tv Whatd You Miss Bloomberg July 25, 2017 3:30pm-5:00pm EDT
with the support of iran, the organization is fueling humanitarian catastrophe in syria. zbolah likes to portray itself as a defender of lebanese interests, but it's very clear that it's true interests are those of itself and its sponsor, iran. i have emphasized that syria's neighbors must take responsibility for helping refugees until they can return home and rebuild their country. the lebanese people have led the way, accepting more syrian refugees per capita than any other nation. it's not even close. i want to thank the prime minister and lebanese people for giving shelter to those victimized by isis, the assad regime, and their supporters and sponsors, and pledge our continued support to lebanon.
since the start of the syrian crisis, the united states has helped lebanon support syrian refugees with clean water, food, shelter, and health care. our approach, supporting the humanitarian needs of displaced syrian citizens, as close to their home country as possible, is the best way to help most people. america is proud to stand with courage toave the terrorism and take responsibility for affairs in their own region. the reliance and resilience of the lebanese people terrorism ae responsibility for in the face of war and terror is extraordinary. mr. prime minister, i'm grateful that you are here today. it's a big day for our country
because of the vote you just heard about. we stood and watched the results out,levision before coming and you found it very interesting, i hope. >> yes, i did. >> and very important. i look forward to working with you to strengthen our partnership and the enduring partnership between the american and lebanese people. thank you very much. mr. prime minister? >> thank you. good afternoon. i have the honor and pleasure to hold a very good meeting with president trump. i appreciate his leadership and ership ind states' lead the world today. we discussed the situation in our region and the efforts we in lebanon are making to safeguard our political and economic stability while combating terrorism. i thanked president trump for his support to our army and security agencies, as well as
his support to maintaining peace and stability along our southern border. committed tot is the united nations security 17801.tion we discussed the pressures lebanon is facing as a result of 1.5 million syrians displaced in our country. myutlined to president trump government's vision for dealing with this crisis with the support of the international community. we also discussed the economic .rospects in lebanon i think president trump and the united states for their support
to the lebanese people, striving to keep their country a model love -- model of democratic governance in our region. thank you. >> thank you very much. >>thank you. >> thank you very much. margaret talev, please. >> thank you. mr. prime minister, i will have a question for you also in just a second, if you will bear with me. you spoke earlier today of "the wall street journal." we have seen those comments, but i think everyone is hoping you can talk more about this. you have called your attorney general "beleaguered." you criticize his decision to recuse himself on russia matters, and your catchphrase or motto before the white house was "you're fired." i wonder if you would talk to us about whether you've lost confidence in jeff sessions,
whether you want him to resign on his own, whether you are prepared to fire him if he doesn't, and why you are letting him twist in the wind rather than making the call for him. >> i don't think i am doing that, but i am disappointed in the attorney general. he should not have recused himself almost immediately after he took office, and if he was going to recuse himself, he should have told me prior to taking office, and i quite simply would have picked someone else. i think that is a bad thing not for the president but for the presidency. i think it is unfair to the presidency, and that is the way i feel. >> thank you. mr. prime minister, could you tell us what you think about the qatar?ed blockade of this is something that has been of great concern to the u.s. do you think qatar is doing enough on terror, and if so,
would you like to see president trump increase pressure on the saudi coalition to ease the blockade? mr. president, if you would give us any of your thinking on going forward with attorney general sessions and maybe your timeline for making a decision, that would be great. >> i think there is an effort by the kuwaitis. they are leading this effort. i think they made some progress. we believe that dialogue is the best way in improving this relationship between saudi arabia and qatar. i believe the united states could help in solving this issue in the gulf. denise? >> i have one question for the president and also the prime minister. congress introduced additional
sections -- sanctions against hezbollah last week. what is your stance on these sanctions? >> i will be making my position very clear over the next 24 hours. we are going to see exactly what is taking place. i have meetings with some of my very expert military representatives and others. i will be making that decision very carefully. >> what about the role in syria? >> hezbollah. >> i will be talking about that tomorrow. [speakin arabic] arabic]king
about, there is still a long ways to go. at what point do you feel republicans, if they can't get itething done, say, we gave a go, let's move on to tax reform? >> i want the attorney general to be much tougher on the leaks from intelligence agencies, which are leaking like rarely have they ever leaked before at a very important level. these are intelligence agencies. we cannot have that happen. you know many of my views in addition to that, but that is one of the more he -- more important things we have to get on. i'm disappointed with the attorney general, but we will see what happens. time will tell. on health care, i'm extremely happy that we got this vote. they say, if you look historically, this is the tough vote to get. now we are going to sit together and try to come up with something that is spectacular.
we have a lot of great options, and the republican senators really went out there. it's not easy when you have 52 senators and a block of 48 voting against you, no matter what it is. it's very hard to get the kind of numbers we got. verended up with 51 to whate -- 51-50. we had two republicans who went against us, which is very sad, i think, for them, but i'm very happy with the result. i believe over the next week or two we will come up with a plan that is going to be really, really wonderful for the american people. obamacare is a disaster. is failing on every front. it is too expensive. it gives horrible coverage. lie.s gone by a 28 times, it was a lie. "you can keep your doctor."
