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tv   Bloomberg Markets Americas  Bloomberg  July 31, 2017 10:00am-11:00am EDT

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barton. this is "bloomberg markets." ♪ on this monday, from a $12 billion media guilt to president donald trump cabinet meeting and earnings out. we start with us home sales. month over month in june of 1.5%, better than estimated. year-over-year number of 1/10 of 1%. we have had housing -- we've had choppy housing data. it is not usually a market moving number. we continue to see all major averages slightly higher. track for another record close, potentially. we have seen that divide over the past few sessions. get performance of the dow versus the other major averages.
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we are also watching rates once again. we are watching the u.s. dollar as well as the 10 year. the dollar has been in a downtrend as of late. it is bouncing back today. just 1/10 of 1%. bond yields are rising just a basis point. if you take the relative strength index of the dollar on the bloomberg, it could be signaling potentially more of a bounceback. the relative strength index is -- is a momentum indicator 14 days. when it goes below this line on the bottom, it is potentially due for a bounce. of unicredit pointed out it was potentially due for just that. we will continue to watch that. there is a lot of media movement to talk about this morning with one deal happening and another deal being pursued. the deal that is happening in
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the discovery communications is the winner and the pursuit of scripts networks interactive. is paying to it combine the two companies. viacom was the other potential bidder in this triangle. looks like it is the odd man out. charter communications is appear they are determined to get a hold of a u.s. cable u.s. cableer -- companies. he is the chairman over softbank and he proposed combining sprint with charter. people familiar with the plan says he plans to target charter now directly. so, a lot of interesting, ongoing m&a stories going on. mark: .28 is the magic number. that is what he needs to rise in percentage terms to avoid falling.
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if it falls, it would be the worst rest since october. it fell for a second week last week. best performers under the month -- best performers under -- over the month. we are up for the day. earnings season continues. hbc shares rising. beating estimates. outgoing executive boosting revenue. to $2t will spend up billion and buy back stock. profits at its biggest units. the buybacks will be completed by december. repurchases of helping shares rise by 50% in the last 12 months. hsbc shares are rising. inflation data out of the eurozone back in line with
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estimates at 1.3%. did not move. have decreased. it confirms mario draghi said prediction -- it confirms mario draghi's prediction. self-sustaining with trends. setting us up for the september 7 meeting. what does that mean? will they made -- will they wait until october to taper on qe? those of the decisions to be made in a few months. the final charges the euro after rising for a third straight week, best run since -- heading for a fifth straight monthly gain since 2013. six month ago, peter navarro, donald trump's trade adviser, says the euro is grossly undervalued. still 14% below its fair value against the dollar according to the purchasing power parity
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model. 117. 50 model. highs not seen since january 2015. vonnie: fascinating. we will be speaking with mark chandler 30 minutes past the hour. we will definitely dig into that data. to the big corporate news. julie hyman mentioned earlier, scripps says yes to discovery. charter says no to sprint. forovery is by scripps $11.9 billion, creating a cable giant, but charter is not interested in a deal with sprint. sprint's owner is undeterred. lots to discuss. foring us is paul sweeney bloomberg intelligence. let's begin with discovery/scripps buy. lifestyles and reality tv, they do similar things. is a wise combination in the context of what we have seen
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in the past two years in terms of consolidation on the media distribution side of the deal. at&t by directv, time warner cable being acquired by charter, so we have a lot of consolidation on the distribution side. if you're dependent upon distributed to distribute your programming, you probably need to get some scale as you negotiate distribution agreements. that is been the driving force behind a lot of m&a chatter in the media space. would we see some of these free radicals, which is the term john malone used for some of the smaller media companies? will we see them get together? this discovery/crips deal is what the market was anticipating to take place. high quality cable companies getting together to get more scale. vonnie: they are pay $90 a share, assuming a hefty chunk of debt. 34% premium. is it a good price? paul: it is a full price. before you factor in any synergies.
