tv Whatd You Miss Bloomberg July 10, 2017 3:30pm-5:00pm EDT
is the seventh round of indirect u.n. as you and envoy -- envoy shuttle between leaders. a cease-fire in southern syria brokered by the united states, russia, and jordan. >> they are basically broadly holding quite well. i know in all these agreements, there is a time of adjustment. we are watching that very carefully. there have been incidents at the beginning and sporadic incidents but we can still say that we believe that there are fairly good chances of working out. protesters walked the streets of venezuela's capital city caracas today in the latest demonstration against president nicolas maduro. opposition leader sounded the call for supporters to stop vehicle traffic for 10 hours. sunday marked 100 days since the
protests began. the associated press reports more than 90 dead and at least 1500 injured during those 100 days. former president obama said to make a rare political appearance this week, expected to attend the democratic fundraiser in washington on thursday. mr. obama has mostly stayed away from politics since leaving the white house, working on causes for his foundation and on his presidential library. more americans are spending their golden years on the job. older 90% of people 65 or are working at least part-time the second quarter of this year. the employment population ratio having been higher in 55 years. global news 24 hours a day powered by 2700 journalists and analysts in over 120 countries. this is bloomberg.
julia: live from bloomberg world headquarters in new york. joe: scarlet fu is off today. and we are 30 minutes from the close of trading in the u.s.. julia: u.s. stocks following europe higher. joe: the question is, what did you miss? julia: congress is back in session. can president trump deliver on any campaign promises given the backlog. next market shop, they join us at the close. live it can station in midtown manhattan, just in time for your commute home.
joe: now let's look at where the major averages stand. bloomberg and abigail doolittle standing by. ,bigail: we have gains fractional for the dow, medium for the s&p 500, and solid for the nasdaq up about .5%. helping the nasdaq outperform. but the s&p 500 putting up its best two days. these are some of the top stocks for the s&p 500 out of each of the four top sectors. space, thenmaterial the industrials, energy. first mosaic shares. the fertilizer company rallying. midwest, we the
have nvidia rallying in a very nice way. $200, nicely higher and not great over it jpmorgan. and apache corp. up 4.5%. it doesn't seem to be anything new fundamentally happening but we have lots of movement in oil. .e can see this earlier today, oil was down more than 1%. and trading higher almost by 1% now up about .5%. investors weighing technicals and the fact that kuwait said that libya and nigeria they be asked to cut reduction. the increase while much of the rest of the world has been cutting. investors weighing matt and as far as what could be next, the energy sector is worse. #btv 299. a great chart of a moving range for oil.
and in blue is the 33 day moving average. he said it was a very reliable moving average. it certainly appears to be here with this moving envelope. and off of the rally, the moving average back down that we could see some more declines in the very near term, despite the fact that we do have oil up slightly today. julia: let's get right to politics. it battling health care and tax reform. donald junior complicating the picture. let's bring in our washington roundtable to set the scene. house, us from the white joining us and capitol hill. i will start with you because you have been banging on about this congressional calendar for many weeks now.
not only three weeks to try to get some form of progress on health care reform but also implications getting anything from tax this year. >> they fall a little bit further and further behind every week. some other budget deadlines coming up, they don't have health care done or a clear endgame getting it done. and they have not a lot of time to do so. these lines are getting closer. due to divisions between moderates and conservative republicans. that's the prerequisite to get anything moving on taxes. they have to accept flood insurance, they have to keep the children's health insurance program alive by the end of september. they are going to have to raise the debt ceiling sometime in mid october. it just doesn't leave a lot of time to do anything else, especially when you consider the political capital republican leaders will have to spend to
get anything done. his trump is done with overseas trip and there is this new russia story that's not going to help anything. how much of the failure to pass big legislation is difficult inherent in getting republicans to agree with each other and how much is it a distracted white house that hasn't been very effective at corralling the party? kevin: it's a little bit of both. i was with sarah huckabee sanders and she answered questions about his latest new york times story that says donald trump junior met with the russian president affiliated lawyer on june 9. and also jared kushner. -- jaredctually kushner should have disclosed that he was trying to get a national security clearance. he came under intense criticism for not fully disclosing all of
the meetings that he had with several folks connected to russia. the white house is saying that all of this was publicly disclosed. and that, in fairness, he was not applying for the national security clearance. the former campaign manager also filing additional paperwork. welcome to working with any congressional committee that is investigating this matter to provide information to them. that is the latest tweet coming from him. but as far as this influencing thaty, they suggest to me they have a strong -- that this was put behind them. the fbi director will testify before the senate judiciary committee. house chief ofe
staff said this was a nothing burger. i quite like that phrase. why should we care? why are they making a big deal about this for reasons other to create concerns about russia again? kevin: that's a great question. in terms of why all of this matters is the national security clearance. several top advisers and the inner circle need to file intense paperwork, vetting them in terms of obtaining a national security clearance. every meeting that they have with international counterparts must he put forth in order to clearly be vetted. these are folks that are representing the united states in intense meetings that deal
with national security interest. he amended it. and as a result, every meeting he has done is now disclosed. democrats raising questions about this. some republicans suggesting to reporters that they should be asking, having these folks testify before the committee. i can tell you christopher will aboutbt face questions how he plans to pick up the investigations of now fired fbi director james comey left behind. legislative front, is any progress being made on health care behind-the-scenes? >> it is not clear to me that it is. based on looking at what republican senators have said in the last few days, the last week dealing it home with the
constituents. one is that the left is more energized tried to kill the bill than the right is getting it across the finish line. it is not a lot of optimism that they will get this done. you have senator grassley in iowa saying he's more pessimistic than he had been before the recess. senator cruz has also raised doubts about this. senator collins doesn't seem closer to yes. nor does senator heller. republicans that said they could not vote for the existing bill. it's clear to me that if republican senators want to get the conservative vote of people like ted cruz, even ron johnson, the amendment that would allow to sell skimpier plans, it would be one way to do that. it just moves the moderates further away.
