. today bonds are rallying. take a look at the intraday chart of the 10 year yield. please see it is down about two basis points. this tells us investors are
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stepping back into treasuries today after quite a bit of selling action. interesting flip-flopping today from what we saw last week. vonnie: abigail doolittle, thank you for that. congress returning for a crucial three-week stretch with a looming health care, tax bills, and donald trump junior complicating the picture potentially. kevin joins us from the white house. and our national political reporter joining us from capitol hill. let me ask you, we are halfway through the first, really only 15 day stretch for congress, unless they happen to work through all the recess. is that a possibility? >> extremely unlikely. i think it is unusual number one that republicans, the rank and file members are asking leadership to delay, at least partially delay the august recess. that does not happen. it is usually something the minority party asks for as a way
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to embarrass the majority party, so there are calls, but no indication they will take them seriously and i cannot think of a modern precedents for this to be canceled. vonnie: kevin, what have they been doing today? we're halfway through one of those crucial days. kevin: i think lawmakers on health care policy, you have a situation where the majority leader have to decide whether to negotiate with people like ted cruz on extending health savings accounts, or democrats. in terms of the $250 billion amount that the majority leader's office have to negotiate with, to find a cohesive unison on the front, he has toyed with the idea of increasing the opioid addiction spinning from $2 billion to $45 billion something that would appeal to moderates, but all of that said this is a very controversial topic for republicans.
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something they campaigned on for quite some time. as the majority leader moves forward, he is also working with the white house. -- andam told, was told at 1.i was told, told the white house to back off. leader whoa majority likes to keep his cards very close. vonnie: except he has been saying that he wants to work with everybody from democrats to the administration, to other gop factions perhaps, so do you see a way sahil, toward some kind of health care cooperation so we can move on to tax reform this week? sahil: he has been saying for a wild that he does not expect -- awhile he does not expect democrats to cooperate in the broader project of repealing in replacing the affordable care act. secondly, there is a path to potentially having mitch
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mcconnell and chuck schumer work together. he has said ever since he had to pull the draft version of the senate repeal and replace though that -- bill, that he will be forced to sit down with democrats to find a way forward to stabilize the insurance market. today, senator schumer sent a letter, cosigned by the rest of the democratic leadership team, saying let's sit down and stabilize the markets. he is suggesting several pieces of legislation proposed by democrats, all of which would minimize the risk for insurance companies as they take on a sicker group of patients. things like keeping impermanent reassurance fund, which expired after a few years with the affordable care act. and the legality has been challenged by the trump administration, making that permanent. so democrats are eager to get republicans past the point of repealing the law and trying to work to fix the problems, but it is not clear that the republicans are there yet. mitch mcconnell's remarks struck
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me as more of a threat to get on board. vonnie: so, so much for a policy. what about the distractions of donald trump junior and in the idea that there was cyber cooperation with the russians? how is that impacting the conversation today? kevin: there is no say just in at all that he worked with them on cyberattacks. this was a meeting in 2016 that jared kushner disclosed on his forms that were needed in order for him to get national secret clearance. this was not one of the meetings that jared kushner left off. so clearly this was another meeting from july 9 that paul manafort into the campaign manager met. donald trump junior is pushing saying he has taken many meetings. and now with the susan collins,
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there is a headline with some lawmakers suggesting that he be interviewed. we will see what happens. vonnie: thank you very much, to both kevin and sahil. let's check in on the first word news. mark crumpton. left turkeyllerson today, following a long meeting with the president. u.s. relationship with turkey has been under stress for some time now. he says he hopes things are beginning to amend. secretary tillerson has met with the turkish president three time since becoming secretary of state. and lesbian a month after brexit negotiations begin, the european union parliament is threatening a veto over the rights of eu citizens in the u.k. the legislature says the proposal will reduce eu citizens to "2nd class status." both sides say the rights of citizens are the first of many issues that must be settled. and residents of basel are
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taking to the streets -- mosul taking to the streets after victory was declared of the islamic state. pushing islamic fighters out of the stronghold, militants remain in a small part of the city. 900,000 people were displaced from their homes during the battle. for commuters that take the train to and from new york city's penn station, today began the summer of hell. amtrak will start eight weeks of repairs. the three railroads that use the nation's busiest terminal have told writers to expect fewer trains -- riders expect fewer trains. those thousands of people who travel there every weekday will use a patchwork system of buses, ferries and subways for the next two months. global news, 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. mark, thank you. coming up, what is the pipeline