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when you put these two gary similar companies together, there will be a lot of synergies. they're in marking $350 million of synergies over the next couple of years, so that will bring the multiple down. it will be a creator for the shareholders. discovery shares are down 5% of 6% in the early trading. mark: paul, let's talk about charter. japann is well known in for having inquisitive boots. he has them back on again, paul. he's eager to make inroads into the united states. but some investors are hoping that he would be deleveraging as far as leveraging. paul: i don't think this is what investors in japan were looking for. this is to the extent they want to get into the u.s. and cable business. charter communications is the second largest cable company in
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the united states, but if they want to make a run at this company, the price tag when you factor and charter's $65 billion in debt will be close to $200. it is a tremendous transaction in terms of size. how he would ever finance it remains unclear. mark: i mean, the fact that it is possible he might buy charter out right, might that tempt charter to enter into merger talks with sprint? could this be a clever ploy? paul: possibly. over the weekend, charter rebuffed sprint's intention or approach to perhaps to merge the two companies. charter simply thank him a wireless company. we do not need to own a wireless company and we don't want to merge with sprint, the weakest of the four companies. charter said no. so now he is coming back with his softbank. hobbies become of the end game at some point is to put charter
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and spread together simply because sprint is by further weakness of the four wireless companies, and either a strategic position in a buried difficult financial -- position in a very difficult financial position. vonnie: all of this leaves viacom and t-mobile out in the cold. paul sweeney, thank you. he is a senior media analyst for bloomberg intelligence. let's check in with bloomberg first word news. emma: president trump says retired marine general john kelly will do a fantastic job as white house chief of staff. the former home of security secretary was sworn in earlier today. kelly replaces reince priebus. he will have one thing that he never did, the backing of the president's daughter ivanka and her husband jared kushner. to reduce staff as diplomatic missions in russia by almost two thirds. that is 755 people. it is in response to the sanctions imposed by congress. president vladimir putin says
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he's up there is no further need for retaliation. china is betting that president trump carryout -- carrie out his threat toward north korea. the top american general called south korean counterparts to discuss a potential military response. and on capitol hill, republicans may have to choose between concealing another health bill or pushing to tax reform. there is no time to do both. to make matters worse, there are some must do items in september. congress must find the government at the end of the month and also lift the debt ceiling. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i'm emma chandra. this is bloomberg. mark? mark: coming up, biggest monthly gains since february, the dollar slumps, bolstering demand,
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futures in focus is next. this is bloomberg. ♪
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♪ york andive from new london, i'm vonnie quinn. mark: and i'm mark barton. "bloomberg markets" this is on bloomberg television. dull heading for its best month, retracting funds back into the metal. joining us is allen, chief market strategist. best since february. we tested 1300 a couple of times. will it be third time lucky? allen: third time a charm, that is the saying i think. there is always price shock potential and we are talking
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about the gold market. we tried to get that -- you try to get that important level, 1300. what is impressive business recovery, this rally for the last three weeks to bring us back to this 1275 level. a big reversal and i think the dollar will continue to go lower issues the potential geopolitically will make gold a good trade at this level spread fast at these levels. mark: a month decline. a double-edged question. decline, gold, like copper, two-year high. how much upside is there? well, the death of the euro currency was greatly exaggerated. the dollar continues to decline. there is no rate hike insight. that is not an issue in 2017.
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look for the dollar to continue to decline. you talked about copper. copper had been trading at a range as well, but now has prevented the upside. the key component in both of these equations for both gold and copper has been chinese demand. the new demand ingold, 10% above last year. that is very much a positive. i think those are healthy barometers. the chinese market continues to hold and actually move higher. so i think there is solid fundamentals that can support this latest rally in the mental market. mark: what about oil allen? this week less week of 2017. hovering around $50. we went over that earlier. one is venezuela given the events over the weekend. we are watching to see if the u.s. can step up sanctions. how are you feeling about what the market -- at the moment? allen: that is a potential positive.