striking that balance is difficult. he could lose 20 republicans in the house, and he did. it is just a much tighter squeeze. it not clear to me they will get it done but i wouldn't underestimate mcconnell or his desire to get it done. dealing with health care first, just the financials. introducing some form of tax cut repeal, it will have financial implications and it will hit them, whatever they can do financially with a tax bill. leave healthg to care because they can't make a decision and we want to make sure we get something else done, even if it is just minor tax adjustments and not some bigger form of transformational tax plans that they've talked about in the past. kevin: that is absolutely true. putting aside considerations for why they want to do health care before taxes, they can't move the taxes before they dispense
with health care one way or the other. they are using the reconciliation process that they can only do once every fiscal year. they cannot move to the next reconciliation until this one is either past or dispensed with. dispense tax reform legislation on reconciliation for 2018, the health care one goes away. they can't do them both at the same time and you are correct that they want to do this substantively and policy wise to establish a tax basis. they can't get that through. they can't begin moving on that until they've decided what to do with health care. much, kevinou very cirilli, bloomberg's. and the bloomberg national come -- reporter, thank you very much. vacation, thee a world waits. coming up, statements from mario
julia: time for the bloomberg business flash, a look at the biggest stories in the news right now. at the cost of the most expensive weapons program in u.s. history is rising. atal acquisition costs lockheed martin's next-generation fighter are expected to spike around 7% to nearly $407 billion. betting big on gold turnaround. the country club operator for
over $8 billion. properties include california's mission hills. the transaction is expected to close in the fourth quarter. ubs has raised $325 million for a new growth fund backed by activist bono. it makes them the biggest protest tent in the rise fund that seeks to spend $2 billion on ventures and offering environmental and social benefits as well as financial returns. the bank pledging to raise $5 billion over five years for sustainable opportunities. that is your business flash update. joe: what did you miss? an apparent about-face from ecb president mario draghi sent traders rambling in recent weeks. draghi said the eurozone was not generating enough inflation but recently took a more hawkish tone. markets now pricing into 2018 rate hikes.
with us to break the recent action down, the senior european bank tech that joins us over the phone from geneva. thank you very much for joining us. where do you see market expectations for the ecb versus how you interpret draghi? has the market.net right? significante a pricing, for sure. but the question is if markets were complacent ahead and before this speech. i think there was a bit of complacency and may be a bit of wait and see attitude before the ecb changes forward guidance. board guidance from central similar particular is to a state driver. if and when it changes, it may trigger some reaction and volatility spikes. i don't think the market is completely off track and
inconsistent with what the ecb has been saying. sooner or later, it will be a rate hike. indeed move the curve. been a storyways going on at the same time. anything that is why it is so difficult to distinguish between market expectations and the liquidity effect. julia: that is a huge point because is much as we can point to confusion over mario draghi's words, we have noises of other european central bank board members as well a looting to the same thing. you think whether or not he made a mistake overplaying his hand, do you think the language they are using here has to do with fundamentals trying to create repricing? or two constraints, the technical constraints you were mentioning their. >> it is a combination of everything, but when you read
the speech, the first thing he said is that everyone in the ecb is getting more confident about the recovery, stating the obvious. economic data has been strong. is better than what they hoped for. but he also said that he needs persistent,t and something the chief economist said again. and even the more hawkish members would agree that there is no said to -- there is no disagreement fundamentally. and when it comes to the modality, there might be some disagreement in the future if and when they have to taper depending on the timing. >> big picture. people are optimistic about the european economy. but there have been bouts of optimism in recent years.