"you can keep your plan." all lies. the people were sick of it, and we are going to come up with great health care that satisfies the needs of the people we serve, which is the people of the united states. health care is always difficult because you have to weave and narrow path, like a quarter of an inch wide, right down the middle, and if you go too far right, you lose three people on the left. if you go too far left, you lose five people on the right. it is a very, very complex and difficult task, but it is something that i actually know quite a bit about. i want to thank some of the republican senators who were fantastic and getting us here, particularly john mccain for making the trip. i think you are going to have great health care. this is the beginning of the end for the disaster known as obamacare. --mr. president
statescan the united help lebanon cope with the massive number of syrian refugees, and is there a way you can help with the refugees' return to their home country? >> we are helping, and one of the things we have made tremendous strides at is getting rid of isis. than the previous administration made in eight years. then we have to see what we have to see. ,sis in syria, isis in iraq isis in other locations, we have
made tremendous strides. our military is an incredible fighting force. i let our commanders on the ground to what they had to do. before, they used to call this beautiful house and speak to people who didn't know what was happening. ,here they were, what locations practically, probably never heard of the countries they were talking about or the towns -- i love the generals do what they had to do, and we have made tremendous plans. we were discussing it. we have made tremendous gains with respect to isis in syria, iraq, and other places. >> what about bashar al-assad? >> assad. i'm not a fan of assad. he will tell you that. 58 -- or you of
could say 59 out of 59 when we launched the tomahawk missiles. i'm not a fan of assad. i certainly think that what he has done to that country and to humanity is horrible. i have been saying that for a long time. i not somebody that will stand by who will get away with what he tried to do. he did it number of times. when president obama drew the red line in the sand, he should have crossed that redline, because some horrible acts against humanity took place, including gas and the killing through gases. that was a bad day for this country. i would go a step further. had president obama gone across that line and done what he should have done, i don't believe you would have russia, and i don't believe you would
mr. prime minister, thank you. >> that was president donald trump speaking with the lebanese .rime minister as always with president trump, the questions don't tend to focus on the topic at hand, but everything else that is going on in washington. margaret talev, her second day on a job, hitting him with questions about jeff sessions, what he is trying to achieve with his attorney general, donald trump refusing to suggest that he was going to fire him or give further clarity. let's head to bloomberg's chief washington correspondent kevin cirilli and mike mckee who is in washington. jeff sessions, what happens here? mike: that is a very good question, julia. we don't really know what donald trump is trying to accomplish. i've covered three presidents
over 10 years at the white house, and i've never seen anything like this with the president says, i have no confidence in you, but i'm not going to tell you what will happen next. the implication seems to be that he would like jeff sessions will resign. we don't know if trump's matta jeff sessions because he recused himself, or if you would like sessions on so he could fire robert mueller. those are interesting questions being asked all over washington, but until the president takes action were jeff sessions reacts, we don't know. one word we have heard from the justice department is he is not happy, but he has no plans to quit at the moment. scarlet: let me follow up with that. we had gotten headlines from "the wall street journal," an interview the present conducted with the journal, in which he made other comments on jeff sessions, saying what jeff sessions did was unfair to the
presidency, and he was disappointed in jeff sessions, and further questions in this news conference, folks asked him what prompted this anger at jeff sessions, and the answer seemed to be about the leaks and national intelligence, and that was the fault of the attorney general. what are you hearing in terms of plan b's in the white house or of how jeffn terms sessions would resign you go would rod rosenstein be automatically elevated? how would it work? mike: that could be how it would work. this idea of prosecuting leakers , that is a new one. open till this point, the president has been talking about al, and thatcus seemed to be the reason why he was angry. if you wanted to replace jeff sessions, he could appoint a new attorney general. rod rosenstein would become the
acting attorney general until someone else takes over. it might be difficult to get that person confirmed anytime soon. somebodyalso install on a recess basis with a recess appointment if the senate is out for at least 10 days, and there are stories the senate isn't going to dofor at least 10 dayse are stories the senate isn't going to do that, to allow him to appoint a recess attorney general, but he could appoint congress isn this over. if he wants to fire robert mueller, it gets more complicated. if that were the case, maybe rosenstein resigns. the number three official might resign, and then he doesn't have anybody. then you get deep into the weeds. washington is scratching its head over what happens next. julia: he does love that phrase, "you're fired." that's a shame. kevin, let's bring you win on
