tv Bloomberg Markets Americas Bloomberg September 18, 2017 2:00pm-3:30pm EDT
scarlet: were live in bloomberg world headquarters in new york over the next hour. a busy first day in the human general assembly for president -- un general assembly for president trump. dalio ready to share his hedge fund secrets with the world. artifacts --ves at equifax could find themselves on the wrong side of the law. the justice department has launched a criminal probe into their stock sales before the massive data breach. the market is closing at about two hours time. that is get a check on where
stocks are trading with julie hyman. julie: the major averages are holding pretty steady. relatively modest gains. holding 2500.dex some strategists are still dubious we can add the here at -- end the year at these levels. dow is on a winning streak. seven straight sessions gaining. rowfourth and a row -- in a it has been at the record. in terms of the best-performing ,tocks on end index point basis you have industrials like
boeing.lar and goldman sachs represents the financials. you have stocks like jpmorgan in the s&p higher. bouncing back along with bitcoin. havens,ook at the places people tend to go when they're feeling risk adverse, the yen is falling versus the dollar. gold prices are down. vix is down as well. dalio, the billionaire founder of the world's largest had fun -- hedge
fund is giving away the secrets to bridgewater success. he plans to share his system of corporate culture with the world. ray: we are about to take algorithms and give them to others. we are figuring out how to make that fit in a number of other companies. to bed love these tools put in better hands. >> are we talking about big companies? ray: big companies. i don't want to mention their names. big companies. and they are eager to have an idea of meritocracy. >> it is a little difficult to talk about it in abstract terms. are we talking about a ge kind of company? ray: silicon valley type.
big silicon valley companies. particularly in this area, there is more of that notion that there is a power in crowdsourcing, decision-making. there is a desire. to passn to use tools them along, there is a lot of that desire. traditional organizations are more challenged i that. -- challenged by that. i am still seeing that in other organizations. in many traditional organizations, you are seeing them become less traditional. you are seeing them use tools
and data to understand people and help those people work together. in a transparent and honest way? that is the question. scarlet: that was the founder of bridgewater associates. for more insight on what he is doing, let us bring in our reporter. thank you for joining us. bridgewaterhink went from so secretive to opening the book on sharing their secrets that have -- sharing their secrets? >> it is interesting. big of me thinks that a part of the radical transparency is to put your ego aside and
take feedback and the information as you get it. i think part of it relates to dalio's ego. sincebeings have had egos we have lived in caves. he has been accused of the corporate culture at bridgewater being so intense and oppressive it is almost cult-like. is advancedsay, it management. it would be a self-realization of what he has always been saying. the corporate culture has been criticized, yet successful. there is no doubt he has reached the end of his career. is legacy he wants to build one he hopes will help american business through what he believes to have been a component of his success. whether these tools actually
will be is a tremendous debate. -- is of tremendous debate. it requires a very self-selected group of people. julia: what is at the core of that? strong paste -- strong principles, strong morals? >> complete openness. you did a lousy job on that interview last thursday. reply, there was a sense of, you were negative on it. -- people try to not tell people negative things. how do get greater transparency -- how do you get greater transparency and honesty in the investment process? how much of that results in his corporate success? that is somewhat unknown. there are very smart people and
making investment decisions. also: do you think this is about making sense of some of the criticisms and confusion around his techniques? do you think this is as much about the external environment, the political and economic backdrop? has he said, i have nothing else to prove? >> there was an excellent interview with him. we saw this section on his advice for president trump. i do think there is some thatity, but the notion the president should get honest communication and that he should select based on meritocracy won't go down as one of the great insights of all time. [laughter] julia: thank you for the advice. president, you might not want to tweet.
