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tv   Bloomberg Markets Americas  Bloomberg  July 26, 2017 12:00pm-1:00pm EDT

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vonnie: i'm vonnie quinn. welcome to "bloomberg markets." from bloomberg world headquarters in new york, here at the headlines we are following. the fed decides, the statement just about two hours from now. on when the fed plans to start thinking that balance sheet. president donald trump's preoccupations with leaks and loyalty are converging squarely on attorney general jeff
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sessions. is the ag's departure eminence? -- imminent? analysts see user growth, strong. we contextualize everything you need to know before the results. julie hyman is with us now, we're halfway into the trading day. it doesn't look particularly like a fed day. julie: it feels more like an earnings day than a fed day in terms of what's driving the training today. all three major averages that record again although the s&p just barely higher, less than 2 points higher. it does seem that the preponderance of earnings are coming in ahead of estimates and forecasts in many cases also thetive, so that is pushing true major averages higher. we could see a change or run any kind of fed rhetoric. we could also see a change more into the future. as vonnie mentioned comedy fed is expected over the course of
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the rest of the year to talk about shrinking its balance sheet. other central banks perhaps will do the same. what is that going to mean to stocks here? a look at the combined balance sheets comedy fed, ecb, bank of japan in white and the msci world index in blue. they've grown at the same time. there's been a lot of talk that easy money is one of the things that has fueled the continuing rally. there is a lot of discussion now about what will happen when those talents sheets start to shrink. that will be a topic of conversation. also a topic of conversation, earning straight let's take a look at corning, a company coming out with its numbers today. tates are s intertwined, as well one could argue, jp morgan saying in a note today that corning's third quarter implied total revenue guidance was a percent below what jp morgan had been looking for and was most likely driven by specialty materials, i.e., the glass it goes into the iphone and analyst jpmorgan
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thinks this could be linked to iphone delays. we also have the official announcement coming that the administration has been working with foxconn, the apple manufacturer, to get a plants built in wisconsin. that is something that has been in discussions, apple shares higher as corning falls 5%. on the media front and the phone front, we are looking at the telecom and media stocks today, at&t higher after that company's wireless subscriber growth was higher than estimated. in fact, it happened at all. analysts were looking for a drop in wireless subscribers, those shares of 4.5%, and verizon, comcast, and dish on here. the analyst says comcast should buy verizon because both companies need to push fiber deeper into neighborhoods. verizon getting a little pop, comcast a little change and dish down. the same analyst says dish would be the biggest loser in a potential deal here, the stocks
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being downgraded. finally, 20 change gears and take a quick look at commodities. we're seeing a continuing rally in crude oil and copper which continues to hover around two-year highs, in the case of crude oil we have the weekly inventories number showing a drawdown for the straight week in crude supplies and a copper continuous rally it looks like on the prospects of growth out of china. vonnie: julie hyman, thank you for that run down to monetary -- rundown. to monetary policy now, the fed not expected to raise rates today. meanwhile, president trump says he may reappoint venture janet yellen to a second term, indicating as well in a wall street journal interview that national economic council director gary cohn is a tough contender for the position, joining us now from washington is bloomberg international economic and policy correspondent michael mckee. let's begin with the fomc meeting and statement. any possible scenario at all in
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which it is in the fomc's interest to change anything? >> that's a good way to put it. reason is the calendar. there's no press conference after this meeting and if they did anything, the markets would be shocked. you would want janet yellen to be able to explain why they move. mitigates against anything happening. and if they did move, she would have a lot of explaining to do. you take a look at this chart of inflation. it doesn't matter how you measure it, whether you use the core, the headline cpi, or the pte. you can see the big kink there. they were rising, now they're falling again. if the fed is concerned about inflation, they don't have grounds to raise rates, at least not this one. vonnie: what is the federal reserve thinking and saying about the u.s. dollar and how that is impacting the current world of inflation? i know it doesn't comment on currency. of couse, central banks do.
