tv Bloomberg Markets Americas Bloomberg July 28, 2017 12:30pm-1:00pm EDT
♪ vonnie: here are the top stories on the bloomberg and around the world we are following. three republican senators and the skinny repeal bill. mitch mcconnell said quote, time to move on. we will discuss. that comes next. uber still on the hunt for a new chief executive officer. may be onng ge ceo the short list. behind the company's search for leadership. plus, today is the day, at least .or 30 people elon musk has newest electric vehicle.
a month-long efforts by senate republicans to pass house legislation collapsed early this morning. senate majority mitch mcconnell pulling the bill from the floor. joining us now from capitol hill to discuss what's next is our chief washington correspondent, and also alex waste, white house editor. let me come to you first and ask you. we've been over the details of what exactly happened in the early hours this morning and what a loss for the gop, particularly the gop leadership. what happens now to fix health care? changes are still broken and the united states. were literally audible gasp on the senate floor when senator john mccain became the third republican to vote against what was known as the skinny ,eal of the health care reform
essentially dooming the republican congressional he controlled congress's ability to pack health care reform along with the white house. this is a devastating blow from a politician for republicans and for president trump. this is something they campaigned upon for years. it also allows the administration and congress to pivot towards other policy initiative items, most notably tax reform. yesterday the white house announcing bare-bones specific on tax policy reform. you heard this from the senate majority leader when he said quote, it's time to move on. vonnie: we just got a statement from senator john mccain. i want to have a quick look at that statement, saying the fed's inability to get something done on health care is inexcusable, quote.
what the starting fresh on health care actually mean? -- does starting fresh on health care actually mean? what the starting fresh mean? >> i think what john mccain would like to do is start with hearings on what's working with obamacare and what's not working, and proceed to where thee markups committees meet together and republicans and democrats jointly write bills and offer amendments in committee. that would fix some of the problems. that seems to be what john mccain is talking about. i think republicans haven't given up passing something on a partyline basis. lindsey graham was at the white house this morning talking with president trump about health care. the white house certainly hasn't given up, they expect the senate to stick around for an extra two weeks into august. the white house still expects the senate to be here first two
weeks of august a new get something done. vonnie: what is the white house going to do to aid the process? it hasn't done anything except negative reaction up to now, including tweeting the now is the time to let obamacare fail miserably. >> are you suggesting that tweeting perhaps isn't the optimal way to get congress to act on your policies? you're right. the white house has not been super engaged in this legislation, especially on the senate side. we think that's because mitch mcconnell didn't really want them super engaged, and i think to get this over the finish line, yes, the white house is going to have to do more than tweet and send the interior secretary to threaten senators. vonnie: well, that's another matter for the gop leadership. because i as well, know you are very close to the action there, when it comes to the slightest that -- flight
anthony scaramucci is on now, who else is on that flight and are you hearing anything? >> we understand anthony scaramucci and reince priebus are both on that flight, which should make it an interesting plane ride. air force one goes dark when it lifts off from the airbase here in washington. we can't get any reports from our reporters while in the air, unfortunately. we don't know exactly what's happening within the white house between scaramucci and priebus. all think -- and anyone can argue it was smart what he said to "the new yorker." that there's going to be some sort of a clearing of the air, maybe a meeting that trump brokers himself personally to try to get his new communications director and chief of staff, at least, working together. -- if i were betting, i
would expect one of them to leave the white house. vonnie: exactly. let me come to you on this. it veryci has made clear that he reports to the president, he doesn't report to reince priebus. who has more leverage here, reince priebus has been chief of staff, in a traditional role that has massive amount of power, or anthony scaramucci, who seems to be a very trusted advisor of the president right now, and an ally at a time when maybe he feels under siege? >> both of them have the president's ear. the question is on which topics to each of these advisors have the presidents here on on boardiebus brought after leading the gop, the republican party, because of his close alignment with house speaker paul ryan and because the administration at the time, the transition team wanted a liaison with congress to accomplish a legislative agenda. if you look at what happened
with health care earlier this morning, there seems to be a disconnect. anthony scaramucci is much more in line with what folks are calling the original, the more controversial, colorful character, so to speak, of the early endorsers of now president trump. this is a clear political battle line in terms of policy within the white house. that said, who the president is going to listen to is anybody's guess. vonnie: we will have a interview mulvaneydirector mick in the next hour in which he will talk about the house holding on a budget resolution in september. it seems like it's just a couple of weeks away when things have to ramp up again. is potentially way harder than health care, nothing health care was ever going to be easy. is there any indication that this process will be less secretive, or transparent, less opaque, or more bipartisan than health care would? >> the budget resolution is
never bipartisan. that's a totally partisan exercise and requires a simple majority of votes in both chambers. whichever party controls congress passes its own partisan budget resolution. that's not a big deal, really great what will be a big deal is the actual spending plan for the federal government that has to be passed by october 1. the president will make a hard push to get money for his border wall in that bill. that could very well lead to a government shutdown. face debate here over raising the government's borrowing authority. a lot of conservatives in congress, even though they have one of their own in the white house, still don't want to increase the debt limit without attaching spending cuts to it. that's going to cause a huge fight in congress. sort of the upshot of all of this is that the window is closing quickly for health care.
