Skip to main content

tv   Bloomberg Markets Americas  Bloomberg  September 21, 2017 12:00pm-1:00pm EDT

12:00 pm
vonnie: from bloomberg world headquarters in new york, here are the top stories from bloomberg and around the world. president trump john a in the sand with north korea, promising new sanctions on the road grid gene -- on the road regime. shery: his latest comments and getting support in the region. and we will speak with richard spencer, the vice-chairman of equities, his latest news in the market in the wake of the fed decision and the smp announcement regarding china's credit rating. and day when of delivery for the new apple watch, we take a look at what it means for consumers and investors. we are getting a check of the market with abigail doolittle. the rally seems to be over for now. abigail: we are looking at a pullback for the major averages. all lower, small declines for the dow and s&p 500, worth
12:01 pm
noting atf it finishes down, if the dow jones industrial average finishes to the downside today it will be the first down day in 10 days. take a look at the nasdaq 100, underperforming, all of the lows. it had been closer to 1%. on paper, worst day since august thatcredit let's see if choice of. let's see if we will have a pullback or if this will deepen. and the nasdaq tech heavy, nasdaq and nasdaq 100 british there was a report -- 100. there was a report that aid could be used in tesla cars. how over -- however, i was told the report was speculative, there were errors in the report and in fact they do not even make chips. those were high earlier, now reversing. it has been a drag though. down 2.7%, this after them science put out bearish
12:02 pm
comments. apple, down 1.2% after the securities put out a report yesterday that the iphone 8 the orders are significantly weaker orderse iphone 6 and 7 in the first three days of preorders. weakness for the nasdaq for sure. we have strengthened the energy complex, energy winners on the day. petroleum up 7%, the state of the year on paper. this after the company announced a buyback of 10% of their shares, $2.5 billion move. the biggest buyback since 2008, cash on hand. investors wanting a return. it seems to be helping the other emt names. we are going into the bloomberg to see what other investors want to cash in on. this is a two-year chart of shale production. 2015, we see into 2016, the lows. the price of oil started to recover in the spring and the and winter of 2016, we see,
12:03 pm
into 2017, we see the oil production really popping higher, so investors may be wanting a piece of that. the interesting thing, of course is the fact that that production could be adding to the global supply glut. lots of interesting dynamics. shery: thank you so much. vonnie: the federal reserve's decision to leave the race unchanged -- rates unchanged was expected, but a hawkish forecast for where the rate will be at the end of the year caught some by surprise. for more on what it means for the equity markets we have mr. spencer in our london studio. and a $151 billion worth of assets at baird. you tend to be bullish on stocks, do continue to be even after we heard the hawkishness out of the fed? >> i do. and i think as you say, i think
12:04 pm
this was well flagged. increases andate obviously a reduction in the balance sheet, but i was looking heterday at -- when announced he was reducing, a., he was stopping qe, and then the following year started to reduce it. qerybody was worried about that inflation would come roaring back. it did not happen and now fast-forward to today everybody has the same maurice -- same worries with the reduction of the balance sheets. i would say there was a subtle change from janet yellen last night. not be and so data dependent now, but more concerned about normalization. and normalization to me means better economy, better employment, better corporate profits. and we are just about actually
12:05 pm
to report the profits for the third quarter. all year i have talked about better earnings and i think that will underpin the market rather than concerns on the balance sheet. shery: still, when we take a look at the s&p 500, we see it very range bound. this chart on the bloomberg, it shows you that a small mid cap lagging in the s&p 500 considerably this year, where we are talking about the russell, smaller companies, the yellow and the green lines. how important is their performance for the s&p 500 to be with the breakout of their current range? patrick: that is a fair point, but you have to remember what the dollar has done this year. it is down 10% on a trade basis, so it favors the s&p 500 larger companies, the exporters and overseas. i know there has been a weakness actually overnight, but i would
12:06 pm
suspect that the valuation of the small and mid relative to the large will make them attractive again and we will see the money rotating. remember, a lot of the midsize and small companies are domestic and they pay higher taxes. we do not have specific taxes of the -- specific information on tax reform, but if we get details next week, we could see that group beginning to pick up again. shery: so at baird, where are you rotating, or where do have your tie-ins, where is a good to rotate to? patrick: we have spoken over the last year about being in the value stocks. and we still like the financials. we still see significant dividend opportunities there, maybe dividends growing twice the pace of the s&p. we like the energy sector. consumer discretionary, which
12:07 pm