health care. what happens now in terms of procedure, and what are you hearing from the white house? essentially, there are three paths forward in terms of what the senate is going to debate on. the first is the full repeal. the second is the plan put forth by senate majority leader mitch mcconnell. we heard from john mccain speaking on the senate floor saying it was a "shell of a bill." is this skinnyn repeal version. that's an effort to bridge the gap, get a lot of folks on board. if that advances, it would then go to the house of representatives. when it goes to the house, the thinking amongst gop leadership and the white house is that there would be so much clinical pressure to repeal and have some sort of wind that they would be able to win over ultraconservatives in the house freedom caucus. however, i'm hearing from a senior source on the house freedom caucus that they are not
going to be able to bring it to a vote, in which case it goes to conference. should it go to conference, everyone can take a step back. that would prevent any sort of major policy overhaul from happening until a couple of months, potentially into next year. i just heard from kellyanne conway who was instrumental in working with the vice president of the united states in lobbying lawmakers. she says her policy team was patient, respectful, tenacious, and successful. she took a shot at democrats saying, this health care is a better deal. >> i want to jump in with breaking news, president trump telling "the wall street journal" that yellen remains a contender for a second term at the federal reserve, also saying that gary cohn, the current economic advisor, also a contender to lead the fed. there's been a lot of debate and discussion about whether janet yellen would stay on. mike mckee, obviously, this is
pretty big. in washington, how do they view yellen's odds? how do they view the perception of the yellen fed at the white house? mike: almost no one you talk to in washington thinks yellen has much of a chance. gary cohn has been treated as the favorite the last couple months since news stories broke he was under consideration. he is leading the search for a new fed chair. janet yellen was seen as somebody else's appointee, a democrat, somebody who came from the obama administration, and on that basis, whether or not you like her policies, she should be replaced. the president wants somebody who will keep interest rates as low as possible. he might want janet yellen, but on a political basis, gary cohn has emerged as a favorite. that's a little odd because cohn is a democrat. change inreally get a parties, which is why a lot of
people thought maybe when hubbard or kevin were sure somebody who's register republican -- or somebody who is a registered republican would be a favorite. scarlet: kevin, let's talk about john mccain. the senator from arizona made the trip back from arizona to washington. he appeared on the floor of the senate. he cast his vote on the motion to proceed so the senate could to be -- could begin debate on health care, and he said he would not vote on the health care bill in its current form. he mentioned for himself that his next step would be to begin debate on a policy defense bill. he didn't address much time to health care. how pivotal is he to this process, to the senate republicans' effort to repealing and replacing obamacare? kevin: to be candid with you, it has nothing to do with politics or policy. just a personal of senator john mccain who made public several
days ago his diagnosis with brain cancer, he is seen here as a stalwart in the house of courage, a profile in a former pow, someone who has held office since the 1980's. the key take away courage, a former from observing that speech we saw from the senator, the senior senator from arizona, was when he said, the senate is an equal to the president of the united states. yes, the white house lights the way. senator mccain voted on the motion to proceed, but he made in no uncertain terms clear where he feels his maverick type inbrand of politics exists this current political juncture. he has been a critic of this white house, particularly with regards to russia. he is someone who quite frankly is someone seen as a senior member of the upper chamber, and
that will only continue. afterct that he is here that diagnosis shows the broad support and praise he got from those who oppose him on a political or ideological standpoint. julia: i want to bring in shannon pettypiece, our white house correspondent. i want to circle back to what we were talking about with jeff sessions and the questions the president was asked in that press conference. give us a sense of how that would work. why do we think president trump has ramped up the pressure on attorney general jeff sessions in the last 24 hours? my second question is, procedurally, what happens if the attorney general steps down or president trump fires him? can they appoint someone new over the august recess? + i think we are now basically in a stalemate where sessions is not going anywhere. he could have, after seeing the president pressure, the president coming out on twitter,
attacking him, criticizing him, saying, i am disappointed in him. he could have stepped down. if he was going to do that, he would have done it weeks ago when it became clear trump was disappointed with him. members we saw on the hill really come to rally two nse, even defe conservatives on talk radio, rush limbaugh, hugh hewitt coming to his defense. nse, even conservatives on talki think tht understands that there is a line he would cross in firing sessions. he's tested the water. the conservatives have rallied around and backed sessions. now we are in a stalemate where you have an attorney general who does not appear to have the full confidence of the president, based on what the president's statements are, but who is in there and will go about his business and carry through.