in remains the -- applicability remains challenging. scarlet: he said some big silicon valley companies might want to use his tools. could they transform their workforce? julia: we're just asking the question. 20-something percent of the people that joined in the first year quit. 10% quite in the second year -- year.n the second losing a first-year employee, that is unfortunate. apply to an to existing company, maybe these will be very useful for
collecting data. some management will collect 360 degree reviews and talk to you, that is very different from everything being open and public. this will be part of a more traditional corporate culture versus brutal honesty at every meeting, where you can quickly beonline and watch someone related on -- berated on your monitor. thank you for your perspective. let us get the check on bloomberg first word news with mark crumpton. president trump is calling for reform at the united nations. he spoke at a u.s. sponsored event. >> the united nations has not reached its full potential. this is because of bureaucracy and mismanagement. while the united nations has
140% and its staff has more than doubled, we are not seeing the results in line with this investment. mark the president addresses: the yuan general assembly tomorrow. theresa may is criticizing her foreign minister for his unauthorized intervention in brexit. may said the government is driven from the front and she is clear on what the cabinet has agreed on. the foreign minister wrote a newspaper article that led to the accusations. is doing military drills in western russia 60 miles east of estonia's border. troops from russia and belarus participated. the move has raised concerned from poland and the baltic states who criticized the lack
of transparency. russia says the exercises involve 15,000 troops. nato countries estimate could be closer -- the number could be closer to 100,000. u.s. and south korean warplanes took part in a bombing drill and flew near the border of north korea after the trump administration said it wants a peaceful resolution to the nuclear standoff the north. officials say the united states will use force if necessary. 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. up, how theg sweeping european regulations could spark an execution price-war. from new york, this is bloomberg. ♪
julia: this is "bloomberg markets." between a price war banks is looming. banks competing to increase their share of equity trading may be willing to cut prices for executing trades. our banking reporter joins us now. what -- was this intended? >> unintended. julia: talk to us about exactly what is going on. that the execution costs could be as much as 40%. >> catastrophic. all the intention has been on the impact of mifid on
research. paying for research involved hidden costs. when you separate those two, what happens? the other part of that is execution of trades. to believe the execution of trade costs is going to plummet as the bigger players can aggressively cut down on price, forcing others in the game who don't make a profitable business in equities to get killed. do it in the short-term and squeeze out the smaller players and incerrease margins. i was thinking of operating margins in equity trading, the lowest among the three main investment banking divisions. equities, morgan stanley,
jpmorgan, and goldman sachs actually make money. they are only the top three players. there are the only ones who make money. this could change the equation for them. reorientmifid needs to themselves. think, why need to am i in this business? can we outsource parts of this business or excerpt -- exit parts of them? julia: which business are we talking about? a lot of this matching of trading goes on electronic platforms anyway. >> you have to talk about principle versus agency. agency is matching the buyer and seller, with tiny commissions on each. there are areas of trading where the institutions extend risk by
giving you use of my balance sheet. that will be something you can charge for. scarlet: all of this begins -- begins in january. on the bloomberg, and you can see what is happening. imagine a price war is going to be set off in an industry which is struggling. over theeases 3% industry versus 2009. julia: we did that interview with the head of the business investment bank. involved.ctors were no one has figured this out. to look at what the actual bottom-line impact is going to be. scarlet: it is a curious time to
wall street circuit. he was paid 400,000 dollars last month to speak. paid $400,000 to speak at a health care conference. $31company sold some billion of stock, compared to its $12 billion a year ago. credited for the uptick which finds the number of deals up $.69. jpmorgan and goldman sachs are the top underwriters. department has opened a criminal investigation into whether top executives at equifax violated insider trading laws. looks as to whether the presidents were aware of the
massive data breach when they sold shares. announced a discovered the breach on july 29. it sold shares of a $1.8 million in early august. that is your business flash update. scarlet: we have more on that equifax story. i think one thing we need to make clear is that while there was a criminal investigation open up, all kinds of issues are covered. >> there is a lot of laws they have to follow, not just security laws, but state and protection laws. attorney's looking broadly at the issues at the center of this. scarlet: we are curious about what happened with the stock sale by three insiders which allegedly took place one day after the breach. the officialsys didn't know what was going on when they sold it. a quick response. >> to violate insider trading laws, you have to know about the breach.
what the agency is looking at is to see who knew what, when. what was discussed? how was the breach disseminated among executives? they will need proof that the executives knew at the time that there was a breach going on and still sold shares. if not -- >> they are in the clear. julia: the coincidence seems incredible. help us understand what laws the aunt insider trading -- beyond insider trading could have actually been broken? whether it is state, federal? there could be a want of investigations going on and we need to tie down what is going on. >> with the government tends to do in these investigations, the company was hacked. they want to make sure the company is being open with what they have found.
they are the victim in this situation, that they want to make sure -- but they want to make sure that they follow the rules. the company doesn't know the extent of the hack. there are a lot of decisions along the way. the agency has to decide whether to wait to get more information or disclose it later. thelet: it was very quick company came out and said officials knew nothing. it takes a while to figure out all these things. >> exactly. this is what the sec does. they want to see what is going on and can firm that was the sequence of events that took place. julia: fascinating, with the protocol would be in this situation. who would you tell if a data breach occurred?