has been under a cloud because of the amazon factor, basically we continue to like. we also like the health care area as well. predominantly, we still like the value side of the market. certainly the material side as well. so, we like some specific ones, but on balance we like the value side of the market. shery: patrick, we also had china's rating being cut and many people say it has no major impact. in fact, it was behind the curve with s&p. i wonder what the impact will be on the investor sentiment when it comes to the potential of this second largest economy in the world. patrick: you have to remember, their economy is growing strongly anyway. it is growing about 6% or 7% and i take your point about shadow banking, it has been around for many years. if you look at corporate debt,
12:08 pm
something like 170% of gdp. but that has been coming down all year because of the growth of the economy, so they should be able to manage that. it china has huge of foreign reserves, 2 trillion or three chilean bread and much of it is -- or 3 trillion. and much of it is in savings. a lot of the debt is owned by foreigners. it is manageable in a think it is well-known that they are taking policy decisions internally to correct that. they have a new head of the central bank. they have been increasing rates. and i think they have a handle on it. growth will continue. it will remain an engine of growth for the global economy and pmi's will remain strong in i think that will do well for the u.s. equities too. vonnie: patrick spencer, vice chairman of equities at baird. thank you for joining us. breaking news on global money will rio tinto, they
12:09 pm
start a buyback program. what the again, they will be starting $2.5 billion share buyback program. shares down 1.1%, that is better than they were earlier today. shery: now getting a check the first word news this afternoon. mark crumpton? mark: more sanctions on the way for north korea. president trump confirmed that this morning while meeting with the president of afghanistan. he is holding a strategy session today with the leaders of japan and south korea. he is expected to urge south korea to take a tougher stance. the president plans to visit puerto rico for a firsthand look at damage caused by hurricane maria. the storm took down power to the entire island and caused potentially billions in damage. hundreds of homes were destroyed and this threatens to continue
12:10 pm
the population exit is that pushed puerto rico into bankruptcy. in mexico city committee race against time to rescue a 12-year-old girl trapped in the rubble of a school. she said five other students could be trapped with her, but it is unclear whether they are still alive. the girl has been there for more than a day since the earthquake rocked the mexican capital and the surrounding region. morley and 50 people have been rescued. the death toll from the earthquake stands at 245. the united nations security council has agreed to help iraq collect evidence against islamic state. the council unanimously passed a resolution requesting an an investigative team to help iraq. iraq and britain led the measure. the evidence could help prosecute islamic state extremists for war crimes. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. shery: thank you. coming up on the show, a lateral
12:11 pm
meeting, donald trump meeting with leaders of japan and south korea after vowing new sanctions on north korea. the latest coming next. this is bloomberg.
12:12 pm
12:13 pm
♪ shery: this is bloomberg markets. i am shery ahn. vonnie: i am vonnie quinn. we look at the latest business flash may look at the biggest business stories right now. negotiating with two companies about a rail competition. according to people familiar with the matter, the german company is in talks with both companies from france and canada. the move could be complex and face big antitrust hurdles. vonnie: and snapple group same
12:14 pm
the combined effect of hurricanes and earthquakes in mexico will be weighing in on earnings. it had trimmed its forecast after a fall from major suppliers. dr pepper says the vendor has not been able to provide what it needs for the mexican operations and they plan to write off the inventory shares. they felt earlier to their lowest, 8.6%. and india's bank has cut about 2500 jobs in an effort to lower expenses and push technology, according to people familiar with the matter. who also cited an industrywide slump. this company led by the billionaire ceo, who founded in 2004. most of the cuts are in the sales team. and that is your business flash update. onnie: still ahead, google and -- striking a deal.
12:15 pm
htc'so -- paying for design team. this is bloomberg. ♪
12:16 pm
12:17 pm
♪ vonnie: this is bloomberg markets. i am vonnie quinn. shery: i am shery ahn. in the deals report, google making in interstate acquisition for a towel, the company agreed to buy part of htc's engineering and design teams for $1.1 billion, a move that could help bolster their own phone and hardware business. mark bergen covers google for bloomberg news. what is the endgame for google? mark: it is software, actually. they want to be a hardware player, but now they cannot compete with samsung and apple,
12:18 pm
but they want to make sure software services like assistant and voice products, and a lot of other apps and future revenue becauseare protected, now they are facing a threat from apple and with android, a lot of those in china not using the google services. vonnie: they did great work with the google chrome and so forth and they did get good market share, this is just more in that direction. how much market share will they have when it comes down to the final figures? mark: less than 1%. vonnie: exactly. [laughter] vonnie: how do they help with sales? mark: they are clearly getting the best engineers from htc, and well respected designers. they have done well with designers, but sales have a flattened. google, there is a debate on whether or not this is a business they need to have or that is nice to have.