trump has given no indications so far he plans to fire him. scarlet: i'm looking at headlines from mitch mcconnell, saying jeff sessions made the right decision to recuse himself on russia. it is interesting here. obviously, the president does not appreciate what jeff sessions has done in terms of recusing himself on russia. the president has said that it's unfair to the president. julia: not just the president, but the presidency. >> i want to go back to something you said about the multiple paths forward for health care. you talked about skinny repeal. can you explain what that is specifically and how that would work? do is seek it would to alleviate some of the concerns of moderates in the sense of cuts to entitlement programs for underprivileged americans and not impact some of the more moderate voters, do isk to alleviate some of the people like senator susan collins who is one of the few senators, one
of two republican senators to this, as well as senator lisa murkowski, but also senators like shelley moore cap it out, a republican from west virginia, and senator rob portman from ohio. they are nervous about cuts to entitlement programs. it doesn't go as far as a clean repeal would. that is where all of this is headed toward, and that is why, in speaking with a senior aide to the house freedom caucus, they feel that the current version of that skinny repeal bill, to use this aids words, is "dead on arrival." they don't really see a path forward in that regard or a viable alternative should this go to conference, from their perspective, if it goes the conference, that drag this out longer and closer to the midterm elections. their thinking is, why would you have a major health care vote in the 2018 calendar year so close to the midterm elections?
on the flip side, if you talk to the white house, they say, game on. we were able to get this political victory today. who is to say we can't apply that same pressure in the house of representatives? it is going to get very interesting. scarlet: it's just the beginning. shannon pettypiece, mitch mcconnell said he aims to finish health care with a vote by the end of the week. does that sound reasonable? does it seem feasible according to the people you speak with? shannon: it depends on what they are going to vote on. right now, based on the reporting kevin has done and our colleagues have done, there is no bill that exists that has enough people to approve it. they are going to go through the amendment process. there will be some arm-twisting. right now, nothing exists where you can get 50 plus the vice presidential tiebreaker vote to move forward on. the president in the rose garden said in the next couple weeks --
i'm not sure he was referring to. maybe he thinks the senate will be debating >> it. or they go through all of this and you get a bunch of people on record voting no on various hills, and all the other amendments coming up, people on the record voting no again. know the president will be doing a victory lap on this, but it may be too soon to celebrate. and thinking of the victory celebration after the health care bill passed of the house. kevin it is just after 4:00 p.m., u.s.
stocks broadly higher, record and ther the dow, s&p, nasdaq marginally higher by a gain of one point. a lot of corporate earnings playing into those record highs. as theies have declined fed begins its policy meeting. it will come out with its decision tomorrow at 2:00 p.m., no change expected. julia: "what'd you miss?" a bloomberg survey of fund managers and strategists suggests a market correction could combine late 2018 and the damage could be massive. joining us now is dani burger who cowrote a article on this subject. talk to me about this survey.
bull market? the not a lot of agreement. there was a lot of pessimism, which means perhaps now is time to be optimistic. the bull market stopping for stocks and bonds in late 2018, and overwhelmingly, central banks and fed where the number one concern, moving too soon, the tightening will be messy because they have been loosening somewhat coordinated, then we look at europe, the u.k., this bullish-bearish back-and-forth that has made moving forward with central policy challenging. the you write about travails of the cross asset
investor when everything moves in the same direction once. they see all the bull market sending at the same time. in a downturn, no place to hide. >> exactly. and they see a recession coming next year. one thing interesting to point managers andyed strategists across the globe, the difference between the u.s., europe, and asia, the u.s. is a reverse home bias. the concern is broadly bonds. in europe, it is much more equities. there is a sense of we should be moving out of u.s. equities and into europe. we are just at the beginning stages of the european recovery. what is most vulnerable in
the downturn. perhaps the rally and credit inequities, end, but across asset classes, high yield, credit, technology stocks, some of the things where we have seen greatest positioning? homeaying on that reverse highest, u.s. equities did seem vulnerability because there has been low volatility and managers are levering up to reach their risk target. the return of the principle that there is no alternative, and valuations are stretched, leaving us vulnerable . should there be a selloff, the correction could be a drastic one. is btv 7132 that looks at the three previous air markets. in the late 1980's, the s&p 500
lost it third of its value. m bubble, abouto 50% in 2009. the not looking for 2007, 2000 9--meltdown? have seenen we smaller corrections and downturns, that still hurt a lot of people. they don't see this long-lasting , but it stilling won't look pretty in their view. scarlet: thank you so much. the latest onr
this server result on bloomberg.com as well. amgen in focus, second-quarter revenue, $5.81 5.67on, the estimate was billion dollars, so a touch better than expected on revenue. second-quarter adjusted $3.27, so a beatdollar on the adjusted eps line. drug winning fda panel backing, also fda approving potential therapies as well. it does seem to be under pressure, down 1% from but was down 4% post-market. breaking earnings from
texas instruments come up 1% in after-hours trading, the company announcing q2 earnings of $1.03, well ahead of the range. the estimate was $.95. .69 billionhree dollars, estimate of $3.56 billion, so a solid quarter. you see the market reaction after hours. this is another tech stock below the radar, but it has done well in all this talk about the fangs. a lot of these chip companies outside the big four have done well, including texas instruments. scarlet: at&t reporting results. still seene was at&t the time warner deal closing by the end of the year. for the second quarter adjusted earnings per share beating the highest estimate, $.79, analysts
looking for $.74. line,e below estimates or 30.9 8 billion looking for 39.8 4 billion. at&t maintaining full-year guidance, so perhaps that maintenance or reiteration along with the statement that it sees the time warner deal closing by year end is helping to goes the stock by 2.4% in extended trading. let's bring in alex sherman to talk about at&t and its merger with time warner. be waiting for some kind of indication from regulators that they want to examine this further. what would have we heard so far and how is at&t proceeding with its plan? thatoomberg broke a story early discussions have begun between at&t and time warner and u.s. regulators.