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signaling for the second half of the year? --, next.ad of this is bloomberg. ♪
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♪ vonnie: this is "bloomberg markets." i'm vonnie quinn. steelmaking has been a mixed bag, so is the second half of the year going to be more of the same? we have an industry veteran. interviewing john reiss today, the global head of white & case. >> thank you for having me. >> i have spoken with a lot of bankers and lawyers about the outlook for the second year and
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may by nature they will be optimistic and they say it will be robust and make -- much better than the first half of the year. but you are more reserved with your prediction. what are you seeing and why? john: lawyers tend to be optimistic also and i am optimistic. although my optimism is tempered right now. we came into 2017 extremely optimistic. 2016 hadquarter of $500 billion of mna deals coming into the quarter. and coming into 2017 with that optimism we were disappointed. we had about $600 billion in the full first half of 2017, which is up a little bit from the first half of 2016, which was also a bit slow. volume, number of deals is down substantially. so, you put that in context with
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a very high stock market, which makes people a little bit nervous. will it maintain, continue to run? it creates high valuations. combine that with the real acertainty created by trump's parent, so far, inability to get his pro-business agenda enacted. one could start to feel a little bit pessimistic. >> is your pipeline i just into that -- adjusting to that, maybe the demand will not be there? or in other words, the buyers are another. john: i was a sort of the demand is always there, because of the dramatic amount of cash that both corporate and pe firms have, as well as the requirements of both pe firms to buy and first edicts to grow --
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strategic's to grow. the uncertainty there is causing some concern, and causing some slowdown. for example, if you take strategic deals and you are looking at a big strategic deal and you look at the number of unfilled spots in washington, how do you evaluate the antitrust groundwork that you are facing. how do you evaluate that in that circumstance. >> shouldn't the trump administration know that? if you're going to champion yourself on a pro business platform and you are not filling the positions, in the idea of not killing them is pushing back on the deal activity, shouldn't that be -- is he not getting the advice he should be getting? john: i think he has quite a bit on his plate. >> we should take a look at where the rhetoric, you have to
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imagine, is playing into the diminished deal activity and that is china and bound into the united states. it seems like you are getting it from both sides. your capital controls coming from china that are potentially restricting inbounds the u.s., plus you have protectionist rhetoric coming from the u.s. that we have not seen for some time. is this part of what is tapping down overall volume? anything you see that could change this for the second half of the year where we suddenly start to see some of these deals happening? john: ok, so china is a complicated story, very briefly them to me is the most important nowy in 2015, twice a day, 2017. -- 2016, 2017. their participation has grown to 14% in 2016. in 2016, china spent $63 billion activity in the first
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half in the u.s. it is much more in the china side than on the u.s. side. on the china side it is everything you have talked about, but in the long run china will be a big buyer. we have a report that suggests $140 billion for record acquisitions by china by 2016 outbound could grow to about 200 and $5 billion in 10 years -- $275 billion in 10 years. steve munchen was on bloomberg in the last few weeks and he was very clear that cbs -- that what people worry about, national security, in america first to me means you have to encourage from outside buyers, including the chinese. >> do you feel that that could
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mean a more bolder statement coming from the trump administration that says, we are ok with inbound chinese. and talking about big deals. there was a local deal where they just sold $19.3 billion today. may have been a big buyer recently in the united states. does the trump administration need to say, we are ok with chinese inbound activities, we are ok with about a 10 billion -- $10 billion-$15 billion deal? john: i think they said it, number one. number two, it is not a blank slate, it is not approving everything. they will be evaluated very carefully for national security considerations. >> you do a lot of work in private equity. you mentioned the valuations are high, but there seems to be a competing force where there is a ton of money still that has not been put the use because private
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equity in terms of raising money seems to be booming. in the second half is that an area where we may be start is the energized deals? we have seen a little bit of bubbling. may be dealing with ca taken private, that would be a leverage deal. you start to see maybe these $15 billion lpo's for the second half of the year. john: i think the first quarter of private equity activity was finishing the deals announced at the end of 2016 and i think by the time we got to the end of the first quarter 2016, rather 2017, and into the second quarter we started to see some more deals, bigger deals. i think private equity is a very optimistic part of our mn&a environment for the end of the year. >> john reiss, thank you very