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it seems to be the only asset class that is particularly vulnerable at this point in equities seem to be rising the matter what the fed does. the dollar has been sinking quite a bit. here's another chart, it shows the difference between it and the euro. the fed is going to start normalizing. the ecb has a -40 basis point base rate, and they are continuing qe, at least until the end of the year. you look at the divergence between the euro and dollar is a lot of currency traders are doing today. they are saying, something has to change. if the fed did anything that suggested some sort of type, even talking about the balance sheet coming sooner rather than later, it could have an effect on the dollar. vonnie: the fed is quite happy to see a weaker dollar even if it wouldn't admit that publicly. mind the weaker dollar. the idea of the dollar moving around is something for the markets to decide. a weaker dollar stimulates u.s. exports, and that's good for the
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overall economy. the fed still concerned about growth. interesting we get the seven quarter gdp numbers on friday. the fed won't have those numbers when they make a decision today. vonnie: the last little bit of data has been better than forecast. we had a period of really soft data, and it was a little bit maybe concerning, i suppose, and i wonder how the fed will talk about that data, given in the last couple of days at the richmond fed and consumer confidence. >> they will probably focus on the good news side of it and won't change their statement in terms of growth pretty much at all. they will talk about the fact that so far business investment has been ok, retail sales have in ok, and focus on the labor market, which as we saw in the june jobs report earlier this month, the numbers are pretty good. they see growth continuing and believe that is eventually going to lead to some sort of inflation. we come away with any
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clearer idea of whether an interest rate increase or the beginning of balance sheet normalization comes first? and if that might be september? >> that's the key question for people on wall street. they don't think we will get any hint as far as an interest rate increase. they do wonder if the fed will drop any hints about the balance sheet. statements on the fence so far have and by the end of the year, they could change that formulation and say, sometime soon, for example, which would suggest that maybe at the september meeting that's what we could get. a lot of people wondering if they're going to do that, try to slowly move the markets in that direction, to price it in to the extent that it isn't already. one little question or impression on whether janet yellen, if she were indeed asked to serve a second term, whether she would stay on and how likely that is. obviously the president said he wasn't ruling it out. perhaps that was a reaction to the mud of speculation, he definitely wouldn't ask for a second term.
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what do you think? >> at this point it's too soon to sell because you have to start with the caveat that nobody knows what donald trump is going to do about anything anytime. if he wants -- she's a low interest rate person, and she's got a track record and he did praise of the other day in "the wall street journal" article. you have people in in the republican party who think there should be a trump appointee no matter the political philosophy in place, especially if they want to take away some of the fed's independence and help steer the economy through the white house. might want to put someone in there who has loyalty to donald trump. from that you get the gary cohn speculation and you also get people being mentioned. it's hard to say whether janet yellen is going to be reappointed. the betting is she's not. there isn't a clear favorite to replace her. according to donald trump yesterday, we will not know for a while. vonnie: michael mckee, let's to
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talk about great bloomberg international economic correspondent. be sure to join us for a special report, the fed decides. 7:00 p.m. new york time right here on bloomberg television. michael mckee will be in that lockup. let's check in on the first word news this afternoon. mark crumpton is here with that. trump is banning transgender people from serving in the military. on twitter the president said the military must he focused on victory, and quote, cannot be burdened -- cannot be with the enormous medical costs and disruption the trans-genders in the military would entail. --june, a plan was allowed stevemajority whip scalise has been released from a washington hospital more than a month after being shot during that congressional baseball practice. underwentrepublican multiple surgeries during his stay. he has suffered fractured bones and internal organ damage.