we don't know the details of those discussions yet. we know what we are looking for, which is due to regulators have any concerns with any of the assets as part of the deal, particularly cnn because of the political implications and the rhetoric from the trump administration about cnn? possibly thereng that would indicate time warner would have to have some sort of behavioral concerns with cnn? will they have a change of leadership there? it could divest cnn come although that seems unlikely from some sort of legal but other than cnn, we expect similar conditions if there are any conditions as we saw when comcast bought nbc in 2009. these are conditions that basically say we agree to some xrm of net neutrality for
amount of years, take content from time warner and sell it exclusively? administration sec demand these behavioral concerns, or will they say we don't see any legal grounds to deny this deal, therefore it goes to buy the end of the year? president trump during the campaign said a tie up between at&t and time warner would consolidate and concentrate media power. there are democratic lawmakers concerned that a deal between the two companies would lead to higher prices and fewer choices for consumers. who is supporting this deal? >> it is the silent majority as it always is. you hear people who are against the gop and you don't hear people who are in support of the deal as much.
the general principles are in support of it. there is no obvious legal grounds to me that would a lot of trouble ahead comcastbecause we saw and nbc happen, so there is a direct precedent for this vertical integration. this is not like comcast and time warner cable, which did not go through. this is a company in the broadband distribution industry buying a content company. you don't necessarily have a company that may infringe on laws. julia: great to get your views in there. some results from chipotle mexican grill. , $2.32, thernings consensus $2.18, a slight miss
on revenue. 1.17 billion dollars versus $1.19 billion expected. what we got in terms of comparative sales, higher by 8%. the estimate was 9%. int we are seeing after-hours is the stock bouncing after a miss on the revenue line and can heard of sales. stock at the lowest level since 2013. this after the food poisoning scare, so bouncing off the lows here is the phrase we need to use in terms of these numbers. scarlet: we will talk more about holy shortly. -- about chipotle shortly. 1.5 3,000,000,004 wynn $1.53 billion for
>> after a procedural vote down canhe wire, the u.s. senate begin debating a repeal of the affordable care law. casts thedent pence deciding vote. mitch mcconnell says debates over and amendments will continue over the next few days. the plan is to wrap up health care by the end of the week. news conference with
the prime minister of lebanon, president trump thanked republican senators who voted to move ford. -- move forward. >> i am very happy with the results. over the next week or two, we will come up with a plan that will be really, really wonderful for the american people. >> the president added he wants "to congratulate the american people because better health care is on the way. " assistant press secretary michael short has resigned. he could be the first casualty of new communications director push toscaramucci's clean house as he moves to stop information leaks. thepresident has criticized leaks and is urging of 30's to prosecute those found responsible. the united nations security council is meeting in the wake of recent violence between israelis and palestinians.
temple mount tensions running high, a landmark considered the holiest site in judaism. killed two is really officers near one of the compound gates on july 14. the u.s. ambassador to the u.n. nikki haley accuse the security council of "making the middle east more complicated than it actually is." over israel and refuses to acknowledge one of the chief sources of conflict and killing in the middle east, hezbollah.banese is a terrorist organization. it is dedicated to the destruction of israel. muslims believe the hilltop compound marks the spot from which the prophet mohammed was sent to heaven.
it is the third holiest site of islam and houses a mosque. the saudi-led arab alliance qatar said efforts are not enough. it says the blockage stands until demands are met in full and added nine organizations to a list of terror groups and claims qatar supports. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. i am mark crumpton. let's talk about chipotle. we got earnings. they beat on the bottom line, $2.32 versus the estimate of $2.18. billion versus17 $1.19 billion expected.