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much. always good to hear your perspective. vonnie: thank you for that. much appreciated. apollo global management is going to be talking about the golf industry they are getting involved with. we will talk about that private equity deal. now it is time for "bloomberg business flash." a billionaire's battle blooming over encore. the battle if- warren buffett does not improve the terms for his offer. and the largest creditor for the industry's future. and allowing proposals with better valuations. and going out of business, this after 18 years. according people familiar the matter the company with wearable technology has struggled with manufacturing issues. they haveo says
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jawbone'sb own -- new health of. -- hub. comes as aen light stress test for santander last month. they are looking to acquire and neither 9.7 -- another 9.7%. and that is your latest global news, 24 hours a day powered by more than 2600 journalists and analysts in more than 120 ever coming and fitch thinking this morning. we would take a look at that. this is bloomberg. ♪
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♪ this is "bloomberg markets." abercrombie & fitch terminating
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ofks, dashing hopes investors who saw it take over as the best way to rescue the retailer. alex sherman is back with us to explain. what does it have? alex: has a brand that is tarnished, at this point. and i think part of the reason the deal did not happen is if you just take a look at the revenue and net income of the company over the past few years. it has been a stark downturn, the estimates perhaps even worse on both ends. you come into this and you say, well, abercrombie & fitch needs a new strategy and i think that was part of the idea here. let's talk to american eagle or we will try to speak with others potentially, take it private. we have seen other retailers go private, j. crew. but i think there is still very much, the jury is out on whether or not these will be success stories, if you do take them
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private. or if you make them public companies again, what do you have? i think they went through the process of it and probably found from the buyer perspective, there was not anybody there. they need to offer a certain price. vonnie: that is the thing. it is down to about $10 a share at this point, all the way down from in the last few years, $22. it is a steel for any private -- steal for any private equity. alex: and i think there is promise. even as a flagship, abercrombie and fitch has suffered. but they have a kid line. it is not like they have no assets. they have suffered a little bit of a lot of companies do, when my jeffries stepped -- mike jeffries stepped down and when you lose a leader you lose vision. vonnie: this is more a secular story of the changing winds in
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retail. alex: it is all over the place, where struggling brands need to figure out, how do i become something different when all the attention is going online and as you said, the idea of brick and mortar has gone out the window. can you successfully change? vonnie: we shall see. alex, thank you. mn&a reporter. apollo global management betting on the golf industry. we will discuss the billion-dollar purchase of club core -- corps, next. this is bloomberg. ♪
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vonnie: live from bloomberg world headquarters in new york, i am vonnie quinn. "bloomberg markets." -- this is "bloomberg markets." let's get a check of u.s. stocks
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now roughly through the session. the s&p just outside of that range that we have been seeing in of 2429 and the nasdaq is the clear winner today, up 4/10 of 1%. this is as the vix stays below 11. let's get to abigail doolittle to see what's going on. julie: the major averages are higher on the day. abigail: the russell 2000 is lower and this is one of the reasons why because of absolute collapse of the shares of abercrombie & fitch. today is the worst day since november 2000. you were just talking about the fact that the company terminated the possibility of being bought out. they think the best path is to regularl rigorously execute the business plan. analysts are either neutral or bearish, recommended to sell the shares. today investors clearly not
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sharing that news. it is dragging the department store space. we are looking at the like of macy's, kohl's, and nordstrom. we see some big selling pressure as well. this is one of the beaten-down spaces on the year. macy's down 40% this year. thisps investors think offers others a less chance of being bought out. consumer staples away from consumer discretionary as we have the likes of costco, walmart, an trading lower. downgraded with an analyst saying the lack of positive stock reaction speaks to the investor sentiment on the start and the fact that investors perhaps our fee from of what amazon means for the overall retail space. that is weighing in turn on walmart and target. consumer about discretionary names and consumer staples. one consumer discretionary name