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hodgkinson died after a shootout with police. dr. say scalise has made great progress. philip hammond says the u.k. wants discussions with the european union over transitional arrangements to start as soon as september. for that to happen, u.k. and the other 27 eu governments must pledge that they have made quote, sufficient progress on issues including rights for citizens, ireland's borders, and the financial settlement written must pay. the eu is eyeing a summit of leaders is the earliest opportunity. russia is warning its response could be quote, painful for americans, should president trump back u.s. sanctions. the bill will pass by the house of representatives, no heads to the senate. the legislation also imposes penalties on iran and north korea. russia says the measures make it
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impossible to reach the trump administration's goal of improved relations between washington and moscow. global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. coming up, the key issues being debated in washington today including health care and budgets. steps of hismp public complaints against jeff sessions. but will he fire as attorney general? this is bloomberg. ♪
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vonnie: this is "bloomberg
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markets." i'm vonnie quinn. let's dig deeper into politics. repealing and replacing obamacare. senate republicans are set to hold votes on a number of different health care bills, after vice president pence counts a tie-breaking vote to begin, and is less of other issues too in the budget and the future of attorney general jeff sessions. latest us now with the from capitol hill, bloomberg's chief washington correspondent kevin cirilli. and our political reporter is here as well. there's other things going on in committees right now. >> there's a couple of votes being held on the senate floor right now that will lead to an up or down vote on whether the senate wants to adopt the 2015 bill that repeals the affordable care act, at least it repeals most of its tax and spending provisions including much of the coverage expansion by the exchanges and under medicaid.
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this is a vote that hard right members of the senate, and senator rand paul of kentucky, had demanded great i spoke to a senior senate republican leadership aide just moments ago who said they do not expect this to pass. there are too many opponents in the republican party, but it's one in a series that they expect to have. unlimited amendments, anybody can offer whatever they want. vonnie: the strategy here -- is that really the only strategy that can actually have any chance of success? >> at the moment it doesn't look like they have anything else they can pass the senate. republicans are equally divided. one thing that has been floated, the skinny repeal which essentially hollows of the individual mandate and repeals the medical device tax. so, the theory that if they put this on the floor, worst-case scenario, they probably would get that 50 out of 52 members to
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do this. the house bill is very broad and under the rules, whether they end up passing a skinny repeal or something much more broad, they can still do the same thing when they are trying to reconcile with the house. i think the big step was yesterday. vonnie: kevin cirilli, what are you hearing? like this all be over tomorrow night? >> the drama in the senate might be over tomorrow night. they are doing what congress does best, kicking the can down the road. most notaqbly, the house freedom caucus chairman said that essentially a skinny version of this health care legislation is not going to have the support of any of the freedom caucus members, no matter if the white house tries to pressure them on that front. what does that mean? it means they are going to kick the can most likely when he gets to conference, into the fall and even potentially into early next year. and we all know that is
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controversial policy issues continue to drive onward, the less likely a path and an opening is. some senators are optimistic, people like senator richard shelby as well as representative marsha blackburn, a member of republican leadership in the house. i spoke with both of them earlier today. they are optimistic but they still can that skinny bill legislation is not cohesive in the house of representatives. --nie: >> that's one of two votes the democrats are pushing today, essentially a motion to recommit, that means sending the bill back to committee to look into it and do their thing with it. i think it is the democrats' way of trying to slow things down and also, trying to highlight to the public that this please of legislation to not go through regular order, it did not go through the committee process, there's no hearings or markups on it. i think democrats want to highlight. is not expected to pass republicans.