12:19 pm
they have had hardware aspirations before, they purchase motorola. vonnie: that did not go well. time,it was a different 2011, 2012, not many strong android makers. they were worried about apple and they wanted to have a competitive force with of them. shery: it is about controlling the ecosystem. 1% does not really matter. maybe they would already have 75% or 80%. we do not know what they will do with the business, but they have a good track record. mark: right. and there is a push now toward augmented reality, something apple is serious about. it requires a lot more of the marriage between hardware, cameras and software and with apple, they can easily flip a switch and it could affect hundreds of millions of phones. google has a frustration because their ecosystem is so split they cannot control all the carriers. so this is an idea to sort of give them a guiding start for this, what we -- star, for this,
12:20 pm
what we think the ideal phone will look like. and consumers can say, this is what we want. and they can get samsung to go the same way. vonnie: what is happening with htc? mark: it is unclear. they are dealing with virtually all the and vibe. we are not sure if virtual reality will really be in market, but it has been an impressive product and some people say it is better than facebook's oculus. shery: what ip are they getting with this? when motorola wasn't sold, it was more than just hardware. ip,: they kept a lot of the which has been critical to pixel . the deal includes the nonexclusive ip arrangement, from what i have been told it is a way to avoid any lawsuits, so google is accused of using htc with the pixel phone moving
12:21 pm
ford, they are protected. vonnie: the smartphone business is getting crowded and you mentioned some asian players, so who is gaining the ground here in this battle? mark: it depends on whether it is monday or tuesday. it changes quite a bit. they were up a little bit. shery: not anymore. mark: they have been a huge player. of china.po out it is really a battle that it's going. vonnie: what about more acquisitions, google has 20 of cash. this was relatively -- plenty of cash. this was relatively small. mark: a lot of the acquisitions will probably come with the cloud business. somebody on twitter was saying that they are building hardware, but not networks, because they have divested from google fiber and a lot of the wireless business. but i think we will see that they are in reports to -- they
12:22 pm
are in talks to invest in lyft. maybe you will see more investment and acquisitions there. vonnie: thank you so much mark berg, joining us in the studio. vonnie: president trump says north korea can expect more sanctions over their nuclear program. he is meeting right now with south korea's president and the japanese prime minister, shinzo abe. this ongoing. more with what this could add up to we turn out to bloomberg's washington correspondent kevin cirilli. we have heard tidbits from the president, so what will the trilateral come up with, short of maybe sanctions that the u.s. will be imposing? kevin: i think it is coming before the united states, who is expected to announce the new round of sanctions. clearly, the japanese looking at the united states and president trump as one of their top allies in order to address the growing
12:23 pm
concern of north korea. we have seen in the past about the yuan ambassador nikki haley -- you and ambassador nikki haley has been able to get on board, but it looks like today the united states is looking to take a more direct approach. vonnie: we are going to go to the president right now. president trump: individual companies, financial institutions that finance and facilitates trade with north korea. address toed at my the united nations general assembly, north korea's nuclear weapons development is a great threat to peace and security in our world and it is unacceptable that others financially support this criminal, rogue regime. the brutal north korean regime does not respect its own citizens or the sovereignty of
12:24 pm
other nations. our new executive order will cut off sources of revenue that funds north korea's efforts to develop the deadliest weapons known to humankind. the order in hans is the treasury department -- the order enhances the treasury department's -- any individual that trades with goods, services and technology with north korea. and i am very proud to tell you that, as you may have just heard theirs ago, china -- central bank has told their other banks, that is a massive banking system, to immediately stop doing business with north korea. it has just happened, just reported. else,ition to everything what we will do is identify new industries, including textiles, information technology, and
12:25 pm
manufacturing, that the treasury department can target with a strong sanctions. is secretary mnuchin representing the treasury department and he is here today. the order also includes measures designed to disrupt critical north korean shipping and trade networks. from us too long, north korea has been allowed to abuse the international financial system to facilitate funding for its nuclear weapons and missile programs. the united states has had of representatives working on this problem for over 25 years and they have done nothing, that is why we are in the problem we are in today, in addition to frankly other countries not doing what they should have done. tolerance for this disgraceful practice must end now. and a new order will give the treasury department the discretion to sanction any
12:26 pm