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doing well is tesla. we see that it's up about 2%. serious volatility earlier and tesla had been down on the day. this was after the stock had its worst weekly week since february. the positive news at this point is the fact that the company did roll out its first model three last week. if we take a look at it production graphic, we take a look at what is happening this month. they are expected to produce 31 vehicles in august. 100.arget is look at the big ramp up into december. that is great if they execute, but it will put some pressure on the company. a big way,s down on but the shares technically look really pretty solid. vonnie: we shall see. it will be a few months before we know. abigail, thank you. the golf industry get a
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mulligan? firmprivate equity is spending billions of dollars for club core holdings. joining us now is jason kelly. is downation and golf tremendously and courses have closed. there is a core of true believers that will pay money and are able to pay the money to keep going. jason: you are a true believer, right? you like to get on the golf course with the irish roots. it is a game that people are still willing to play and eager to play. and most importantly willing to spend money on, to have these memberships. that's part of what is attractive to a private equity buyer here with this ongoing recurring revenue that is coming in through these clubs and putting them all together. you are talking about real money here. vonnie: it's a real renters kind of market. people in the story like somewhat of 430,000 members
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paying dues every year plus responsys. restaurant fees. why isn't it working for these courses? jason: it should work and it should work in terms of a scalable business. what you have seen with this company in particular is that they have been pretty acquisitive. private equity is in the business of making contrary and bets. they don't need golf to be popular forever, but popular for five to seven years in a way that they can sell it or take a public again down the line. vonnie: they need to streamline it a little bit. once the architecture has been done and the land has been bought, surely it is a fixed cost after that. jason: while club corp. is known for golf courses they have private clubs around the country. there's geographic and product adversity here. you're talking about dining
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clubs and social clubs, even in and age of snapchat twitter come with people really do want to get together. if you look at what you see in the broader fitness industry with the rise of boutiques and and crossfit, people are not giving up on socializing. people are not giving up on socializing around the idea of exercising. vonnie: nike gave up and golfsmith went into bankruptcy. it has a terrible reputation as a fuddy-duddy sport. how does that change or does apollo care about that? jason: apollo cares to some extent and there are some headwinds within the golf industry. what you have seen his golf try and get it little bit younger. another tigeridly woods, someone to really invigorate the sport. over in europe, the have rory mcilroy and folks like that who have reinvigorated it to the
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extent that it needed to be reinvigorated in europe. there needs to be another big american star who can really drive participation on the younger level because candidly twentysomethings feel like golf is really candidly my dad sport. it is not something my dad will -- i will play every weekend and ultimately pretty expensive. vonnie: from mission hills, it is somewhere between $35,000 and $40,000 a year to join. that is mission hills and there are plenty of options. i want to ask you about apollo. they do not seem to be making -- do seem to be making a lot of noise. jason: it takes its roots all the way back to drexel bird of lambert. they created apollo and this is a firm that really does like to make some pretty aggressive bets on underperforming companies. they have been very successful in that and they have been very active lately. they bought adt as one example. most notably, people in the private equity world are talking
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about them because they are out on the road raising their latest private equity fund, which could be upwards of $22 billion, which would make it the largest and ever private equity fund. vonnie: there's no shortage of people wanting desperately to get their money. where does apollo find more deals? jason: they're looking all --und, and publicly trading and publicly traded companies and underperforming private companies and also where private equity tends to shop in times like this is within bigger companies to carve out and underfunding -- underperforming division of a company. vonnie: jason kelly, literally wrote the book on private equities. let's get a check on the first word news with mark rich crumpton. mark: president trump is defending his decision to allow his daughter to sit in for him during the g-20 summit. and it's week, the president
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wrote, "when i left conference room for short meetings with japan and other countries, i asked ivanka to hold seat. angela m agrees." that's referring to angela merkel. fire tore through camden market, causing major damage. there are no reports of casualties. 28 million people visit the markets 1000 shops, restaurants, and bars every year. a fire in 2008 nearly destroyed the market, closing it down for over a year. a british court has given the parents of 11-month-old charlie gard a chance to present evidence that there terminally ill son should get treatment. previous court ruling said the child cannot receive treatment for a rare genetic disease and he should be taken off life support. the application came after pope francis and president trump brought international attention case.