vonnie: thank you for that, mugs -- much appreciated, alex wayne in washington. kevin cirilli, our chief white house correspondent. that's get a check on first word news. mark crumpton is here with more. mark: russia is striking back at the united states for those new sanctions approved by congress. the u.s. has been ordered to reduce the number of diplomatic and other personnel in the country. the interfax news agency says hundreds of american personnel would have to leave. russia's foreign ministry says relations between moscow and washington have become hostage to the domestic political battle in the u.s. u.s. and japanese officials are looking into whether the projectile fired today by north korea was an intercontinental ballistic missile. it was airborne for about 45 minutes before landing in the sea of japan. south korea has called a national security meeting and the white house says president trump has been briefed. north korea successfully launched an icbm on july 4.
friday prayers ended peacefully at the al-aqsa mosque in jerusalem. israeli police have been on high alert as the shrine has been at the center of prolonged tensions these past two weeks. the demonstration started after israel installed metal detectors at the mosque, when two police officers were killed there three weeks ago. muslims claim it was a move to expand control over the area. the food and drug administration has unveiled what it calls a comprehensive plan for regulating tobacco. the agency wants to cut nicotine and cigarettes to nonaddictive levels. the goal is to cut down on future smokers. global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. vonnie? vonnie: mark, thank you. coming up, uber is looking to fill a leadership vacuum left by the cofounder.
vonnie: this is "bloomberg markets." i vonnie quinn great let's get a check on the major averages now. we have been fluctuating a bit today after that fda notice came out that it was going to go after nicotine and tobacco. the tobacco companies fell. we have the dow jones industrial average unchanged, s&p 500 down. and the nasdaq down about 1/10 of 1%. not a huge directional move here on the friday train. the final letter of the assigned trade report turned out to be a
little bit of a disappointment for some investors. shares down more than 3% today. let's dig deeper into this. thursday's disappointment for some, but others overlook things like profit margins. abigail: that's pretty interesting. you must people would expect companies to absolutely dominate but they came out with a surprise earnings miss straight if we hop into the bloomberg, we can see what happened. open, amazon had been hired yesterday, making jeff bezos the wealthiest person in the world, up at 3% at the highs and then midday at 30. the reason i'm pointing out yesterday's trade, that tells us some investors out there were nervous going into the report, perhaps had more to potential earnings miss and then we have this big drop. they did miss earnings by 37%, they put up $1.93 on that spending there talking about.
they also talked about the possibility of profit loss in the third quarter. that can be a big issue because we have another big chart in the bloomberg which is g #btv8110. it's a five-year chart of amazon. in white we have the stock. in yellow we have the earnings projections, and we see back here -- all the way back in 2012 when there was a decline, the stock went with that decline in earnings, the same thing back in 2014. now we have these earning estimates coming in on these costs that always seemed to hit amazon. investors typically give the company a path. they missed like 37%. because there amazon and the top line, they are getting the pass rates now. that chart may suggest that perhaps the stocks will decline with the decline in earnings. vonnie: you have to say that's a tiny decline. actions shouldn't be priced in already. it's allowed to have earnings misses.
abigail: great points. said, even though we have this earnings miss, we have this revenue beat. speaking of the future, what is with potential negative for this actual negative action for amazon? it's a g #btv 6708, chart over the last year. we see a beautiful up trend marked by that green trend line. the reason all of this isn't entirely surprising to everybody is this area of volatility, from a technical standpoint it's called a broadening formation. it tells us sellers are getting ready to overwhelm. down here is the rsi overbought territory, the idea that the sellers are ready to take advantage of the fact that the stock is up 35% year to date and perhaps it won't stay quite that high for so long. vonnie: now that is a chart. abigail doolittle, thank you. the chartress. uber is set its side on the business world. the chief executive for its new
ceo. meg whitman over twitter said that she is not going to be the uber ce. -- ceo. joining us for more is our reporter. anymore clues as to who might want this difficult job? a beleaguered ceo, typically, in this job? >> i think we are starting to see a trend line emerged just from the 2 names that we have heard, we are on the short list before meg was withdrawn. these two executives have long histories, running giant companies, ebay, to you know, from a 30 person company to a 15,000 person business, or amelt, who has run ge for
tumultuous 16 years, but that is a conglomerate. it's also a shift to an earlier ainking at uber or they had one point considered, do we want somebody with deep technology industry experience or do we want somebody with experience running a sprawling global corporation? vonnie: they really sort of want somebody in there fast. it's almost another -- what direction they go as long as they put somebody at the helm. >> right. they have no ceo right now, so that's concerning for a company valued at close to $70 billion. there officially being run by a 14 person committee, the with the departure a travis kalanick last month, there is very much a leadership vacuum that they need to plug in quickly. we've heard they are looking at hoping to name a new ceo by around labor day. vonnie: why would jeff ml to be a good match -- jeff immelt be a good match?