2016, 2017euro boom -- is it more real this time? what is the difference now? >> we have been there before, you're right. thatiggest difference is unemployment is coming down very quickly. it is something that speaks to everyone and something the ecb factors in. of the unemployment gap and the potential pressure it will eventually generate. that is the biggest difference. i was going to ask you if there is space for repricing? at what point does their fair value given the fundamentals? i was going to say the political landscape has changed and it also has a major impact on the longer-term fair value.
again, assuming the ecb so,tually ends qe, but hope then they likely come closer and is likely to be in a more optimistic range relative to a couple of months ago. they most likely have a window of positivity that could lead to a more efficient euro area. at some point, this is a game to higherd could lead threats. frederick, you talked about the decline in unemployment and the pressure it theoretically puts on inflation. it does the ecb have the same structural challenges to conventional models we are seeing where the relationship is not perhaps a solid as people think between unemployment and inflation? >> absolutely. it is most likely flatter and
nonlinear. the ecb is more in line with ,hat potential advantage looking at what has happened in the u.s.. economist, european thank you for joining us. julia: we will be taking a deep dive into the bloomberg. if you have a terminal, check out tv . you can watch us online. interact with us directly. the future of tv. exactly. from new york. this is bloomberg. ♪
that tiny flick higher which is what we have seen, it and it has lifted the financials. take a step back and look at the white line and what that is showing you is positioning. it shows you 10 year positioning. what that is saying as far as positioning is concerned, the lower that line comes, the less likely we are to be steepening. this is suggesting flatter curves, not steeper. and i am looking at investor positioning in gold. this is aggregate positioning. shooting up at the same time as gold itself, the blue line doing very ugly these days. higher rates, all that stuff is but anyprecious metals sort of repricing, perhaps the central banks are not going to be as dovish. was.: how low gold
>> "what'd you miss?" stocks and monday session in the green. least.hs at [applause] >> i'm julia chatterley. >> and i'm joe. scarlet is off today. in live onuning twitter, we want to welcome you to our closing bell coverage, every weekday from 4 to 5 eastern. marketegin with our minutes. i want to go straight to shares of snap, actually hitting their price. this is $17. actually fallen to that level in the session today. but i'm giving you a quick look terms of happening in the individual market here. we've got the dow ending the unchanged.atively s&p 500, and the nasdaq, by some 1/10 of a percent, in line with what we were talking about stocks are the tech the real gainers here.
8/10 of 1%. some of the stocks that have been beating up most, actually back some gains here. giving you a quick look at those, you can see the likes of facebook, alphabet. some of the biggest gainers. on the downside, the likes of estate, of tele communications. also watching abercrombie, best buy. prime day, of course, for amazon. fitch,rcrombie & actually, the biggest mover, as you can see, in the session today. down some -- what was that? 21% in the session. is off.hat the deal the takeover negotiations have failed. it's terminating talks with any potential inquirers, dashing ofes for the investors something to rescue the retailer and rekindling its appeal with
shoppers. happening. >> and let's take a look at the government bond market. in aer day than we've seen while. yields a little bit lower. ten-year yield, which really had been moving solidly high, modestly lower. downerman 10-year yields, to.54%. >> quick look at currency markets here. move in the bond markets. little story to tell in the dollar index. obviously making -- what does anything elseay about evaluations as well? quick check on what's going on dollar and dollar yen. deutsche bank doing and about their forecast. 117. 2018.he level by just to give you some sense of how they've changed, that was in euro dollar and 95 for 2018.ck end of
oh, boy, how things change in europe. aick look, just to give you sense of the top performer in the session there is mexico, as you can see. some 8/10 of a percent cellive to the dollar. >> and finally on commodities, we have oil, a little bit higher today. not a ton of action anywhere. gold up a little bit. 3%.er wheat, up nearly a lot of volatile trading continuing in the grain market. today's market minutes. >> so it's an interesting several sessions for the bond markets. were talking about mario draghi and the impact, of course, of his words, not only but moreropean market broadly on the united states and global bond markets too. this further. our chief strategist of quad group joins us now. to have you on the show. >> it's great. i've been stressing all day this moving fivethe dow points. >> i know. horrible, isn't it? hold on to the desk.
figuringing deep, out -- >> do you have any deep insights on today's stunning market movements? >> ha ha! >> normally as a strategist, i tell everybody what to do during today was a i think perfect day to do nothing. >> valuable information. fair, it's -- we have to talk about this on a daily basis. lower, then they -- >> actually, not to be facetious. a lot of time -- market spends a lot of time doing nothing. reprice. our job is to look for that repricing. there's nothing like a supply a commodity to get one excited. soybeans, wheat, or corn, they've done nothing. then they reprice. oft's the next thing to sort reprice, if you look there? argue that it's actually sort of gold to the downside. at all.t rallied crude stabilized. though we're still negative on
crude. the commodities have rallied somewhat. lumber, which sort of entered into a bear market, and that stieblized and bounce -- and bounced somewhat. you look for markets that aren't expectthe way you would them to. and therefore, when they start showing weakness, that's in this case, you might want to look to sell those. and you look at that long-term up a goldf you pull chart, you know, below 1200 could be a very, very fun trade. >> so we've got to watch 1200. gold?w could it go on where would you look next? >> i guess if i was gonna pick a, you know, a more serious to finish the whole move from the top, i'd have to get closer to 1,000. last time youthe were on, i think, we actually led the show with soybeans. that stood out to you, because at that time, soybeans were selling off. and we were like, that's interesting, soybeans leading the show. obviously zooming up in the last couple of weeks.