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syrian officials arrived in geneva today for cease-fire talks and to bring in and to serious devastating civil war. this is the seventh round of indirect talks as you and envoy shuttles back and forth between syria and opposition leaders. the talks came on the first day of a cease-fire in southern syria brokered by the united states, russia, and jordan. global news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. vonnie: mark barton, thank you. coming up, it is prime time. they claim they're getting ready to support the annual day of deals. we're live from seattle next. this is bloomberg. ♪
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vonnie: business "bloomberg markets." -- this is "bloomberg markets." i am vonnie quinn. amazon is gearing up for its third annual prime dan tomorrow. that is when sales go on for prime members. fleet has its own of planes to help. cory johnson is live in seattle. wise amazon releasing its own fleet? cory: this is one of the 24 planes that amazon has in its fleet. this one will be operational later today because they have a lot of stuff to do. amazon prime day was their biggest day of the last day. it really highlights the logistics operations that amazon has. also massive, but it's changing in scale. they have a hope of fulfillment we all feel so
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fulfilled in our hearts. they are much more close to consumers now. they have same-day delivery and consumers. andl are moving products the consumer move so faster. is it a cost concern? you mentioned street carriers along with the last mile service. is it a cost concern or a marketing concern or do they want to get into that business as well now? cory: it would have been cheaper to leave the plane white.
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certainly they are thinking about their brand right now. this is not a company that tends to stroke its own email too much -- ego too much. it's also good branding when they are talking to consumers and to other carriers themselves who are going to see this and cargo holds like this one at seattle's airport. we talked to the vice president of operations for amazon about the specific uses of this kind of plan. check it out. >> almost all this is actually package transport. what we do is some of this is direct package transport, meaning instead of having to go through a hub, we know we have a large portion of volume going from the west coast to the east coast. we can fly directly point-to-point and take a step of the process, which allows us to make the cut off much later for customers. cory: again, it sounds a little ridiculous like the amazon people are always about customer, but they really are. they just want to talk about customers. this is how they think about
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this business. they have so much demand that they can create this custom route to fly something from new york to seattle or fly something from: this to phoenix. and they just do and they are moving so much product that they can actually supplement what they're doing with other carriers with the specific one-time routes that only their only airline will allow them. vonnie: put it into perspective for us. sought $18 billion on its single best. s day. what are we anticipating out of prime day? cory: last year was the biggest shopping day of the year. in the fourth quarter, amazon saw 32% of revenue during the 13 weeks of the fourth quarter. it's interesting they are able to create demand around the day at a time of the year when they might not be otherwise as busy. that helps them justify the costs that they have spread out over the course of the year.
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the kind of cost and infrastructure they have to build up for that fourth quarter. primes the pump by creating more prime membership and creating aconsumer awareness around prime so they have more of the prime customers to get them ready for the fourth quarter and that big shopping, but also the other services and offerings that prime customers get exclusively through amazon. nowie: let's move to tesla because we also got some interesting news about tesla. elon musk is keeping the first of the new models for himself, at $35,000 model that is glass from front to back, but otherwise a simple electric car. tesla will make hundreds of thousands of these soon. agree or disagree? cory: i think it will be adjusting to see what's in the car. elon musk has one that this will not be a model s. cost $90,000 plus for the model s and they lost money on every car, how much is it
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going to pull back futures on the model three? what is left going to be attractive to consumers? they are betting it will be much more attractive than the model s. their suspicion on wall street that the model s and the model x have plateaued in terms of popularity. can a model three, a strict down version of the model s, have a much greater appeal for consumers? what will that price really be? will it really be $35,000? what will come included with that? they offered a cheaper tesla model s in the early days and it proved not to be very popular with consumers. they ended up going upmarket for a higher price car. we will see what the car is and we will see what it costs. those questions are still out there, but elon musk certainly deserves the first one off the line if he wants. vonnie: it was a gift from a board member, his token for the first car off the line. even a stripped-down model, where you wait for the new
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wheels coming in the future and you wait things, will that -- why wouldn't tesla be able to build a lot of those fast? it's just a car. it's just made from lightweight aluminum and cheap steel. cory: they can build as many as they want. the goal is to sell them. we will see how it goals. to be commended for getting this car out the door, but the goal is to get lots of them out the door and we will see how popular it is with consumers because we do not know what the car will be yet and there's a lot of questions about that. vonnie: cory johnson at seattle-tacoma airport, waiting to get on for delivery on the primary from amazon. it is time now for bloomberg business flash. mondayen a huge merger in asia. companies announcing $19 billion worth of transactions in 24
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hours. included in the flurry with sun at seeing china's biggest ever property acquisition and a $9 billion deal. it is to create the biggest shipping company for pacific trade routes. westar and great rain changing industry operates regulators utilities in kansas and missouri. the boards start of merger with no premiums and exchange. an initial offer by great plains for westar was rejected back in april. raised their takeover offer for german drugmaker start a to $6.2 billion after an earlier acquisition attempt failed last month. bain andsin bin -- cinven are looking for an
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exception and that is your latest bloomberg business flash . hidden identities are popular feature of the twilight world of virtual money. how one crypto traitor made money in just a month. this is bloomberg. ♪
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♪ vonnie: this is "bloomberg markets." i am vonnie quinn. let's get a look at the data right before 1:00 p.m. eastern here. the dow is paring some of its gains come up 26 points to one 140. the nasdaq composite index running away with things up for tens of 1%. a look at treasuries and a look at treasuries and the 10 year yield at 2.37%, just lower than what was that as of last week.