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i have been talking about this. oil, when it declined down, people thought we would never see $50 again. how quickly things change. in the big picture, oil is trading between $45 and $55 since last year. it could get a little more of a squeeze, and venezuela could be a catalyst. but the weaker dollar is really the driver for a lot of these commodities markets to put an and current of support believe under it -- to put an undercurrent of support all of it. vonnie: fantastic. it is time for our latest business flash. looking at the biggest stories right now. china has asked the company that pop a wonderful story hotel in new york to sell off all of its overseas assets. people familiar with the matter said the government also once buying insurance to bring the motif back to china. -- policies has fueled
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reported second-quarter estimates. >> we are happy with the first half of 2017 performance. into theenues heading right direction across the major businesses and regions. good credit controlling the cost control. vonnie: outgoing ceo stuart gulliver has tried to improve profits by exiting many businesses in 18 countries. welcome hsbc said it will spend up to $2 billion buying back stock. and that is your latest bloomberg business flash. still ahead, conscious of the conservatives. after the collapse of obamacare repeal, congress has tough decisions to make. we weigh in on the gop's dilemma next.
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this is bloomberg. ♪.
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vonnie: we are going to bring you straight to the president. pres. trump: we admire what he has done and in homeland, what he has done has been nothing short of miraculous. stoppage at the border. mesident of mexico called and said, their southern border, very few people are coming because they do not -- because they know they are not going to get through the border, which is the ultimate component. i want to congratulate him on the great job he has done with homeland security. i have no doubt that he will be an absolutely superb secretary. we are well -- we are doing well. we of the highest market in history.
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we have gdp on friday, that. little mention. it got very little mention. 2.6 is a number that nobody thought they would see for a long period of time. i did say that he would hit three in the not-too-distant future, and everybody smiled and laughed and thought we would be at one point said -- thought we would be at one. 2.6 is a terrific number. lowestyment has been the in 17 years. employment is at the highest point in 20 years according to a certain graph any certain chart. --thenufacturers are manufacturers' enthusiasm level is incredible. with interesting situations. you will handle north korea, the middle east, lots of problems that we inherited from previous
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administrations, but we will take care of them very well. overall, i think we are doing incredibly well. the economy is doing incredibly well. and many other things. willdict the general kelly go down in terms of the position of chief of staff, one of the great ever. -- we are going to have we're going to work hard. can we are going to make america great again. it is all about making america great again. that is what i said. that is how we won does the collection. and that is what we are in the process of doing. general, it is really good to have you on board, and thank you very much. thank you very much, everybody. we will handle that. it will be handled. we handle everything.
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thank you very much. vonnie: you have been watching the president of the united states. he had convened a cabinet meeting to welcome general kelly as chief of staff. he said general kelly will go down as one of the greatest chiefs of staff, and mentioned the 2.6 gdp handle, saying it was a number that no one thought they would see anymore period of time. -- let'stion of that mention that that is just a quarterly number and we have seen number similar to that. the relationship between a democrat and republican party has been tough from the start. but can he in the gop fixes complicated relationship? the answer may lie and a new book called "conscious of the conservative."
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cirilli is here in new york with the author of that book. kevin: thank you. we argue was senator jeff flake. and he for being here in new york. we just heard from president trump swearing in general kelly. what you make of general kelly? sen. flake: i like him. i have dealt with him before. i hope that he will do a good job. we are at a point where we need some a surety out of the white house. kevin: there was a dramatic vote last week on health care. is it over? are you going to switch to tax reform? sen. flake: what is over is an attempt to do just republican votes. i think we have reached the end of what we could do with republican votes on health care right now. it is not going to end. we have to fix it. in arizona, 2000 and sony and will wake up -- 2000 arizonians would have woken up having to pay the fine.
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there are limits to what we can do on a partisan basis. -- and yourork colleague senator mccain is doing ok? sen. flake: he is starting treatment today and the whole country wishes him well. kevin: the book is called "conscious of the conservative." goldwater,out barry conservative principles, and trade. why was trade so important because his current administration has a different model of trade policy them what many have thought the republican party stood for. sen. flake: i mentioned very ry goldwater.bar we have strayed from a lot of conservative principles. one of those principles we strayed from his free trade. we are only 5% of the world's population. only 20% of the world's economic output. if we don't find markets for our goods, we don't grow economically, not in the long-term. and on trade, getting out of the tpp was a big mistake.