lote been talking about a of grains and beans on this show lately. so what do you make of this we've seen across the soft eggs? demand, that supply and works. >> shock. >> without, of course, finding demand. in that drives prices higher. weather matters. rain matters. hot, dry. not a lot of, you know, ability grow here during the early harvest period and you're november beans, later on. so that is a shortage. isthe same time, the dollar a little weaker, so that's gonna pick up demand from abroad as well. markets, economics work. less supply. demand. bit more boom! big shift in prices. >> so if we take out everything assetsu said in terms of there and we put in bonds, which is where we started the conversation, does this feel like a market that is -- to me --so bonds
sentiment-wise, every time there's a little bit move up in everybody gets all excited. >> yeah. >> where are we? back to where we were in the middle of may. so we were here. we went down to 215. now we're back to almost 240. we had the employment numbers, a little stronger. wage growth. so, again, market is doing nothing. we're sort of in the middle of nowhere. excited to be one side or the other in that trade now. storylways fun to tell a that bond yields have to go up. i think i've heard that story. like putting it to bed. >> so you mentioned gold as on theomething to watch downside. what else are you excited about right now? radar? else is on your something that could take a break in one direction or another? think the last time i was on -- i only remember the stuff i was right about.
we talked about a relatively quick move down into the 40's for crude. we're here. if you look at natural gas, if back toat -- again, go supply and demand sig dynamics. every single one of our policies adding to supply, making it easier to drill, less regulation. we're not seeing the demand. one could argue, if we want to go into sort of the amazon, that you're sitting on your couch. going to thel like store. that affects retail. so i'm consuming less. using lessle, i'm gas. we think there could still be pressure on crude and maybe, ifbe we'll see what happens 40.eaks its head below >> the stocks still look very expensive. they haven't repriced to the same extent. >> if you pull up a chart of exxon mobil or pull up a chart we like to think of -- our time sort of frame is sort of one week to three months.
technicals andt fundamentals. the fundamentals of demand aren't there. and technically, these charts like they've consolidated, ready for another leg down. >> and we got -- i have a chart here on the bloomberg. it's a five-year look at exxon. still nowhere near the lows that saw in, you know, 2015 when oil was really falling. fairly high, you know, still a bit off recent highs. >> way off its highs. remember, markets spend a lot of time doing nothing. reprice. if, for those people that actually try to trade and look risk-rewards, more money tends to be lost by anticipating something rather than being patient. of consolidation, we want to be patient when we see the breakdown. we'll go with it. we're wrong, then we know we have a place where we can lean on risk. go witheaks out, we'll it that way. >> peter. stick with us. we're going to talk to you about the broader world of macro and whether fun strategies are
>> it's time now for first word news. house spokeswoman said president trump only learned of a russianmeeting with lawyer in the past few days. she also said the only aspect of donald trump jr.'s meeting is that details of it were leaked to the media. threats against congress, including last month's shooting louisiana republican congressman steve scalise are on rise. capitol police have already investigated more threats against members of congress this of 2016. in all there have been 950 threats as
902 last year. secretary of state rex tillerson kuwait, where he's meeting with the country's foreign minister. tillerson had a long meeting with turkish president recep erdogan. he says he hopes things are beginning to mend. has met with erdogan three times since becoming secretary of state. uninsured u.s. adults is increased by two million this year. widelyaccording to a considered indicator. losseslup index found were concentrated among younger adults and people buying their own policies. currently proposed republican legislation, an additional2 million americans will become uninsured. global news 24 hours a day, by more than 2700 journalists and analysts in over 120 countries. this is bloomberg.
>> thanks, mark. with peter, quad group chief strategist. you know, i think for years, since the financial crisis, a lot of macrom traders that this was a tough environment. things were going to change. has it really happened? the old macro system fundamentally flawed, and does it need to change? >> whoa. that's a loaded, tough question. >> ha ha! no, it's not fundamentally flawed. it's a race. right? stay inas a hedge fund business long enough for the -- equity markets correct, before there's policy change? sort of a to throw in game of thrones notion here that started andon has the fact of the matter is that to happen after long periods of complacency.