the two most senior met in the company. -- men in the company. but they both would not have known. scarlet: how long does this investigation take? sec, probably a couple of months. it does take a wild. -- take a while. they're going to ask for relevant communications among executives. julia: great to chat. matt robinson on a equifax. still ahead, the commodities close. from new york, this is bloomberg. ♪
gold is dropping. hit as see it getting the dollar bounces off its recent lows. if you look at silver, it is taking a bigger hit. off by 3% at its session lows. silver is falling the most since july and now down for a sixth straight day. sugar, is the big loser. down 1.7%. curvesmes as the e.u. sugar production -- curbs on sugar production is set to expire. by 1/10 of a 1%. barrel, unablea to sustain gains about that. there is another hurricane out there, maria.
that is causing worries for traders. julia: analysts are issuing a word of caution for those optimistic on the recent rallies for oil. there isn't a positive market sentiment that will last through the end of the year of according to speculation. great to have you on with us. rallies above $50 a barrel. >> globals are attractive. see stockecting to draws in the fourth quarter. the market is somewhat anticipating that. they have seen a few positive signals that have caused them to push prices up where they are today. there may be higher prices than $54 given where positioning is, which is not quite as bullish as it has been. looking forward to next year,
the market is going to be -- have a pretty decent surplus. we're coming from a deficit market to a surplus in 2018. shale producers have prices they need to hedge for a pretty considerable growth. julia: you are fasting in -- deals.ng in opec >> we are expecting a more subdued deal going forward. just to allow for participants like russia and -- and iraq to be more happy with levels. evenet: why does opec matter to the supply-demand picture when there was always production ready? >> they have taken supply off the market. u.s. production is there to
respond to prices. scarlet: that is a bigger swing. >> a fairly large swing barrel. but it doesn't turn on and off like the opec producers. julia: what if there is word that the deal is off? where would oil be? >> you were talking about 700,000 barrels a day. scarlet: i want to talk about the storm. do hurricanes harvey and irma affect the supply picture, the refineries, compared to previous storms? >> you were going to see a lot of the same impacts. production has been restarting in the gulf of mexico, more so now than before. onshore production has been impacted. pipelineore so due to
shut-ins. you have a sizable production response onshore that is recovering. where you start to see the substantial impact on the market is on the refinery side, taking millions of barrels a day off-line. runs were down 3-4,000,000 barrels at peak a day. we are starting to restart that, which should resupply the product market. forecast?ear-end >> 54 for brent, 50 for wti. wti was on a widening pass, but blowout substantially to $60 a barrel. q4, we expect some of the
lingering effects of these hurricanes to be visible in the markets. we are expecting that differential to remain around four dollars. scarlet: thank you so much for joining us. julia: brent above $54 a barrel. scarlet: let us get you a check on the bloomberg first word news. trump and thet chinese president spoke on the phone today about north korea. the president is attending the u.n. general assembly. the chinese president is skipping the annual gathering. both leaders committed to maximizing pressure on north korea to restrict -- to enforce un security council resolutions. council has voted unanimously to tighten sanctions on pyongyang. president trump says the world won't have to wait very long to find out whether the u.s. withdrawals -- withdraws from .he iranian nuclear deal
he was asked by reporters if you would pullout of the of cord and responded -- of the accord, and responded, you will see very soon. he has until october 15 two respond. -- to respond. storm watchers are tracking hurricane maria, which is threatening islands already bothered -- already battered by hurricane irma. northeasternt the u.s. later this week. the interior secretary is recommending that six of 27 national monuments under review by the trump administration be reduced in size. a leaked memo to president trump recommended that two utah m onuments, bear's ears and grand staircase escalante be reduced. two marine monuments in the
pacific ocean would also be reduced. 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. up, president trump has threatened to decertify columbia as a partner in the war on drugs. we will bring you an exclusive interview with the president. from new york, this is bloomberg. ♪
citroen research. ubiquity is a network insider that citroen called a total fraud. this is the stock of the hour. >> it is not exactly a household name. this is a wireless networking by a guy --ed ownsd by a guy who also the memphis grizzlies. there have been various red flags within this company. the company claims it has an fl agenda: -- evangelical community. but another blogger has found out this community is comprised mostly of bots. our reporter points out he
thinks the metrics are too good to be true. this is a look at ubiquity's twelve-month operating margin. this is more than 30%. hp. is cisco, netgear, is $4 billion. how can this company be doing better in what is a commoditized business when you were talking about wireless networking? you --ere shady disturb distributors, like valeant. there is also not a permanent chief officer. the company is not commenting. the founder did tweet about this report and said, i let the products and numbers speak for themselves. my apologies for those affected