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that is important for economic reasons as well as geopolitical reasons. the one countries, particularly in southeast asia, to be in our orbit. i am very concerned about where we go forward on trade. obviously nafta is very important to the state of arizona. kevin: we talk about nafta because in mid-august, a meeting is set to resume in terms of that. when you going to some of these towns, whether in arizona, pennsylvania, ohio, wisconsin, michigan -- a lot of these voters that i have interviewed come and you know this, are deeply frustrated with nafta. with a trade agreement that was unfair to them. how do you as a conservative make the case to them that these trade agreements that open trade will help them? sen. flake: i talk a lot about that in the book. it is always easy for a politician to point to a shut factory and say that is because of free trade. china took those jobs.
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mexico took those jobs. but the answer is far more complex. to produce twice as much as we did in the 1980's with fewer workers. it is autumn is a that is been the culprit. productivity, better allocation of capital. arizona, arizona understands the benefits of trade quite well. we are next on the mexico. $15 billion of trade with mexico every year. so, it is something understood , and maybens because we are on the border into the benefits of international trade. our whole world order, if you want to put it that way, after world war ii, was based on the notion that we benefit as a country when other countries benefit. sen. flake: -- kevin: that does not seem what we're hearing from the administration. sen. flake: that is unfortunate, but. that is still the case we have
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provided concessionary trade policy to help the country is growing develop. now they are destinations. now they buy our products. we are all better off. this is very much a case of the rising tide lifts all boats. globalization has happened. there isn't an argument. the question is, do we latch onto it? we take advantage of it? or are we left behind by it? every day that we aren't negotiating bilateral or multilateral trade deals, we are falling behind. reform, something a lot of folks feel like they are left behind on. are you confident they the end of the year there will be some type of tax reform? sen. flake: i am. that is an area where i think the president's instincts are good. lower the rates, broaden the base. kevin: no border adjustments? [laughter] sen. flake: anything that was
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sparked a trade war is not good for us, but i do think we have to get tax reform. the failure of health care reform has made it even more important. kevin: is it frustrating to be senator right now and literally have a new cycle driven by the president's tweets? sen. flake: [laughter] yes it is. kevin: help us sort through this. sen. flake: when you wake up every morning and there is a tweet, you know, it is easy to say i'm not going to respond at all, and i think that is probably the appropriate stance to not respond to everything. but sometimes you need to respond. the presidentwhen talks about something that is simply not true, for example, that he one for the popular vote. or things like that. there are certain troops that are self evident -- there some truths that are self-evident. if we don't acknowledge that, we are not honest with our constituents or ourselves. so you have to respond to something. when the president, when his demeanor or comportment, and the
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things he says aren't appropriate, i think we do bear responsibility to stand up and speak out. kevin: i have to ask you this. do you think president trump will face the conservative challenger in the 2020 cycle? sen. flake: i have no idea and that is not my concern. my concern is returning the republican party to the principles that are timeless, the have animated the party for generations in a good way. limited government, economic freedom, free trade, strong defense. if we stick to those things, we will be far better off as a party in the long-term. kevin: senator jeff flake. i read the book on the train and it is awesome. i hope everybody take a look at it. thank you for coming in. mark: appreciate it. vonnie: kevin cirilli in new york today. thank you. speaking of tweets, the president is claiming a victory on the performance of u.s. stocks since his election.
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he tweeted this point, highest stock market ever, best economic numbers in years. lower --ent numbers lowest in 17 years. no white house chaos. here to break this all down is mark chandler. mark, for me as he was the president just 70 meetings about first, let me ask you what the president said about gdp. is he partially responsible? describing the state of the economy. we do have a strong labor market. i am not sure if all of it is due what has happened in the last six months instead of the seeds planted a while back. even of the stock market is doing well and the bond market
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is doing well, the dollar has suffered. in a row at a trade weighted basis. at the end of last year, the dollar rallied seven out of the last eight months on a trait-weighted basis. now it is down seven months in a row. looks like the dollar's fate has turned. vonnie: we will illustrate that. dollar downhows the right now. the stock market keeps rising. partially, one is because of the other. do you see this trend continuing? mark: it seems to me no matter what set of economic conditions, i would partly say because interest rates are low enough. the s&p yield is almost 2%. are you get on a 10 year bond is a 2.3%. on a relative basis, stocks look better than bonds. and on the other hand, this decoupling of the dollar from stocks.