extremely long period of complacency. it doesn't mean something negative is going to happen immediately. diversifiedave a portfolio. should you have hedge finds as it? o yes. size matters, hungriness matters. does a 25%nk turnaround in the euro. deal.ike, ah, no big everybody thinks fixed income markets are going to do something. they will eventually. and a question of patience risk management. for fees are you paying that patience? i don't believe for a second that the two and twenty business over. i'm talking my own book, of course, and i'm really good at that. get totters is trying to the low to mid teens returns to justify those fees. you do that by, in our case, having sort of capacity
alpha-generating strategies. we're not in the business of gossipping. i don't care whether, you know, the 10-year is going to two or going to three. what matters is the path. gonna makewe're money. that's how active macro managers will make money. is not over.ss it's adapting, as it always does. >> why are some of the best-known names in the business struggling? took in a lot of assets. it's more difficult to move. itself --vironment you've had this volatility compression. coiled rubbera band. and it will break. that's why i call it the race. longou stay in business enough until that, you know, spring starts popping back out? they're not -- they haven't lost their intelligence. i just want to say that. they're all super smart. but like every great ball play ar, you know, you go through slump. now you as an investors have to
out, has he lost his skills or is it just a slump? >> it's tough for confidence. >> yeah. this is a difficult business. there's no question about it. and you can lose your confidence easily. >> i want to talk politics real quickly, because i think one of on,previous times you came you talked about the sort of gap between how the enthusiasm a lot felt towards trump and the reality, which you were kind of skeptical of, whether policies would really generate the kind of growth they were hoping for, has that gap expectations and the reality closed at all, in your view? >> no. the gap has probably widened even further. equity volatility picks up, and people start to ise some money, that gap gonna stay wide. i happen -- now, again, i always i'm a come -- i come up from the future side of the so i believe in transparency.
i'm a democratic that believes in markets. think the policies, there really hasn't been a whole lot economically to be in place, and -- and hoping and wishing is not really a great investment strategy. shall see whether he can turn it around. sorry we have to lose you so soon. coming up next, we'll hear from c.e.o.,rman, amtrak about the transportation hub's makeover. from new york, this is bloomberg. ♪
>> i'm here with wick moorman, the c.e.o. of amtrak. owns penniously station and is leading the work that's begun here today. so much for joining us. it's day one of the eight weeks of major work. how has penn performed so far, and do you have any estimates of how many people have used the today? >> we don't have any hard numbers yet. we had a very good morning commute. we're ready now to see what the first afternoon commute looks like. count hase passenger been down some. some of that may just be because people have chosen alternatives. some may be because it's still coming off a long holiday week or vacation. trains ran on time. and so far, so good. >> that's excellent to know. confident are you of meeting the labor day deadline? >> i think we're very confident. very three reasons. first, we've done an extraordinary amount of planning kinds. second, we have a very competent, trained workforce who do this kind of
complex work. and the third, we have the ability, if we get towards the of august, and we have any concerns about time, to button up and maybe finish a couple of things in weekends afterwards. we're prepared to be ready by labor day. >> and what about commuters? responding to the work that is ongoing and how do they'll respond if it does go beyond september. >> i think they would be very unhappy if it went past september. which is why we're not going to do that. really it comes from the users of the long island railroad and new jersey transit. and large, all of the things i've heard is that it was a reasonable first day. how it continues to go. but remember, a lot of planning part of all of the parties has gone on. and people have known about this while. a so they've had the ability to make some alternative travel plans.
it's unplanned disruptions that we're trying to avoid. hopefully it's something everybody will be able to manage. >> now, there have been decades underinvestment in infrastructure. at twice itss design capacity. amtrak has many more big jobs it.d of how will future disruptions compare? will other big projects require longer shutdown? >> no. in fact, it's exactly the opposite. are doing the most difficult work that i'm aware of in the station. this summer. and, yes, we're gonna continue work, extensive weekend work. we're gonna have a few periods we have one track that we have to rebuild. but we don't see anything this anytime in the future, right now. having said that, there's always work to be done. have to manage it as efficiently as we can. >> now, the $24 billion gateway
project, building a new tunnel under the hudson river. the present budget would -- the president's budget would eliminate capital funding for that. that?e you dealing with >> we're doing a lot of work with the administration. secretary cho has been very receptive to listening to at the and looking project. had very good conversations with them. and the president is very aware of infrastructure, particularly infrastructure in the new york area. these are vital projects. if they're not done eventually, shut down the essential transportation mode between here and new jersey. say i'm ans optimist. i think this will be funded. we just have to see how. the presidented is interested in infrastructure. he's a new yorker. a trillion dollars of infrastructure spending. has he promised any of that you? to