foreign bank that knowingly conducts or facilitates significant transactions tied to trade with north korea. again, i want to just say, and xi of china for the very bold move he made today. it was a somewhat unexpected move and we appreciate it. new authority in this area apply to any activity that occurs following my signature on the executive order, which i actually just signed. foreign banks will face a clear choice, do business with the united states, or facilitate trade with the lawless regime in north korea. and they will not have so much trade. this new order provides us with powerful new tools, but i want to be clear, the order targets only one country and that country is north korea. the regime can no longer count
12:27 pm
on others to versatility -- to facilitate its trade and banking activities. many countries are working with us to injuries -- to increase pressure on north korea, by continue to call on all those responsible nations to enforce and implement you and sanctions -- u.n. sanchez and impose their own measures like the ones i am announcing today. is at tell you that this complete denuclearization of north korea that we seek. we cannot have this is a world body any longer. in just a few minutes, prime i and thebe and president of south korea will discuss what more we can do. we have had a close relationship and i think our nations have become closer because of this. i know it is going to be a great meeting. our alliance with south korea and japan has never been
12:28 pm
stronger than it is today. we share a commitment to creating a world where strong and independent nations honor their people, respect their sovereignty, respect the sovereignty also of other nations, and promote peace. thank you very much. and i would like to ask, we will start off with president moon to say a few words. >> and provocation coming from north korea and the japanese people have gone through a huge shock. and it is a huge concern that the japanese people have, because of location, so i would like to ask this -- i would like to express compassion for the japanese people in this regard. the three leaders have met at
12:29 pm
the g20 meeting in july in germany, and we issued a joint statement. and through the joint statement we set a firm foundation for close coordination through the three countries, based on which we have worked closely with the entire global community. putting more pressure on north korea. and at the general assembly of the united nations, the three leaders have come together. we all made speeches at the general assembly. and we met with leaders of major countries and we were able to gain understanding of these sanctions and we were able to urge the international community on the situation. i think the outcome, the meaningful outcome that the three countries have made. president trump just talked about the executive order through which the u.s. is going
12:30 pm
to be implementing sanctions on north korea, and also a major announcement made by china to take action on the dprk. i am confident that such moves will completely denuclearization of north korea and i would like to express appreciation to president trump and i would like to say that korea will closely coordinate with the united states on this matter. through the meeting today, i sincerely hope that there will of strongay leadership in coordinating these responses on the issue and i look for to engaging in further discussions and a solution on the problem. >> thank you very much. >> prime minister abe? in the last three weeks, two
12:31 pm
times north korea launched ballistic missiles -- 2 times going over japan. and they conducted six nuclear tests and the scale of the tests was be on the scale of the hiroshima bombs, more than 10 times the scale of the tests. this is an outrageous act. thank you to donald's leadership, we now have a summit meeting between japan, the u.s. and korea. so we are unified and the strength now can be presented in north korea. this meeting was quite a significant thing. i would like to think donald's leadership. -- thank donald's leadership. recently, the united nations sanctions were adopted unanimously, including strict sanctions, and i would like to
12:32 pm
thank the efforts of the u.n. ambassador from the united states. and the further efforts are needed. in this context, donald just referred to the signing of the executive or, the new executive order. so we are going into the new stage from the viewpoint of exercising stronger and new pressure. i welcome the new sanction measures of the united states and i would like to offer my heartfelt support for that. bearing in mind, those measures between the three countries, we will have the collaboration so that we will move toward the abandoning of nuclear weapons and nuclear programs by north korea, and we would like to go into the next action. thank you. >> thank you very much everybody. president trump: we will also be discussing trade deals and transactions with a japan and
12:33 pm
south korea. and that will be very important. but this is something obviously will take precedence. thank you all for being here. we appreciate it. see you later. . is dialogue still possible with north korea? >> thank you. >> thank you. [chatter] vonnie: you have been listening to president donald trump, who said he has signed an executive order, ordering any bank that either does trade with the u.s. or north korea, but not both. to china telling all banks immediately stop doing business with north korea. tona has told its banks immediately stop doing business with north korea. this is more than we were anticipating from the trilateral meeting between the president of south korea, also prime minister shinzo abe. we will bring in kevin cirilli.