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the reason stocks are routing is not just because the dollar is going down, but the dollar is going down because interest rates aren't there, which is helping the stock market. of thehe flip side dollar is the euro, at or near highest level since january 2015. is there a level, or is it the pace of the move that can make it in a comfortable reading for president mario draghi? mark: i don't think there is a level that the dollar goes down to will be trouble for the federal reserve. i think you are right. it is not just a dollar weakness but the zero strength -- it is not just the dollar weakness, but the euro strength. what mario draghi said is that we are watching it. i think we're heading towards 120, but i am not convinced that the long-term dollar rally is over. i think this is a long-term correction. it has not gone much further than technicians would predict
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after the huge move since the middle of 2014. mark: how much upside for sterling? 131 today. bigley for the bank of england, super thursday on thursday. of course, the quarterly inflation every report. the data is weak, isn't it? is it being driven by politics? soft brexit? mark: it has -- it has done better than i thought as well. maybe 134. it is a weak dollar story taking sterling look stronger than what it is. i put the sterling against the euro. the euro is with multi-year highs. i think sterling's weakness is being disguised. i don't affect the bank of england to do anything. it is a 5-3 vote. we can expect a dovish inflation report. franc, aseuro swiss
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we know has hit levels that we have not seen since the infamous day in january 2015. has is lost its status? mark: the swiss national bank has lagged behind the major central banks in the exiting from these extraordinary monetary policies. goingh m&a related flows on the swiss coming out of japan, as well as last week. this was still weakening off. it is a functioning of a strong euro, weak dollar. when stops, we will see the swiss banks strengthen again. getting concerned about the time elections next year. vonnie: back here in the u.s., we have a budget and a debt ceiling issue. and then you said just as the fed is time to decouple the balance sheet from high-frequency data, it would like to do so with fiscal policy as well. does it succeeded? can we continue with this tightening?
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mark: at the fomc meeting, the fed will announce a balance sheet reduction starting in october. the fed will have to do this. i don't think the problems with the debt ceiling or next year's budget will really prevent the fed from announcing the plans for october. by the time to implement this, a lot of the problems will have cleared up. vonnie: our thanks to mark chandler. mark: great stuff. coming up, crisis in venezuela take a turn for the worse. the embattled nation faces the threat of sanctions from the u.s. after a violent election that could mark the first step toward remaking venezuela's constitution. this is bloomberg.
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♪ vonnie: live from new york, i'm vonnie quinn. mark: and in london, i'm mark barton. in this is "bloomberg markets." vonnie: let's turn to one stock you have to watch. hearst traders are being the hold on trades on rentals. julie: it has to do with the outlook. hurts is that to report after the close of trading. and barclays is downgrading the stock to underweight going into that. pretty pessimistic saying that second quarter may be a sharp mess versus what analysts are estimating. says johnson, the analyst, it is not supportive of the stock price. needs closesays it to $700 million versus what our cleat is estimating.
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if you take a look at the bloomberg, we have a chart of the consensus. the estimate for this year for 2017 versus the stock price. we have seen the in the data estimate go down dramatically for the company. they are around $355 million for this year even as the stock price has been going up a little bit. sa and theon competition is unlikely to allow for much pricing recovery, and that the earning's focus will be on these pricing trends. mark: what is behind the recent decline of the stock? it has been bouncing more recently. your today, shares are down more than 20%, however, they have since june 21.% a couple of things have been going on. there was a report that pricing improved and not just at hertz, but some of its competitors.