by these clowns, which was what he said quickly after this report. the company does have one defender, an analyst over at jmp. he said he doesn't see fraud, just an unconventional business model. they are heavily short in stock. the short interest has come down to some extent. there is a percentage of float that is still over 25%. there are other folks out here who are skeptical about this company. julia: jmp. quite interesting. this is a well-established business, but he would like to take a closer look at the distribution. scarlet: it is easy to find someone to talk to. >> one of the things citroen dead is use google earth to find one of its distributors -- did isn't use google earth to find
one of its distribute -- is use google earth to find one of its distributors. julia: great insight. president trump is in new york for the united nations general assembly. he will meet with latin american leaders and they will spend a significant amount of time discussing venezuela. president trump had strong words about the country last month, alluding to a military option if necessary. president has been critical of the comments. he joins david gura. >> we want venezuela to become a democracy. pressuretting on every possible so that could happen. we are working together. the more we work together, the more we cord nate, the more effective we will be -- the more we coordinate, the more
effectively will be. how can we cord and eight through our efforts -- how can we coordinate through our efforts? we hope for a peaceful position for venezuela. what is happening there is something that no one likes. along -- columbia has more to win or lose. we have 2200 kilometers of border. we are the most interested in a peaceful solution. are plenty of colombians in venezuela who have passports and could come back. how big of a concern is that to you economically? you could see many more colombians coming back across the border. >> we're already having that problem. many venezuelans are coming to columbia. we're opening our arms.
we have an obligation. this is a matter of concern. that is why we are so interested in solving the problem in venezuela. it is a very rich country. it has the largest reserves of oil in the whole world, bigger than saudi arabia. think the venezuelan situation ,ould very easily be improved if they have a good government. david: we have seen new sanctions levied by the u.s. against venezuela. things haven't changed that much. do you have a sense of what needs to change for the situation to improve? when you talk to president trump tonight, what will you advise him to do? >> i'm going to hear what
president trump has in mind. we told him that military intervention is something that was not in the agenda of any .ountry in latin america pressure in a collective way, and showing the communities oft venezuelan people, and showing the regime that there will be the support whatsoever, hopefully this will bring a change. said: the white house president trump stressed the importance of columbia doing its utmost to eliminate the trafficking of illegal drugs. to president threatened decertify columbia. how worried are you about that happening?
they voted in congress. this is a figure even higher than what the white house had suggested. we know that we have been working together for 30 years and we need to continue to work together. there is a responsibility for consuming countries. and consuming countries. we must work together. we are also concerned with the increased cocoa cultivation. opportunity ton have a structural solution to this problem. now we can go into these areas oa is cultivating and bring the presence of the
states. permanent, alternative crops. this is working. we have a dual strategy. we have been increasing forced eradication. and border substitution. we are committed. this is a matter of national security, the source of all the violence, the drug trafficking has been terrible for columbia. we have sacrificed the most in this war against drugs. it still has not been won. scarlet: that was david gura and the colombian president. if you want to keep in touch on bloomberg, david will be panel of experts
as part of our health care panel. you can find these interviews live on tv go. it is time for the bloomberg business flash. a big acquisition in the defense contracting industry. the company has agreed to the weapon and display systems company for $7.2 million in cash. it will also assume $1.4 billion in debt. the technology company is posting a $250 million funding round. by financing round is led the $100 billion vision fund. bloomberg reported the latest funding round in a july. the mexican beverage and retail giant plans to sell $3 billion of shares in heineken. its seat on the
network has 1 -- an online network has won the top award in television. shaw is here. this is a huge win for all all my networks. it is the first time any of them has taken the top honor. services the online have captivated viewers and audiences. we happened seen them get -- haven't seen them get the same recognition from these awards shows. hulu had the bell of the ball. tale" winsiden's five awards. like the dam was breaking a little bit. i am sure we will see online