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they will have their ability, they're sort of messaging points. vonnie: let me ask you about the president. you've been tweeting a lot today. there is thisd, noise that's growing louder about attorney general jeff sessions. >> he's also tweeted a ban on trans-genders serving in the military, receiving sharp criticism from senators john republicans who actually served in the military good let's talk about jeff sessions. the attorney general, putting distance from him and the attorney general. i've spoken with several prominent republicans who are defending the attorney general. take a listen to what senator richard shelby had to say to me earlier this morning. >> i think he did the right thing when he recused himself, when people raise the specter of a conflict in the russian investigation. obviously that said the president off. sessions deserves better treatment than he's getting. just quite remarkable
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given that jeff sessions with one of the earliest endorsers of then-candidate donald trump but now quite frankly, there couldn't be more distance between them. vonnie: let's give it a few hours and see what happens. thanks to bloomberg's chief washington correspondent, kevin cirilli, and our national political reporter. coming up, they could be the biggest deal of all-time. what enormous acquisition analysts are calling for. find out next on today's deals report. this is bloomberg. ♪
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vonnie: this is "bloomberg markets." i'm vonnie quinn trade time for the bloomberg markets deals report. our bureaunow from is the bloomberg deals reporter alex sherman. what do you have for us? alex: today a citigroup analyst
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came out with a note suggesting to acquiret tried verizon. this is not the first time that analysts have looked at this megamerger between the largest u.s. cable company and the largest u.s. wireless provider. comcast of course has made or try to make several large acquisitions over the years. it wouldn't be outside of ceo brian roberts' typical mo to go after a large company like for ricin -- verizon. they made an offer to buy disney more than 10 years ago. they tried to buy time warner cable, that was a huge deal. regulators blocked that one. severalakes sense for reasons right now. one that verizon stock has come down a bit this year, down almost 20%. a deal may be more economically feasible for comcast, verizon is now significantly lower in market cap where even a few
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months ago, these two companies were about the same market cap, maybe verizon even a little bit higher. secondly, there would be a lot of synergies in a deal. he estimates $2.1 billion in annual synergies and a third reason to give their tops efficiencies that are involved in this deal, he says that verizon's current price doesn't suggest a new lower corporate tax rate, that might be something that comcast could take advantage of. a big macro reason here, sadly that comcast wants to extend broadband reach in buying a large wireless player might be the best way as technology advances in a new side view world in years to come. vonnie: why wouldn't it make sense? ad you explain it like that, tie-up would mean the whole vertical would be owned by one player. yeah, i can rattle off a
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few reasons of my head that a deal wouldn't make sense. this is a huge check. as youllion plus deal mention in the tease, this would be the biggest deal of all-time theoretically. another reason is that comcast actually has a partnership right now with verizon, something called an mdno, or comcast over the next year or so will really be able to test out -- do customers even want where the service from their cable provider? if they bought verizon they may not have a choice but this thing with this partnership, comcast can easily wireless and see if it works. that might be one reason why comcast wouldn't want to do a deal anytime soon. another big reason is comcast and charter agreed to have a partnership a few months ago, which said one company can't do a wireless deal without the other's permisison. charter doesn't want this deal to happen, at least over the next year, less than a year now, don't expect a deal to happen. maybe what the citigroup analyst
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is saying is that he thinks a deal could happen next year, otherwise charter will have to sign off on. thank you for joining us there from princeton. coming up, we'll hear from the mcdonald's ceo on rolling out a new delivery service. talk of a strong earnings report. up next, checking market street the dow up more than 4/10 of 1%. s&p 500 up 5/10 of 1%. the vix is below 10, 9.4 right now as the dollar index sticks around 94.2. this is bloomberg. ♪
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vonnie: live from bloomberg ,orld headquarters in new york you are watching bloomberg markets.
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day at 2:00tatement p.m. eastern and markets have been relatively quiet. more equity market movement than we are used to. the dow was up nearly half a percent. the dollar index has rebounded and is actually below 94. the big drawdown and oil inventories pushed oil up to $48.68 per barrel. for more, let's go to abigail doolittle. abigail: the earnings season for the second quarter is gaining speed. 170 of the companies in the s&p 500 have reported. 82% have beat earnings estimates and 76% have beat sales estimates. it is a solid earnings season as we get under way. let's take a look at the big
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winners and losers. starting with losers, we are looking at the internet company akamai, health services done about 6%. akamai disappointing investors to some degree. united missed in their fiscal year. both of those shares are down. as for earnings winners, we are looking at boeing. not only did they beat and boost, but they recorded free cash flow of $4.1 billion. the stock is up 8%. beat and here is the point that the company is saying that they are back in contact with anthem. that could also help to explain the 4% gain for the shares of express scripts. let's hop over to the bloomberg and take a look at this earnings season and how it could turn out. growth onthe earnings
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a year-over-year basis. we had that earnings recession when earnings growth was declining. now it is back in the positive. q1 was up near 14%. the estimate for this quarter is going by 8.8%. so far growing by 7.6%. at the bottom, we have the price to earnings ratio. a seven-year high, so something probably has to give. one we will be watching after the bell is faced look. shares had been higher earlier and don't now -- and are now honestly lower. investors are looking for more than 40% growth in both the top and bottom line. hiccup, itre to be a could be the company warning -- about theload's ad load's and costs.