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consider the enormous short interest in the stock. the short interest that is around 50% if you look at market afloat for around 50% if you look at bloomberg data. very, very high interest. in morgan stanley representative said -- absolutely short interest because adam jonas is saying some of that balance was coming from a short squeeze in the shares. that have been a contributive factor. i should mention carl icahn is the top shareholder of hertz with 85% share of the company. that is a bit of a wild card when you have that kind of involvement. we will be watching these earnings on tuesday to see if indeed brian johnson a barclays is correct. vonnie: and that is tomorrow. julie, we will be looking for to that. julie: next tuesday. vonnie: ok. mark: westech on the business
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flash, looking at the biggest stories in the news. a big taken the cable tv business. discovery communications agreed to buy scripps network, the parent of hdtv and the food network. the deal valued at $14.6 billion including debt. it could help discovery cut costs come again negotiating leverage with distributors, and expand internationally. forecast.its -- french drugmaker has been for to medicines for multiple sclerosis. they're rolling out a potential blockbuster, $37,000 a year -- saudi arabia is considering a flexible tax system for the government owed company aramco. aramco's royalty payments would increase in oil prices rise. sharesdis plan to sell
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in an ipo next year. that is your latest bloomberg business flash. now to venezuela, voters cast their ballots to elect members of the new legislative body, but resident nicolas maduro says it needed to restore order after months of protests. that is the body they have been electing. critics are calling it a power grab. e-cig the closer look at the venezuela we provide context and background on issues of interest. venezuela is a country in chaos for months. by capital has been rocked near daily clashes between protesters and police as president nicolas maduro clings to power. faced with reduced oil prices, the country is plagued with shortages of everything from toilet paper to antibiotics to food. that is on top of a triple digit rate of inflation, widespread violent crime and corruption allegations, and all of those street protests.
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venezuela's government says that more than 8 million people created in assembly to rewrite the constitution. winter of and supporters set a new constitution will bring peace to venezuela, but toonents say it is a rouge avoid elections that were canceled last year. the u.s. has warned of strong and swift economic action if any constitution is passed. yuma, the oil dependent economy has continued to collapse. signs of hyperinflation are appearing. maduro's predecessor was elected president in 1998 and revolutionized venezuelan politics with anti-u.s. rhetoric. he nationalized thousands of companies and assets, reducing the capacity to produce anything but oil. chavez use support to transform a pluralistic democracy into an
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authoritarian system. however, unlike chavez, majuro has struggled for popularity. here is the argument -- majuro's critic said he is so bungled management of the country, it is time for him to leave office. said itptical point out is made up of more than one dozen parties ranging from marxists to center rights and there is no single plan or leader. or the parties -- nor to the parties have a plan. majuro has shown no sign of backing down come up with the u.s. promising more sanctions and the opposition, the outlook could be precarious for maduro if he convenes the assembly. you can read more about venezuelan at him i click on the bloomberg. mark: let's stick with the political and economic fallout of the country. andy who joins us from the caracas bureau in venezuela.
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is the u.s. going to follow it with threats to increase sanctions? >> that is what we are waiting to see. there is nothing concrete yet. i am sure i do have to keller viewers that there has been a lot of commotion. we are not sure if they are going to follow through or not. u.s. senator marco rubio says he has urged the president to take strong action on the oil sector yesterday. we could have news coming very soon. mark: how devastating for the economy would it be given the close ties between the two of donations? buys of fifth of total crude output from venezuela. 95% ofe dependent for it. it accounts for a huge amount of the economy. strong sanctions, it could be devastating for the economy. we are talking about all walks
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of lives here. across the entire board. vonnie: tell us about yesterday's election. there were reports it was difficult to vote, just to get a polling place, and when you got ofre, there were hundreds names on ballots and not necessarily affiliated to any party. >> the big thing about yesterday is what we saw on the ground was a very small voter turnout. parts of caracas born even participating. caracas was like a ghost town on the east side. saw small chavez, we lines. only 200 people were in line there. many of them older residents. so, you know, we saw nothing like past elections with this huge crowd. we also saw on the east side, there was an opposition stronghold, clashing with national guardsmen, to her gas,
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explosion went off -- teargas and an explosion went off. vonnie: give us an update on how people are managing. how are the conditions? can people even get food? >> what has happened in minutes with over the past year or so, we have seen products at higher prices. the problem we are seeing his venezuelans are struggling to make ends meet. there is triple digit inflation. we are not seeing they can store shelves. even toilet paper, eggs, milk, things hard to find two years back, they are appearing, but as much higher prices that the people cannot afford. hunger is a real thing and people are skipping meals. literally tightening belts. infant mortality is up. it is it will fit for many venezuelans. mark: given the protest that have been continuing for months, what is going to end the opposition movement?