concerning, comparative sales of 8.1 percent versus the estimate of 9.1%. mixed results. what do you make of the comparative sales decline? >> what we saw in the first quarter and december, we look at it on a two-year basis to smooth out for differences in the calendar and big drops from a year ago. they slowed a little bit from the first quarter, which was surprising. on top of that, you have the virus outbreak, now adding another layer of uncertainty. joe: does this suggest there is something deeper going on that does not have to do with the food health scare? the issue last week is not relevant to the numbers this quarter. it seemed like they were getting past this stuff, so is there
something about foley not what not what itchipotle once was? big factor. they do a good job of relating ways,tomers in many sustainable, doing good for the community, stuff like that, so not a question of if they come back, but win. time heals all wounds. in this quarter, the big thing would be discounting. they are cutting back on discounting from last year. that is not an easy thing to do, so getting that right might be difficult. do think the ceo is under pressure in any way? yous under his watch that had a health scare, and now this second outbreak? something unnecessarily a common, but reminds people what happened previously. >> there is no doubt there is
pressure on him. scarlet: would he need to step down? >> i don't think that is necessary. part of it is his own fault. he came out and said we will have the safest restaurants to eat at, but frankly that is impossible. a competitor like mcdonald's, all the foods except the solids go through a 600 degree oven. he set expectations unrealistically. julia: is there a bigger conspiracy here? the story on the bloomberg terminal which i want you to read, is there something bigger in this scandal? .> i don't watch billions i'm not sure about a conspiracy theory. , i wasst thing i noticed poison.com, after the story got
out, the amount of instances exploded, so i was like, short-sellers are posting erroneous reports to push down the stock, which is a possibility. i cannot speak to conspiracy or what is going on on that website, but it was a little suspicious because there were a lot more instances then you might typically see. scarlet: we will see how it plays out. thank you so much. from new york, global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. this is bloomberg. ♪
covers apple from san francisco. you talk to tim cook yourself and ask about the prospects of manufacturing in the u.s.. >> apple does not own any factories. in china, these are made by contract manufacturers. we know already that foxconn and is planning to bring some lcdfacturing to the u.s., panels in the midwest, and these will be shipped to other factories, which will also likely be in the u.s. to turn them into computer screens and television screens. there something about the economics about those displays that makes a more economical to build in the u.s.? >> yes. they can basically be made by an automated process. you can't do that with iphones. you need refined motor abilities
to put that stuff together. displaying manufacturing here, it means maybe they have a stay of execution in china. quote,a fascinating , unlessrump saying, tim you start building your funds in this country, i will consider my plan a success. donald trump layers on the pressure. we don't have confirmation from apple, but it does make sense. when do we expect him called to confirm this? >> i don't think tim cook will confirm it. tomorrow, possibly foxconn could announce where it will build its plant. apple does not like talking about its supply chain process. it once the focus to be on the
product. scarlet: what has tim cook's position been on the trump administration? does he want to engage with the white house or has he taken a more confrontational approach? theim cook was part of panel that cap it in to talk about issues, but said he does not want to be part of the advising committee that meets every quarter. gate with theen administration and has been verbal about some issues like immigration, but the bigger issue is clearly off shore. they need an open dialogue because they have hundreds of billions of dollars offshore. that is the number one priority for him. alex webb, thank you for your thoughts. julia: up next, corporate the market tong record levels. why our next guest says she
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the senate today voted to move ahead on health care legislation aimed at dismantling the affordable care law. the vote was 51-50 and vice president pence as head of the senate cast the deciding vote. the plan is to wrap up health care by the end of this week. meanwhile, john mccain made the trip to capitol hill and voted to move ahead on repealing obama care. billwill not vote for this as it is today.
it is a shell of a bill right now. we all know that. i have changes that will have to be included to earn my support before final passage of any bill. mccain'swas senator first trip to capitol hill since his diagnosis. britain's brexit minister says progress has been made on talks concerning citizens rights once the country leaves the european union. government said his wants a quick deal on the rights of one million cases of citizens living in the eu and 3 million eu citizens living in britain. former pro 202 football players found evidence of brain disease in nearly all of them. they range from athletes in the nfl and college and high school. the report published in the journal of american medical association is the largest yet on cte, a brain disease linked with repeated head blows.
the finding does not confirm the condition is common in all football players, but does reflect high recurrence in a boston brain bank that does study cte. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. i am mark crumpton. let's get a recap of today's action, record highs for u.s. equities come all indices positive, although the nasdaq little changed. plenty of earnings to go through right now. where should we start? joe: u.s. steel surging in after-hours trading. this was a stock that surged after the election thanks to infrastructure optimism, then fell back. up 9%, q2 eps of one dollars seven cents, adjusted eps, net sales of $3.41 billion, estimates of two point nine $7
billion, one dollar 70 cents versus previous estimates of $1.50. a lot to like there. stockse of the wild traders have been into this year, enthusiasm over gaming, cryptocurrencies. that is doing well, beating cents a, earning two share. estimates had been basically 0, 1 .2 2 billion dollars versus 1.16 been dollars revenue, annual revenue increasing in the mid to high teens going forward, stock up over 7%. , $.79 versus estimates of $.74. $39.8 billion versus 39.8 $4 billion, so pretty much in line. they maintain their full-year guidance, which is good news.
a lot of focus on the stock to do with what we see in terms of the time warner deal. still seerate they that timeline for the time warner deal closing by year end. nitty-gritty,e subscriber gains are also lifting numbers. it is paring some tv subscriptions come something you would expect your chipotle in focus, competitive sales eight .1% on the quarter versus the estimate of 9.5%. eps better than expected, slight softening on the revenue line, but what the earnings report. it will be about what they do to tackle the latest virus outbreak. scarlet: it came after the quarter had closed. i'm looking at express scripts resorts, both down.