networks pick up more of these prizes. them craftave seen original content with punchy owners. will they get more money to try and produce more content? >> it is a big deal when they are pitching talent and talking to agents and producers. everyone knows the money netflix has and they see the deals for comedians. sex hasn't had the same appeal, probably because they are owned by traditional media companies. that they have bragging rights. entice people to compete with hbo. we have done that. what most people
remember from the awards ceremony was a surprise appearance of sean spicer. how did people respond? media, peopleal were very upset. in the pressroom, some people were upset. there were some gasps in the awards show. there were a lot of questions about some of the different winners, including one people who made a reference to a white supremacist in office. what people forget is that this show is on broadcast television. moonves, who said that donald trump maybe not good for america, but he is good for the network. they are trying to appeal to all viewers. most of the backlash came from one side of the political aisle, people who do not approve of an award show condoning sean spicer
misleading the public. there is another segment of society that feels differently. scarlet: "saturday night live" won four emmys. where politics a reason for why it alienated viewers and ratings were not as strong? michaels, he was asked about whether "snl" was biased. he said we would see it in the ratings. they have had the best ratings they have had in 20 years. scarlet: our bloomberg entertainment reporter lucas shaw. we will speak with bob reynolds in our next hour. this is bloomberg. ♪
delivers consistent network performance and speed across all your locations. fast connections everywhere. that's how you outmaneuver. so new touch screens... and biometrics. in 574 branches. all done by... yesterday. ♪ ♪ banks aren't just undergoing a face lift. they're undergoing a transformation. a data fueled, security driven shift in applications and customer experience. which is why comcast business delivers consistent network performance and speed across all your locations. hello, mr. deets. every branch running like headquarters. that's how you outmaneuver. julia: it is 3 p.m. in new york, 12 p.m. in san francisco, and 8 p.m. in london. i'm julia chatterley. scarlet: i'm scarlet fu, welcome to bloomberg markets.
♪ are live and bloomberg world headquarters in new york over the next hour. here are the top stories we are covering on the bloomberg and around the world. president donald trump is meeting with leaders of the un's general assembly after he famously criticized the local body. offering headlines as we get them. president one of trump's domestic policies could squeeze the middle class. bob reynolds tell us which tax cuts could be on the chopping block and how they could hit 401k's. and wanting to throw its hat into the ring for amazon's second headquarters. we will talk about what it will mean for philadelphia's economy ahead. one hour from the close of trading, let's get a check on markets with julie hyman.
julie: stocks giving up some gains today. is largely evaporating. be a recordse would close for the index in the nasdaq is now lower. it is happening at a time when american consumers are more optimistic about stocks than ever. this is from the latest survey. 65% of respondents thought that $1000 invested in the top funds would be higher than a year from now. this is the highest percentage and records going back to 2002 of consumers that believe this. we are looking at probability right here. but that the nasdaq today just as an example of the melting away of gains we've seen.
we saw the nasdaq up around one third of 1% today. many of the large tech heavyweights within the nasdaq in the s&p 500 for that matter have been higher earlier today. earlier in the session than the broader nasdaq. apple, amazon, facebook, and alphabet are the major drags. i also want to mention mattel shares, the worst percentage performer in the s&p 500 today and this is when we see declines accelerating as the day has gone on. multiple reports about toys are us delaying payments to some of its suppliers and being in some kind of financial difficulty. it.mberg has reported it take a look at the bloomberg for s plc. in the middle, suppliers on the left, and customers on the right. walmart is the largest customer,
but toys are us clocked in at number two with 11% of the revenue. obviously, it could spell troubles for mattel. we are also seeing shares of the other toy makers get hit today as well. scarlet: that could get ugly. president donald trump is scheduled to meet in new york french counterpart president macron. president trump made his united nations debut saying the organism -- organization needs to do a better job. president trump: the united nations has not reached its full potential because of bureaucracy and mismanagement. while the united nations on a regular budget has increased by 140% and the staff has more than doubled since 2000, we are not seeing the results in line with this investment. trumpt: president addresses the you in general is
simply tomorrow amid new year tensions with north korea. u.s.,n the agenda for the syria, iran, and climate change. our editor in town for the unga. trump was not complementary of the u.n. when he was on the campaign trail and it seems like he's using the organization quite a bit when it comes to his foreign-policy agenda. >> he called it a club where people have gone to have a good time but he has found some use for it. specifically, he's had two successful rounds of sanctions passed against the u.n.. and he wants to see that maintained. this spirit of the 2015 nuclear pact, he wants to find a way to improve upon it or walk away from it.