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how can opposition movement be appeased? cost numberition one demand that the opposition's number one demand was for free and fair elections. they want to see presidential elections, governments elections coming up sooner than rating -- coming up sooner than later. maduro's election is coming up in 2018. they want a clean slate anyone to bring in new bodies into the institution. they allege that the supreme court, and other institutions, packed with majuro's -- majuro's loyalists. he isre saying that trying to install a dictatorship. we do not know what this new legislative body will entail. there is that it will dissolve institutions, and also risk firing or even jailing some of one euro's -- president maduro's foes. mark: thank you.
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vonnie: still ahead, snap could be facing a disappearing act of the holdings of early investors. shares are down at the lockup period ends. we will examine. this is bloomberg. ♪
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♪ live from london and new york, i'm mark barton. vonnie: and i'm vonnie quinn. this is "bloomberg markets." sen. flake: shares of snap -- mark: shares of snap tumbling. 5% lower. adding to price pressure amid concerns of its ability to grow its user base. for more, let's bring in bloomberg's caroline hyde. the stock was down 5%. so bad now. caroline: not so bad, but it did
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hit a record low once again. the driving pressure is there. j.p. morgan estimates as much as 400 million shares could suddenly become available in the free flow. before, they were restricted because they were initial investors. finally, they are able to cash in. not great prices right now, but still able to exert the selling pressure. more shares in the market me more supplies means downward pressure on the price. you have a number of these lockups expiring throughout august. notably, august is when the also get the numbers and results people are looking at. this is a company that seems to be, at the moment, have plenty of concerns out there, whether investors worried about the shares coming into the market, but the user growth concerns. mark: august 10 come a big day. caroline: it is second-quarter results in all eyes are on how
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they can manage the ongoing pressure from instagram, which just continues to copy many of its playbook. it seems to be doing it very well. the amount of people using instagram's stories, a ripple of what snapchat has come is accessing the number of uses of snapchat. the ongoing competition has been a worry in the first quarter when you growth is slowing. it will be a worry for the second quarter numbers. all eyes on how they continue to monetize because they need to prove to the investor base that snapchat isn't just a whimsical idea that u.s. of the company, like unilever, want to dabble with. it is a must-have. it is the only way to access their user base. vonnie: it is interesting. he pointed out in the month preceding the lock off release, facebook shares, linkedin shares were down 24%, around the same as snap.
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but it does not feel at the same kind of story. let's move to tesla because we saw the first 30 cars blocked a lot -- first 30 cars roll off the lot and those owners are very happy. caroline: this is a great story. it was the fanfare on friday of its first 30 out vehicles in fremont, california. the spectacle was held at night so he could be let-up. really come out and showcase what is now no key needed, it with with your -- it syncs your smart phone. zero to 60 miles per hour. you will get there and five seconds as far as the scale of pace. this is model s on a diet. they are impressed, those who
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got behind the wheel, but the range and the use of the car. they set tesla is getting better and better at making cars. thisis interesting is who threatens -- mercedes and bmw. yes, $35,000 is relatively little, but it is still the cost of a luxury vehicle. mark: caroline, great to see you. coming up on the european close, we are following stocks and 35 minutes away at the end of the monday session. stocks are lower and we have a tender.2/10 of 1% to 600 is inching lower. "the closing quote is next. ♪
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bloomberg markets. ♪ >> here are the top stories. banksbc's turn as the close the second quarter of growth. discovery agrees to buy scripts competeue in -- helping in the ever evolving tv landscape. then in the u.s., republicans

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