he doesn't seem to have found any success with ge. >> that's true. he did not have the same reputation as his predecessor -- he'sch, but he's still a respectable ceo who ran a 200 plus billion dollars market cap company, and they are really looking for somebody with a lot of experience who can restore confidence in the business, prepare the company for an ipo, and then take it public. so they are looking for titans of industry, as we said, to do that. vonnie: it seems so odd to be talking through traditional ceo names for a company like uber. we appreciate it. bloomberg tech reporter, mark milian. up, electric cars affordable for more households
vonnie: tesla shares up 1%. we will be getting on to that topic in a moment. first, our latest lumbered business flash, a look at some of the biggest business stories in the news right now. sales of cancer drugs you to double from a year ago. according to people familiar with the matter, merck is taking merck basted sale projections for the year. chrysler regained approval to sell diesel pickup trucks and suvs in the u.s.. this after the environmental protection agency approved modifications to its emissions
control software. the automaker spent several months in talks with the epa and california regulators. that is your latest bloomberg business flash. alongmodel 300 today, awaited moment for thousands of customers who have coveted their cars. with a $35,000 price tag is a starting point, many buyers still find the electric sedan out of reach. what will it mean for elon musk's plans to attract mass-market drivers? 'joining us is jeff osborne, managing director. he is an underperform on tesla with a target price of $155, a far cry from where we're at right now, 337, up of 1%. >> thank you for having me. tonight is a big event. people have been waiting 18 months for getting their model 3. people are queued up, ready to go, to see the big end deal. >> it's crazy because 30 people
will get cars. >> they are still building the cars. what is key for the stock to work is to get the automated robots. to put it in perspective, their guidance is to build 30 vehicles next month in august by hand and then with ambitions to get to 5000 by december. that's essentially three a day in august, over 700 a day in december. vonnie: our customers getting frantic at this point? >> people want to know what they're buying. you still can't really configure one. it will be really interesting to see what consumer acceptance is of the vehicle that does not have an instrument cluster, there's just a 15 inch ipad like device. there's mature or anything like that. as well as a large portion of the 400,000 people who will not get the 75 -- get the tax cre dit. vonnie: do you anticipate a lot of customers acting -- asking
for their deposit back? >> it certainly could happen. i think certainly if there are some pickups in the production over the next six months or so, people see them what they were led to believe he might get a car in 2018, maybe that's a 2019 or 2020 event, i would frustrate people. -- that would frustrate people. vonnie: that's not even six months away. what you think tesla will get to? >> we are modeling just over 10,000 for the whole year. so we are in the fourth quarter. in august, and 30 at tonight's party prayed tonight's party will be really key to watch what some of the options are. by now we know it's a base price of $3500. we're assuming the average price will be in the 42,000 to 45,000 range. you just don't know what those options are. vonnie: i know the way you like to look at the stock is it is an asymmetric risk. it is well priced. boy, could it go down, right?
>> it certainly could. i heard the three big things investors need to grapple with, elon musk is a visionary guy. andneed to put dollars cents to his vision. at the shareholder meeting he talked about building 6 or 8 time.actories over that's another $10 billion in capital spending they have to announce. there's a couple car factories, especially in china. vonnie: is not like amazon where you are seeing a lot of revenue growth. jeff osborne, managing director at cowen & company. coming up, here -- we hear from the omb director, mick mulvaney. this is bloomberg. ♪
repeal of the affordable care act collapses in the early hours of the morning after three republican senators block the bill. mitch mcconnell says it is "time to move on." uses colorfulucci language to describe reince priebus in interview. my interview with mick mulvaney, the director of the office of management and budget on health care, and tax reform, and the odds of a government shutdown in october. ♪ the end of a busy week on capitol hill. effort to repeal the affordable care act fell apart. senate majority leader mitch mcconnell i dress his colleagues af