>> he hasn't made any promises yet. but as i say, we're having a lot of conversation with him. the good thing about this project too is anytime you read major infrastructure projects, anywhere in the united states, this project always is top of the list. so we think it has the -- we think it's important. think it will be receiving the funding at some point. >> you sound confident that it will get going. any idea of a tim timeline? >> we'd love to see it happen sooner than later, because we'll get the final environmental impact statement on the new in the spring. after that, we're waiting. right now, we haven't been waiting on anything. so, you know, we'll continue to push. we continue to talk to the congress. are very a lot of them receptive. you know, and amtrak will do can to make sure the funding happens. >> what about public-private partnerships? that's something that's been touted by the president and maketary, as a way to
projects like this happen. is that something you would back? >> we back that, certainly. have with things like new bridges and tunnels is that it's very difficult to where the private investment gets a payback. a toll't very well put on a new tunnel or a new bridge. are there opportunities? so.ink but they're limited. the majority of the funding will have to come from the federal states.nt and the and the states, new york and very supportive and have stepped up in a big way already to commit funding. >> one final question, just to get back to the major work we're seeing over the next eight weeks. dubbed the summer of hell. would you classify them that way too? >> no. all.t although unfortunately, that's a moniker that seems to have stuck. it the summer of renewal. confident that we've done the right planning, we've got the right team, that back hopefully at the
end of the summer and two things will happen. one, people will be saying, well, that wasn't that bad. and the oh thing that's e-- other thing that's equally people will that say, amtrak told us what they were gonna do. they committed on that. know how to do the work that's required. >> thank you very much for your time. >> thank you. pleasure. >> i'm gonna hand it back to studio. the >> very interesting comments there about enticing private investment. great interview. now, up next, more on infrastructure and how to finance projects like penn station. the global head of real assets, billiones a $17 infrastructure fund. so he knows what he's talking about. from new york, this is bloomberg. ♪
>> it's time now for first word news. with congress returning from the recess, president trump theressuring republicans in senate to act on health care. the g.o.p. either is stalled and majoritys eroding for leader mitch mcconnell's bill. there are even calls from moderate republicans for a bipartisan approach. mitch mcconnell admits he might be forced to do if he cannot gather enough votes. taking a page out of his playbook, donald trump jr. has turned to twitter to defend himself about a meeting a russian lawyer. he admits to the meeting after being told the attorney had damaging information about
then-democratic presidential nominee hillary clinton. jr. wrote sarcastically, obviously i'm the first person on a campaign to ever take a meeting to hear info about an opponent. went nowhere but had to listen. end quote. a setback for theresa may and britain's conservative party. the prime minister was forced to of her own lawmakers after she used, quote, offensive language to describe the possibility of a no-deal brexit. they say her comments were unintentional and she has apologized. the suspension reduces may's members as she struggles to win of commons. house iraq's prime minister returned joining troops to hoist the iraqi flag and to declare victory against islamic city,in the northern following nine months of combat. speaking from a small base on old cityof mosul's where heavy fighting has been under way for days, they said forces had achieved victory, quote, by the blood of
our martyrs. backed iraqi forces launched a massive operation to retake mosul in october. days -- recent days, they had confined the remaining an area measuring less than a square mile. news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. >> and now let's get a recap of market moves. a day in the green for the major indices. actually, dow ending just a little bit. way.leading the amazon, alphabet, facebook, all doing well. doing soech stock not good, the camera company snap, ending below $17. important, because 17 was the company's ipo price. veryhas not been a impressive ipo for snap. >> what a painful run for them. did you miss? infrastructure, it's a hot topic
with donald trump promising $1 trillion in new spending. we talked with jim barry, global head of real assets. he manages a $17 billion fund infrastructure. they asked him about the giant renovation project that just got new york city's penn station. listen in. >> i think penn station is fascinating. a poster child for the state of american infrastructure. and what you're seeing is a patchwork activity, this summer, to keep it safe. there's beenty is underinvestment for decades now. that commuters deal with on a basis. the challenge is to deal with it requires tough political decisions. yet the cost is typically borne bya very noncash way commuters that allows the decisions. i think it's only when you get safety crisis, really doreme, the commuter events, you get political action. but it's tough.
i think that the challenge for theident trump and administration is coming forward with a program that will get the in short order. >> but when i talk to guys like yourself, they tend to say i ike energy infrastructure and like alternative energy. they don't tell me they want to atp rebuild the tracks over penn station. >> they do, but it's got to be procured or offered to the way thatector in a makes sense. just saying come and put money into penn station won't work. what theovernment and agencies like amtrak need to do is develop a project that makes clear -- makes a clear project with boundaries that one can bring contractors and withment suppliers to bear the capital to deliver it in ame form of structure like public-private pip. but that's -- public-private partnership. three to five years to mobilize any substantive ppp program. the quickest way is actually to give existing agencies like cash. new most likely through bonds.