beat estimates, eps missed, and partly because the new macau resort came up short. up withscripts coming its outlook in which it boosted its full-year adjusted earnings per share view. the midpoint topped analysts estimates, but the numbers for second-quarter revenue miss consistence, although profit did beat. both of those falling in extended trading. took on a risk tone as positive earnings and economic data bolstered confidence in the global economy as the fed sees robust growth against people inflation. with us now is the principal investment strategist at principal investors. great to have you on the show. give us a sense of how you see the world in terms of those by -- those evaluations
and concerns about where risk appetite is an the relative a between the united states and europe. >> we have a global synchronized recovery in place. it is a great environment for equities because you have solid, stable growth. we have low information pressures, which is really good for markets. on a relative value basis, i prefer equity versus credit. i preferegions, europe on a relative i you basis. joe: you mentioned lower inflation and how it contributes to a goldilocks scenario, not much urgency on the fed. we have the fed decision tomorrow, but what about this idea that central bankers are getting more concerned about asset prices specifically and they are taking on a do fact no third mandate to rein in this incredible bull market we have seen? you can't ignore financial
conditions. mario draghi was asked to specifically about asset markets. he said he did not like to talk about financial markets and went on to talk about financial conditions. when we are moving towards , balance sheet reduction come at that point, you have to take into account how financial markets and asset markets are reacting. they don't want to get this wrong and have another taper tantrum. bring upi want to something we talked about earlier, a bloomberg survey that found analysts and investors's believing there could be a bear market for equities and credit in 2018 because that will be around the time that the central 's tightening policy. this illustrates the previous three bear markets. they have gotten more significant as time has gone on.
have the next bear market, does it follow we will see a steeper decline? 2008-2009, 57%, 2000-2000 1, 40 1997 was a 20% drop. >> let's say the fed gets the timing right. aere does not need to be major correction. at the fed waits too long and let's inflation pressures build will bring down a significant recession, so important the fed gets it right. scarlet: what is the indication you have that the fed is getting it right? >> i have confidence that the reaction the fed has and they appreciate how important their communications are. the lack of inflation pressures means they may take longer, so i expect the next rate hike by the end of this year, maybe 2018,
but it will come because they are aware that if you let inflation pressures build up too much, that is when you have to slam on the brakes. julia: you say you prefer european equities, or they will outperform the u.s., but then you prefer u.s. credit over european credit, which i find fascinating. what is leading or lagging here, and why the mixed messages? >> it is down to valuations. bettern equities are valued than u.s. equities. we have had tremendous performance from u.s. equities this year. european credit has had good performance for the past couple of months, which means it does not look as attractive from a valuation perspective. julia: what is going on here? are they realizing valuation opportunities or did relies there were opportunities and equity investors are slower to catch up on the pickup in growth and the solidifying in terms of
the economic output in europe. what has created that fight you wish and cap that makes european equities cheap and credit expensive? >> they are getting to that point. it is not that much further behind. that search for yield in a low rate environment helps credit markets push through, and the ecb corporate qe program he's getting further and further into credit. joe: in general one of the themes we talk about is the challenge of diversification win equities and bonds seem to be moving together. how do you think about that problem? even though you are optimistic and talk about tilting towards think aboutdo you portfolio construction and having something in place that would do well if we were to get a downturn? >> diversification is very important at this stage. if i have a global portfolio, i do like the u.s., but it is not the best time to be fully in the
u.s.. that is why i want to look at europe and japan. there is a lot to go in japan as well. scarlet: as we head into the fed decision tomorrow, is there anything that yellen and company could say that would dissuade you from your view or change your approach? must theis so dismissal about inflation pressures, and maybe that brings it ford, but what i expect is to see some talk about balance sheet normalization coming earlier. instead of later this year, but maybe very soon. i would expect it the balance to come inction september even without inflation numbers. scarlet: we will look for a timeline there tomorrow at 2:00 p.m. thank you so much. coming up, the senate gop agrees to debate health care with no votes to spare. mike pence had to break the tie.