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that 210 spread just below 100 basis points. it, but fewks about people seem to do anything about it. jim berry is the exception when it comes to infrastructure. he is the global head of real assets at black rock and manages $17 billion, specifically targeting infrastructure investing. earlier, alix steel talked to jim berry about the giant mason project that promises to disrupt hundreds of thousands of commuter lines over the next eight weeks at new york city's penn station. jim: ball investors are interested in projects like that and penn station is estimated. it is the poster child for the state of the american infrastructure. what you are seeing is the patchwork activity th the summer to keep it safe, but it's been under investment decades now that commuters deal with on a daily basis. it requires tough political decisions and yet the cost is
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typically born in a very tough use and non-cash way for commuters. it is only when you got the safety crisis that is really consumer events that you get political action, but it's tough. forink the challenge president trump and the in ministration is coming forward with a program that will get the capital to move in short order. alix: when i talk to guys like yourself, they tend to say i like energy infrastructure and i like alternative energy. they do not say they want to rebuild the tracks over at penn station. jim: they do, but it has to be offered to the private sector in a way that makes sense. just saying, put money into penn station will not work in its own right. what the government and agencies like amtrak need to do is develop a project that makes it clear with project boundaries that want to bring contractors and equipment suppliers to their with the capital to deliver some form of structured like a public-private partnership, but
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that's tough. if you look at international president, takes three to five years to mobilize any substantive tpp type program. it's to give existing agencies like amtrak cash. it's not for people like ourselves, but the reality is everybody in the global infrastructure investment world is looking at the united states, looking at the in ministration, because it is an energy and power market. that is what we have substantially invested in in this country. the market is open and ready if there is an addressable investment opportunity. david: is that really the essential difference? an energy area, their companies with cash ready to go. it is really commerce. the cash is there. it is the projects. jim: in the energy sector, you have deregulated markets and you have private sector activity. yet oil and the big pmp players. it's already geared up for the
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private sector capital. this is not a capital. this is about the projects. vonnie: jim berry earlier today on bloomberg. later on, we will head to penn station for a one-on-one with amtrak ceo rick moorman. that is at 4:15 p.m. eastern. once again, take a look at where we are at markets at 1:00 p.m. eastern. treasuries and commodities are probably the more interesting areas. the vti crude update tense of a percent. stocks are higher. stay tuned. more markets next. this is bloomberg. ♪
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david: it is 1:00 in washington and 1:00 a.m. in hong kong. i'm david westin and welcome to "bloomberg markets: the trump economy." here are the top stories we're
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watching at this hour. fact to work -- congress returns from the fourth of july parade and they face a logjam on tax reform, the budget and infrastructure and they only have three weeks to go before the next recess. doors, donald trump junior secret meeting with the russian lawyer to get damaging information on hillary clinton during the 2016 election. this as president trump's ideas of teaming with russia for cybersecurity gets panned. some are upheld. that is what the new york governor says commuters are facing when the work is underway for repairs on penn station, the busiest train station and the united states of america. what to tell us about the trump administration's infrastructure plans. vonnie: let's get right to politics now. david:

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