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this is a two-year chart and we see a very bullish uptrend telling us the buyers are in control. hitting up on the top of that channel, telling us that shares of facebook -- the sellers may just reverse the near-term momentum and send shares back down toward the bottom of that panel. vonnie: abigail doolittle, thank you. to the restaurant business. shares of mcdonald's spiked yesterday after same-store sales topped estimates. we talked to the ceo, steve easterbrook about the strategy for the world's largest restaurant chain. frankly, the more local ambition we have is to become a better mcdonald's. that is what we have aspire to for the last two years -- inspired -- have aspired to for
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the last two years. is the pace of change in the world is only going to increase in people are not waiting on mcdonald's. we need to have more agility and risk-taking. it has begun to pay off. we are being -- we are beginning to see results. more customers are visiting, more often. >> you said yesterday, and this is a direct quote, our most important priority remains growing guest count. research shows all the answers. guests want so many things. i would like you to rank in order of importance, these things all guests want some of. cheaper food, healthier ingredients, different menu options, tastier food and a better experience. steve: the experience is key.
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part of that is speed. one thing we will never get a pass on is value and speed. that is a fundamental part of our dna. customers are getting more demanding, so they want to see us respond to the things that matter on their agenda. food quality is one of them. we have been investing in fresh beef, cage free eggs, removing antibiotics in the poultry supply chain. customers responded very positively. >> at the top is which? speed or value? steve: you can't pick one because they are fundamental. >> what comes after that? steve: increasingly, consumers are expecting a greater experience. as they conduct more of their lives on screens. >> they want that to be the same as it has always been? steve: they love it when we
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continue to invest in the quality of our menu. they love our core menu. in theontinue to invest engine room of our restaurant, our kitchens. as technology improves, we can capture those orders and prepare food hotter and fresher and customers enjoy that. >> those are the things in your control. there are some things not in your control, the economy. which economic variable do you find whether it is gdp growth, tax rates, gas prices, which is more directly correlated with the number of people coming in the door? steve: we see consumer confidence as the ultimate barometer. other aspects feed into it. the money they have at the end of the month, how much it costs to fill up their car. they are all contributors to the overall consumer confidence. >> is its predictive or does it lag? steve: -- is it predictive or
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does it lag? steve: there are different ways. need to be successful up until we launch delivery is customers out and about. if they have money in their pocket, they are going out to the theater, going out shopping and we benefit from that activity. strong economic activity from the consumer does play into immediate success. >> you mentioned the importance of taking risk. is delivery of risk? -- delivery a risk? steve: we had these conversations within our teams. if we are talking about testing whether customers like food delivered to them at home, we don't need to test that. we know they do. we can see the way society is evolving. do we need to make sure is that the food we deliver at home is
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of the quality and standard we expect and more importantly, that the customer expects. when you have a business like ours, which works at a certain pace, when you try to accelerate that, you want to make sure the restaurant level execution stays 100%. vonnie: mcdonald's ceo steve easterbrook earlier on bloomberg markets. after squeaking through a procedural vote to begin debating and affordable care longer placement in the senate, majority leader mitch mcconnell took the floor today and challenged both parties to offer opinions on how to improve any potential legislation. >> we are determined to do everything we can to succeed. we know our constituents are counting on us. we will work through an open amendment process. i know members of both parties have health care ideas they would like to offer. if you've got one, bring it to
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the floor. rejected hisate wide-ranging health care proposal last night. those voting no included nine republicans. president trump has not said if he will fire attorney general jeff sessions. he tweeted his disappointment that sessions recused himself from the russia investigation and added he would not hire him in hindsight. speaking to bloomberg, alabama's senior senator defended the attorney general. >> i think he did the right thing when he recused himself when people raised the specter of a conflict in the russian investigation. obviously that set the president off, but sessions deserves better treatment than he is getting. the jr.ssions was senator from alabama before giving up his seat to join the trump administration.