>> coming to the united nations and trying to reaffirm the commitment to iran. it will be a big decision when the gets congress in the middle of october. >> he has about three weeks before he will certify whether he believes they are complying with the deal. and he's made it pretty clear he doesn't think they are. it is a five nation deal with the u.s. and iran. it will be very hard to get other nations to go along with any changes. all these very different countries can agree to it. ping andpresident vladimir putin are not attending this year. does not spend a lot of time here when he does come. sometimes he will give a speech and get out of town. be a good ideald to talk about north korea a little bit more. to make sure they are doing everything they can to enforce these sanctions.
the u.s. made clear that these sanctions need a little bit more time. and i do believe the president, if he hasn't spoken with ping today, he will shortly. >> they have the election in china, that is coming up. of course, the timing as far as north korea is concerned -- what about reforms that he's talking about? nikki haley has become an integrated part of the united nations. how do she and the secretary-general and president trump tied to that concept of reform and the u.n.? is it working? looking warily at trump as he took office. nikki haley has found an alliance talking about areas of concern like the peacekeeping missions that were heavily criticized for not being effective and not protecting the citizens they were sent to. they found a way to target u.s. cuts toward troubled peacekeeping missions and are
trying to see if there are other ways in terms of bureaucratic reform that the u.s. and secretary-general can work together on. julia: the united states is 20 percent of the budget or more? a lot of cash. .resident trump efficiency is always a good thing. now let's get a check on the headlines in the bloomberg first word news this afternoon with mark crumpton. >> he says that he and israeli prime minister benjamin giving it an absolute go in the middle east peace process. reporters, wetold are working very hard to reach a deal between israel and a palestinian authority. prime minister netanyahu said israel's alliance with united dates has been "never stronger than now under the trump administration." both leaders are here under the u.n. general assembly meeting.
justin trudeau and british prime minister theresa may say that their countries are working toward a new bilateral trade deal that would be in effect ther the u.k. leaves european union. both leaders say the template for a deal would be the comprehensive economic trade agreement which comes largely into effect this week between canada and the eu. create agreement will jobs and stimulate growth for people in canada and across europe. when we discussed the ratification as well as the importance of stability and continuity in the canada u.k. trading partnership into the future. ceta eliminates 90% of trade barriers between canada and the european union, president trudeau -- prime minister trudeau saying it will be a smooth transition post brexit. kahn says it is not
sustainable for the u.k. government to keep cutting police budgets and keep cities like london safe. >> they respond and an ,dditional two police officers the government making these cuts to london as we been doing since 2010. the mayor added londoners will see an enhanced police president. the trump administration has withdrawn a proposal to let president erdogan's security guards by $1 million worth of american-made weapons. lawmakers began expressing strong opposition to this sale after a violent incident caught on camera in may outside the
home of the turkish ambassador to washington. 19 people including 15 identified as turkish security officials have been indicted by a federal grand jury for attacking peaceful protesters. news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. scarlet? scarlet: tax reform could affect 401k's. we'll speak to bob reynolds from putnam investments that say savings plans need to be expanded upon and improved. from new york, this is bloomberg. ♪
workers in canada have gone on strike. fighting toys it is stop investments being moved to mexico. the strike will cut production. theunion wants it to have producer of the suv currently produced in canada and mexico. and that is your business flash update. options insights, stocks of had a tough year. ,own nearly 50% year to date options traders will look at whether a strong september and a much-anticipated fourth quarter box office lineup will help. amc entertainment wanting a hollywood ending. are new york, this is bloomberg. -- from new york, this is bloomberg. ♪
markets. scarlet: it's time for options insight with julie hyman. julie: joining me today is jim sugar of mk holdings. we have been talking about records and a little bit of a fade today. but it seems like most market participants are looking ahead to the fed meeting on wednesday and potentially announcing the details of his wine down on the balance sheet. there has been some commentary that that will present a problem for stocks. what do you think? we have to put this in the context of 10 years of qe now essentially inflicting. the fed has built up a balance sheet, $4.5 trillion. --s it cause instantaneous julia: we have to interrupted because president trump is speaking with french president emmanuel macron. let's listen in. trump: it's a very
exciting time. he's doing a terrific job in france. he's doing what has to be done. he is respected by the french people and he's respected by the people of the united states. we have a lot of things to talk about. we will be discussing many different elements. so i just want to thank you all for being here. i want to thank the representatives are being here. and we will have very productive meetings. france is a great country, a beautiful country. our dinnern forget on top of the eiffel tower where we really got to know each other. president macron: thank you, donald. thank you, everybody. would just say a few words in french. for the french people here.