scarlet: "what'd you miss?" senate republicans agreed to begin floor debate on health care a legislation. made the, john mccain trip back to capitol hill. he voted to move ahead on beginning the debate. >> i will not vote for this bill is today. it is a shell of a bill. we all know that. i have changes urged by my state's governor that while to be included to earn my support
for final passage of any bill. scarlet: mitch mcconnell spoke after the vote, saying they will continue to keep working on health care. >> the senate just voted to proceed to the obama care repeal and replacement issue on reconciliation for the rest of the week offering amendments. offered one, and it will be others. it is an open amendment process. we are not out here to spike the football. scarlet: let's get the latest from megan murphy. they have done it. they fulfilled their campaign promise of repealing obamacare. no, they haven't. all they have done is agreed to debate health care. >> we are looking at three options moving ford, all of which face a torturous path. one is a full repeal of the aca. scarlet: that would fulfill the campaign promise. the lastone of
holdouts rand paul voted to proceed because they would get to this repeal. it is unlikely to get 51 votes. the second is repeal and replace from the house, full of problems in terms of medicaid cuts, expense, cbo score, popularity, and the technical thing about parts of that. that is another problem. there is the third path, the skinny repeal, which would unwind some unpopular parts of obamacare, the individual , forcing employers to make sure people have health care, and the medical device tax. that's been talked about the bit. joe: it seems like the skinny repeal, i don't think i heard anyone talk about it before today. it feels like there is a lot of momentum.
i did not see medical device stocks makers move that much today. a key linchpin of the whole thing. there was a supreme court decision about the mandate that got a lot of people upset on the republican side, so could they arguably saying we fulfilled our promise? are so immersed in it and the craziness that has gone on, the individual mandate is not only part of the , itlogical basis of the aca is the thing that keeps the marketplace as stable as they are. it is not totally stable in some markets. without forcing healthy individuals to buy insurance, drivepools will
premiums up and force more insurers to withdraw in some cases. many are concerned that would lead to a death spiral and speed the implosion of marketplaces. that is the whole issue. democrats and republicans agree there are major flaws and how some of these exchanges are working. it only makes a precarious situation that much more precarious with the individual mandate. julia: it will take time to do that. don't havesurers who clarity if there is a delay on that replacement over what will happen at the end of that, so want their still need to be an interim bridging measure to stabilize markets w?t ? be fascinating to see what we get. >> as we go through and the admin minsk it -- amendments get
put in, they still go back to the house, and there are major differences between house republicans and senate republicans on issues like justaid, like taxes, not the medical device tax, tax on anathema toviduals, conservatives that wealthy people are paying more to support the health care system as it is. those are issues that will come back up. julia: all of the lines from john mccain, we are not the president's subordinates to we are his equals. there is pushed back there. with ron johnson being given a firm talking to buy mitch mcconnell, whether for the optics and voters back home, there were people under a great deal of pressure here. >> definitely a whip process. here is what was going on from
senator mccain. number one, he was directing that a president trump to be sure. that andso directing mitch mcconnell, basically saying this process has been done in secret outside regular been, and the way it has run is against what the senate should stand for. whether this will be seen as washington as usual, i'm a big believer that a lot of what goes on is not taken in by the anrican people, but it was extraordinary calling out of the president and mitch mcconnell. joe: i keep hearing that term. anyone can put up any bill they want? example, allins for senator from west virginia seen as one of the real important votes for them to get given how many people in her state are affected who will introduce amendments, senator rand paul,
senator mccain as well, i will wait to see a bill that helps people in my state, and we have to see where we get to. the issue is how many votes they get over the majority to get to i went thel technical senate process we have. again, democrats will fight back hard. today is anything but a victory lap. julia: i think it will be a long washington week. fallet: along washington as well. you wonder to what extent they can get moving on things like the budget and tax reform. julia: whether jeff sessions is going to be around after. make an, bloomberg businessweek editor in chief. and interact with us directly. you can go back and look at
composting same-store sales that easily beat estimates. drinks, all-day breakfasts, and higher-quality chicken. that is your business flash update. scarlet: speaking of mcdonald's, we wanted to look at how the stock has performed at it again 5.6%, now a record high, the biggest point contributor to the dow jones industrial average. signs you as sales are turning around. global same-store sales hit a new peak. it has been recovering for the last eight quarters. this most recent quarter rose 6.6%. analysts were looking for an increase of 4%. joe: i went to mcdonald's for breakfast today, so i hope analyst put that in their models. it was a good experience. chicken higher quality come all-day breakfast, cheaper drinks, what does it for you? joe: cheap breakfast. scarlet: i'm not in breakfast. julia: or the fact you can get
miss this, donald trump jr. and paul manafort have testify beforeest i the senate judiciary committee. joe: bloomberg tv, special coverage of the fomc rate decision. we will be joined by several guest. coca-cola, and, ford, boeing, all reporting earnings. scarlet: that does it for "what'd you miss?" joe:
ever killed for the affordable care act. vice president mike pence cast the deciding vote. majority leader mitch mcconnell says debates will continue over the next few days. the plan is to finish with health care at the end of the week. senator john mccain, who is battling brain cancer, made the trip to capitol hill he voted to. move ahead on debating repeal. it is his first trip back since diagnosis. he said he couldn't support the bill in its current form. in a joint news conference with the prime minister of lebanon, president trump thanked to republican senators who voted to debate. >> i'm very, very happy with the result. over the now we will, next week or two,, with a plan that is going to be really, really wonderful for the american people. alisa: white house assistant press secretary michael short has