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senator shelby describes sessions as a man of integrity, loyalty and extraordinary character. the united states is tightening the screening of electronic devices larger than mobile phones for airline passengers. the transportation security a administration said it was phasing in an -- phasing in an order for people to remove devices from carry-on bags so they can be x-rayed separately. the move follows an announcement from homeland security that imposed similar requirements on overseas flights to the united states. -- showing little signs of backing down. opponents have called a general strike. venezuelans have been stocking up on food and water. news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. vonnie: thank you.
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coming up, ace books report -- facebook reports earnings after the bell. what investors are watching for. this is bloomberg. ♪
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vonnie: this is bloomberg markets. facebook is trading slightly lower today. this before its earnings release after the bell. they expect earnings to reflect strong user growth and engagement while investors are more focused on instagram and messenger monetization. joining us now from san francisco is a senior analyst for bloomberg intelligence. cost per userook
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change in this report? >> i think the cost per user issue was more relevant to -- theyecause they do 50% change, the highest since 2007, so the underlying demand is strong, but the investor attention will shift to second-half outlook in terms of the issue they were talking about and also the -- that they face. the 52% growth was superstrong. it is telling you the end market demand for mobile advertising is pretty solid. instagram and video should continue to help facebook. the focus now shifts to the second half outlook. vonnie: investors are looking at instagram and messenger. what would we expect -- what should we expect to learn about
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numbers and users and daily activities? but revenue,, yes, no. you can expect growth to you are seeing the adoption that they are getting onto snapchat like features is very rapid. they have a lot of room for expansion. vonnie: facebook has been warning about a slowdown for a while. almost like they are trying to set the bar low. what could possibly go wrong, today? >> five quarters in a row that they have been talking about how ad load's could affect growth rates in the second half of 2017. they have been raising the alarm, progressively. you can expect similar commentary. that is one thing that investors will watch out for and also the expense outlook. they are investing a lot more in
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tv, some vr efforts. the other avenues of monetization like messenger are still a long ways away from a contribution standpoint. watch out for the expense outlook and this reiteration of ad load's. focusedwill anyone be on social questions, what facebook is doing to police itself and the risks of that side of things? stepsy have taken a few and they will probably give an update on that. it really goes down to how they can use these methods to infuse with artificial intelligence and improve the r.o.i. for advertisers. vonnie: any potential bombshells in terms of innovations? andow you mentioned the are how facebook continues to work with we are devices and
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applications. might we hear anything that could really soak the sale price? >> it is difficult to see any of those three aspects to meaning the -- meaningfully contribution to -- contribute to revenue. you can see what is happening with the messenger monetization cycle they are in and how they plan to monetize it. analyst atior bloomberg intelligence joining us from san francisco. thank you. the united kingdom is the latest european country to mark the end of the line for diesel and gasoline fueled cars. the government said it would ban sales of vehicles by 2040. two weeks after france announced a similar plan. joining me from london is head of advanced transport for bloomberg new energy finance. this idea of brand -- of banning internal combustion engines seem so amazing that you could just
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blanket. it is extremely aggressive, probably achievable with a concentrated policy push. two things came out of the announcement and interesting pieces of context. we are on trend for ev's -- when we looked at this, they were going to approach about 80% of sale by 2040 just from following prices and competitive economics. the other thing that came out is if you dig into the announcements from the u.k. government, they are quite lacking on details on how they would achieve this or enforce this type of band. -- ban. council requirements pushing councils to do more on local air quality and this statement on a ban for 2040 attacked on. there are still details needed,
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but it is a very aggressive target. vonnie: and it is not that far away. it is like 23 years and in that time, we have a lot of infrastructure planning to do. things like the electric grid in the united kingdom. can it manage the whole country's fleet of vehicles along with everything else? >> there is something to note on the difference between new sales and the whole fleet. new sales can change quickly, the whole fleet takes longer to turn over. road, these ev's on the still only adds about 6% the global power demand, but there will still be localized issues. when these vehicles charge will definitely matter. vonnie: maybe they will put in something where if you charge it overnight, it will cost less. do you think the diesel emissions scandal has in this or is it just an effort to get greener?