julia: i'm going to step in there for the non-french-speaking viewers there. the president was getting a translation but we didn't have one of those for you. donald trump saying it was a great honor to be with the french president. he's doing a terrific job in france and garners great respect. plenty of suspects -- subjects for them to talk about whether it's the ongoing situation on north korea or the debate in the united nations, action over the least popular president. we will continue to watch that and bring you any further headlines. let's get back to you. apologies for interrupting. speaker.: i'm a french he mostly was saying it was a pleasure to see donald and they have a lot of topics to talk about. something the french love, the cinema.
your trade this week's on amc. the theater chain. points, of inflection this stock has been beat up because the box office has been terrible in the u.s.. right.ugger: that's horrible summer box office, down about 16%. never really seen before in modern times in terms of gross receipts at the box office. all of these stocks traded sharply lower in recent months. 60%.own almost we have probably seen the bottom . two weeks in a row on the strength of the movie "it." box office has outperformed expectations. there is a strong slate coming up in the fourth quarter including a star wars release. from a cyclical perspective, we are through that very poor summer.
they broadly look attractive and we will express are viewed -- our view. julie: how do you want to do that? mr. strugger: taking the stock pretty well supported at these levels is use a december expiration, sele 14 strike put, turn around and buy a 16 strike called. the payoff looks similar to being long stock and you commit to getting long down at the 14 level. up ended upside. if the box office does's strengthen, amc should do well in this trait should work out pretty nicely. that blockbusters coming out on the fourth quarter and maybe that will drive traffic. mr. strugger: pixar, star wars, and the trade we are talking about captures that star wars release the same day the options expire. julie: coincidence, not coincidence. back to you. scarlet: thank you so much,
julie hyman. let's move to europe. what is the eu view ahead of the prime minister's speech next week? we spoke to the principal vice president of the european commission. brexit on theof eu versus the u.k.. andf you look at the media compare the british media to the rest of europe, brexit is very much a topic in the united kingdom and much less so another member states of the european union. although, you know, we are all concerned, we all very worried and very sad about this, but we have many other things on our agenda. there is a greater sense of urgency that we need to do more as europeans to provide more security for our citizens. we need to do more as europeans
to provide jobs for our citizens. we need this all this incredibly complicated issue of migration. it creates an agenda for europe. it doesn't mean that brexit isn't important. more important to the citizens of the 27 member states. >> what would you like to hear from theresa may then? >> what i would like to hear is that we continue to look for a solution in this problem without doing any harm to any party. we need to do this. the u.k. is going to leave the european union. but let's agree to do is little
harm as possible in the process. will serve the interest of all citizens in the u.k. and in the european union better than anything else. boss ofs spoke to the one u.k. pub business recently. ,osturing by eu oligarchs encouraging british importers to look elsewhere for suppliers. how would you respond to that? >> the words i keep seeing in the british media. oligarchs, posturing, faceless, etc..crats, it doesn't have any implication on the way we negotiate. we have sort of grown together over 40 years. can you imagine how intricate that relationship has become?
need to disentangle that relationship. an incredibly complicated issue. i would like to go about this is businesslike as possible. i am extremely saddened by it. but this this entanglement should not be an emotional process but a businesslike process. , accusations,ords etc.. should not be distracted by them, either. our exclusive interview with friends timmermans. another city wants to throw a 10 to the ring for amazon's second headquarters. we will be talking to philadelphia mayor jim kenney on what it could mean for his city. this is bloomberg. ♪
according to people familiar with the matter, he told energy in the u.s. to stay on the deal. emmanuel macron and president trump declined to answer questions about the paris agreement. the u.s. trade representative robert lighthizer made -- gave his first major speech today since being confirmed in may. he said china's economic model represents a challenge to the world trading system and can't be addressed under current global rules. >> the scale of the court knitted efforts to develop their economy, subsidize, create national champions, force technology, and distort markets in china and throughout the world is a threat to the world trading system that is unprecedented. heisermbassador light added that the problem with china is substantially more difficult