but not people like ourselves. reality is everybody in the global infrastructure investment world is looking at the united states, the administration, because it should -- it is an emergency market. 80%. that's what we have substantially to invest in this country. but the market is open and ready, if there is an addressable investment opportunity. more generally in infrastructure. >> but is that really the essential difference? in the energy area, there are companies with cash ready to go. really commerce, right? >> the cash is there. it's the project. youn the energy sector, deregulated markets. you have already got private sector activity, the utilities, et cetera, the big oil. so in a sense, it's already private sectorhe capital. so the capital comes to work. this is not about capital. project.bout the >> so my question is, there's a perception here at least that ors very different in europe asia, that somehow they do invest in infrastructure, that it's much better than ours. correct? and if so, what are we lacking
they have? >> it's fair to say there is more investment in infrastructure in europe and particularly in asia. it's invested in many different asia.particularly in it's direct government expenditure. but if you go to somewhere like europe, and this has been going on since the 90's, at a country you have very substantial public-private partnership programs that bring projects addressed by the private sector. >> that was the global head of assets earlier today on bloomberg. up, elon musk has got the first production model tesla's future is anything but certain. we'll discuss the challenges automaker.electric this is bloomberg. ♪
>> "what'd you miss?" all this week, we'll be focusing on technology, by showcasing bloomberg's global reach. amazon prime day starts tonight eastern..m. let's turn to corey johnson, who is looking at how the company is taking to the skies. >> well, adamson prime, you -- amazon prime, you probably know boxes. amazon prime air? yeah, that's a thing. 24 planes in an amazon fleet, from particular destinations. they still, of course -- it's really interesting. planes.'t own the take a look at this. if you look at the window of 767, you can see it's operated by atlas air, one the two partnerships that amazon has crafted to help them do withs they couldn't
anyone else. here is david clark. >> there's a lot of moving parts business.plane we found a couple of great partners. comee worked with them to up with a great path forward. we think that it fits both the company needs, works great for them, and for the supplier, and provides a fantastic service to customers. not lost on, it's amazon that all the companies that they're partnering with, dhl's, the fedex's are going to see these planes out of the tarmac. they know they've got competition. not just from the other cargo from amazont itself. amazon growing to this capacity, now, 40 planes next year. how big is it gonna get? their operation seems to know no bounds. >> amazon air prime, that's the thing. now, from amazon to tesla, the first model 3's have rolled off line but stocks are
still down over 15% from just monday. the global head of research suggests that tesla may not be in the coming self-driving revolution. >> is tesla the best positioned or, you know, auto firm, the best positioned company? not.bly that does open the door to yet more ways for the amazons, the and googles, et cetera, ancapture that time and be even more invasive part of your lives. to provide the transport, that's just a living room on wheels. we'll take you to boston at a so we can turn your store store.mazon >> we are joined by dana, analystg intelligence joins us on set for a look at autonomous technology. obviously we've learned something else about the model 3, with a picture that was
tweeted by elon musk over the weekend. i'm going to quote on this. making the iphone of electric cars or the palm pilot? over to you. >> well, we shall see. thehe model 3 is really reason why the company was founded. and the first picture that we model 3 off the production line. it apparently belongs to elon. and then more vehicles will be at a big event on july 28. >> what's your take on that question? are people going to buy electric cars from g.m. and all these companies, or are they going to want the tesla? >> i think we're framing this a very different way. we've done extensive work with veryple analysts on this subject. success in this industry depends in not whether technology cars happens fast enough, it's whether five or 20 different things happen adjacent to cars and insurance and safety and 15 other industries that we're not
even familiar with at this time fast enough. issue.'s a big so the second part of it is we're all waiting for this influction point in driverless cars, where cars are going towards -- where you get into the car and you just speak destination and it takes you there. a utopian fashion, without any traffic. now, we know that's not gonna happen overnight. but along the way, there are of technology advancements that are being made that are being ignored, that are pretty substantial. so the question is, you know, why are we waiting for this influction point when there are 17 other things that are happening that are fantastic? apply to driveless cars but a myriad of other industries. asking thewe're wrong questions. we'll come back to that. >> i want to ask -- it's great first model 3that out the door. but obviously for this to be a successful launch, they really up production fast.