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>> at first, they appear unrelated and they come about for different reasons, but there is a linkage and some of this trust in the car companies is being destroyed by the diesel in emissions scandal and as it continues to rumble on and potentially bring more automakers into it, it is destroying the trust consumers have in those brands and therefore, the amount that the politicians are willing to fight to defend them. this is coming about and if you look at the u.k. government language, it is about local admissions issues -- emissions issues. not so much about global co2. governments very concerned about the health of their senate -- citizens. vonnie: thank you. wine the ceo of
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elliott management says he is very concerned about the u.s. economy. this is bloomberg. ♪
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vonnie: this is bloomberg markets. -- explore successful leadership for the personal and professional choices of the world's most influential people in business. david speaks with paul elliott singer, co-ceo -- about his concern for the economy. >> how do you see the economy right now? paul: i am very concerned about where we are in terms of financial systems. after nine years of what i considered to be distorted -- it is sorted set of -- a distorted set of policies, but i regarded
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as monetary extremism combined with growth suppressive policies, regulatory tax. i think it has created a distorted recovery that has been partially responsible for this augmentation and exacerbation of inequality that is caused a combination of that and the incomplete recovery has caused and middle-class stress edginess, around the world, which has led to some political fringe parties and fringe thoughts, populism. after nine years of this artificial limitation on the part of financial assets, high-end real estate, art, the things that rich people by. what we have today is a global
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financial system that is just about as leveraged and in many cases more leveraged than before 2008. i don't think the financial system is more sound. i don't think that the fixes that have been put in the place have actually created a sound financial system. i don't believe that confidence is justified in policymakers and central bankers, and the fact that confidence has not been is obvious, but if and when confidence is lost, i think it could be lost in a very abrupt fashion, causing conceivably a ruckus in the bond market, stock markets and financial institutions. vonnie: that was david rubenstein with elliott management's paul singer. you can catch that episode
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tonight at 9:00 p.m. eastern -- still ahead, tom perez tells us how democrats can win back the hearts and minds of the forgotten american. a quick reminder you can catch all of our interviews on the bloomberg with the function tv . charts andnd lots of interviews and everything you could possibly want. stay tuned. more markets ahead. it is bloomberg markets: the trump economy. ♪
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david: 1:00 in washington, and 1:00 a.m. in hong kong. from new york, i am david gura. welcome to bloomberg markets: the trump economy. the senate heading for another health care vote. we will take you to capitol hill
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for the latest on what some are calling a vote-a-rama. is the attorney general's departure eminent? we will hear from tom perez, the head of the democratic national committee. he tells us how democrats can win back the hearts and minds of what democrats called the forgotten american's. ♪ -- americans. ♪ new sanctions imposed against individuals in venezuela. the venezuela bureau chief joins us from miami, florida. let the ask you what we are seeing here, a list of individuals hear from the treasury department. we are not looking at the wider sanctions. these are targeted on individuals. >> this list just came out minutes ago.

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