i think elon said thing about 20,000 a month by december. how do people feel about the odds of them successfully being hit this ramp-up schedule? >> okay. yeah. question.'s the big tesla is in the process of trying to transition from this high-volume to a auto maker. and that is no easy task. this is a company that made 80,000 cars last year but they want to make half a million by 2018. ramp is really3 make or break. i mean, a picture of one car is off. and 30 at the end of the month will be great. but then you're seeing this kind increased vehicle manufacturing. the real question is, can they cars in high volume and with high quality? model x was marred with production delays. have that on the model 3. >> they're going to be building more cars than all of the auto makers combined in
2016. i mean, that's some ambition. a fantasticin, goal. and i think tesla is far and advanced, both in electric vehicles as well as in automated vehicles. again, remember there are two parallel tracks. sometimes they overlap, sometimes not. is an industry that produces 80 million or consumes vehicles a year, give or take, right? theoes it put a debit in grand -- dent in the grand scheme of things? driveless cars substantially occupy that 80 -- a chunk of number?million >> what you will be watching is your benchmark for tesla's success. asking the wrong question about is this the iphone or the palm pilot, the question is, what's the key thing? okay, yes, they're on the right track? volume foro see sure. i want to see the cost of batteries come down. i want to see dramatic changes regulatory patterns,
improvement in five things. i want to see insurance, maps, i to see driverless planning,, urban driverless cars and automated vehicles. so all of these things have to happen. one particular thing. >> we were talking to someone this. i used spacex. saying he's sending up rockets in space because i think he wants satellite lights up there. he wants to be able to control the ek system. not just about the autonomous vehicle. far about actually the bigger ecosystem. >> that ecosystem is going to timea tremendous amount of to develop, number one. number two, it may not happen will.y we think it >> does tesla have the edge there? >> it certainly is far ahead of else, in that specific issue of driverless vehicles. that is clear. but does it have all the pieces of the puzzle? so.n't think
>> this whole new car space have been characterized by lots of google orps, alphabet, apple. everyone is trying to have a hand in it. in silicon valley are you watching the closest, ofides tesla, in terms defining the future of automobiles? >> well, there's over 30 companies in silicon valley that have permits from the state of test autonomous vehicles. a lot of them have been fairly stealthy and quiet. think the toyota research group, what they are doing is super interesting. a risk by going out first with auto pilot and they got a lot of heat for that. milesey have a lot of under their belt in terms of understanding how drivers drive and how their cars are performing. i think what we're about to see is a transition there selling cars in a showroom to mobility as a service. and that really is going to kind of change the equation for people. buy a car or subscribe to one? am i going to operate my own have this car work for
me when i'm on vacation? the whole business model of the way americans and consumers tound the world have related vehicles is in the midst of a big transformation. competitive right now interesting. >> thank you both very much. nextoming up, what's the monetary policy move from the e.c.b.? the governor of the central bank of france. ♪
francois villeroy de galhau spoke to bloomberg about when tweakc.b. is likely to its stimulus measures. >> our monetary policy is efficient. just mentioned, we had a negative inflation, a bit more one year ago. 0.2%.2016, minus we expect this year to have 1.5%. due to energy prices. but also to the effect that the progress of implementation of our commodity monetary policy gives results. but we are not yet there. target is midterm inflation, 2%,-sustained, of around close to 2%. as -- we will implement this monetary policy. but what we have to do and what started to do is to adapt the
of this monetary policy to the progress, towards andinflation target, towards economic recovery in europe. remember, what we did last march, when we reduced the monthly purchases from 80 to 60 announced onee month ago that clearly we wouldn't reduce further interest rates in the future. and this will be our decision fall. we will go on, adapting the intensity of this monetary policy. >> do you think the discussion should move quicker, though? think the markets are moreting it to move quickly? >> i think we have been aboutely clear visibilities, predictability of our monetary strategy. remember, as far as last december, we announced our
monetary policy for the year to come. so until december 17. we will see what happens after that. we will clarify next fall. but no impatience, please. i don't say it especially for the financial markets. because we are independent. independent meaning being independent from political pressures clearly. short-term, on such or such market impatience. >> are you also waiting for the political risk? you mentioned in your letter that protection is policy our threat, for example, our threat to global growth. theyou waiting to see how political risks evolve for the rest of this year? an important characteristic of the european situation, that political risks diminished with it, so you presume. if you remember what was said ago, after brexit, 2017 was supposed to be a very
for the eurozone with much turmoil expected. weak recovery, et cetera. we have seen the contrary. is solid, because it's domestic driven. risks butpolitical they are more at the global level, outside the eurozone. so brexit negotiation is a real challenge. there are uncertainties about the new american policies. what we have to do, and this is stake of theant hamburg, just happening now, is to go on with the policy, with international goals. these are the best solutions for global growth and also the best inequalities.st >> that was bank of france governor francois villeroy de galhau earlier on bloomberg. >> now it's time for the
business flash. biggestt some of the business stories in the news right now. the u.s. consumer financial has announcedeau rules making it easier for customers to sue banks. curbing financial funds tod in arbitration clauses block group lawsuits. consumer advocates say the shift will deter bad corporate behavior. battle isire's electricity supplier encore. returnen buffet does not the -- it's the largest credit encore's parent. they want the texas company to proposals.native and that's your business flash update. >> coming up, what you need to tomorrow's trading day. this is bloomberg. ♪
$17. ouch. amazon prime day begins tonight at 9:00 p.m. eastern. tomorrow, i'll be looking at some data and small optimism. wholesale inventories at 10 a.m. eastern. >> and earnings at 7:45 a.m. eastern. for earningsady season. that's all for "what'd you miss?" bloomberg technology is up next. a wonderful evening! this is bloomberg. ♪
he said he was told the attorney had damaging information about hillary clinton and wrote obviously i am the first person on the campaign to take a meeting to hear info about an opponent. went nowhere but had to listen. a spokesperson said the only inappropriate aspect of the meeting is details were leaked to the media. the senate intelligence committee will meet with trump campaign officials as part of its investigation into russian meddling in the election. nbc is reporting interviews begin this week. the committee has closed meetings tomorrow and thursday. president trump is pressuring senate republicans to act on health care as support erodes for mitch mcconnell's revised bill. a moderate republican has caused for a bipartisan approach which mcconnell admitted last week he be