12:34 pm
we also have marty schenker with us, the executive editor for government and economics. kevin, let me ask you, how prepared the washington community is for this, basically this escalation? kevin: i think it was really interesting. you characterize it perfectly as an escalation. hearing from prime minister abe about what he describes as being the next stage and pressure against north korea. japan was very very thankful for the united states' leadership, really a glowing endorsement of the president's team, including nikki haley who was singled out, and not rex tillerson in terms of this round of u.n. negotiations. it is a trilateral meeting, but china might as well of been in the room, because it was a huge deal for the chinese to say that their central bank will be
12:35 pm
stopping doing business with north korea. it comes couple of not only with the u.n. sanctions, but the united states rather, the executive action. and led by the president to say that they will further isolate north korea in terms of the economic community. shery: marty, let me bring you into the conversation. i have been to the talks in beijing before they collapsed, and any time we hear about the measures against north korea i cannot help but be skeptical, especially given there are so many behind the scenes backdoor dealings between china and north korea. how significant is this move? marty: i think it is significant. the real thing up against is, as they increase sanctions, they are reducing their options because at some point there are new sanctions left. then the military option becomes
12:36 pm
the forefront. at the forefront. it takes us, i think to a more ultimately, possibly to a more dangerous place. in regards to the chinese central bank, it was interesting donald trump announced it, because he said he may have seen this has happened and we as bloomberg news did not see it anywhere else except out of his mouth. [laughter] marty: so we are trying to make sure that this is in fact actor -- in fact accurate. vonnie: and you made the announcement on the behalf of president xi. marty: there was no press release, no announcement. it did not so -- it did sound like it was announced summer else. vonnie: and this would be a whole different scenario, china cutting off the lifeline of cash. many north koreans will die. marty: well, they are dying
12:37 pm
as we speak. the balancing act china have to take, they do not want to destabilize the government on their border. they do not want millions of koreans flooding over the border because of famine or violence or other things that are disruptive in north korea. so it is a very careful balancing act that they have to assume. shery: at one point does north korea become more of a liability rather than a buffer for china? marty: i think it would have to be, i do not think we are there yet. as i am sure you know, china definitely wants a non-western nation as a buffer on their border. if north korea were to somehow fail, and south korea became that border it would be not a great strategic thing for them. vonnie: i want to mention what the premise or of japan said, we now have solidarity because of donald's leadership and he said it was a new stage of pressure. if china is involved, how will
12:38 pm
north korea respond? we know they will not do nothing that they tend to maybe do something, you know, a little bit close to the bone, but not exactly strike in the bone, but this is a different scenario. marty: in the last few days the rocket man rhetoric and threats to destroy north korea from donald trump, everybody waiting for the response from north korea and besides maybe some mildly insulting remarks from their ambassador there has been no official response. what is the endgame for the united states, get them to the table. and will this north korean regime actually understand that as they step closer and closer, that is finally an option for them. vonnie: we will follow this extremely closely. thank you, marty and kevin cirilli. we have breaking news crossing
12:39 pm
the terminal. mercedes making a $1 billion -- theynt in th will be making electronic vehicles and batteries. we spoke exclusively with the production chief about the investment. >> we will bring a luxury vehicles to the tuscaloosa plant. vehicles in the future. and we will continue to establish our battery production in the plant as well. shery: we won out go to -- will now talk a little bit more about this, this breaking news. we will get you more details with our reporter as soon as we can. now we are going to first word news this afternoon with mark crumpton. mark: puerto rico has been declared a federal disaster area after hurricane bury a battered -- maria better the u.s. commonwealth. it makes puerto ricans eligible
12:40 pm
for financial assistance. hundreds of homes destroyed and officials say it could be months before everybody gets the lights turned back on. president trump plans to visit puerto rico to ss the damage, he spoke -- assess the damage he spoke about the destruction today in a meeting. >> puerto rico is in very, very tough shape. they're eligible grade is destroyed -- their electrical grid is destroyed. it is totally destroyed. and so many other things. we are starting the process now and we will work with the government and people of puerto rico. mark: the proposed health bill from the republicans will affect states differently depending on the obamacare status. according to a study, the 32 states that increased medicaid coverage for low-income americans would lose $180 billion. the states that do not expand medicaid would gain $73 billion.
12:41 pm
the study also found the bill gives states greater discretion on funding and it would allow insurers to charge higher premiums on pre-existing conditions. two candidates in the running for the job of federal reserve chairman. morris,llen, and kevin according to a bloomberg survey. cohnerged after gary publicly distanced himself from the president after the response from the president in charlottesville, virginia. the term ends february 23. barcelona facing more protests, separatists fighting for independence question with police overnight. the catalan national assembly calling for a permanent demonstration starting today as it pushes for a vote on october 1. catalans want independence following the economic crisis in spain and rampant political corruption. the spanish prime minister plans
12:42 pm
on deploying almost a 3000 national police and civil guard to prevent the referendum. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. vonnie: i want to update our viewers, china has ordered banks to suspend accounts under sanctions. it is now official, they were require banks and financial institutions to suspend opening accountss to those with north korea. what the president just said is true. coming up, we will hear about international trade. from the bloomberg global business forum. that is next. this is bloomberg. ♪
12:43 pm
12:44 pm
12:45 pm
♪ -- ie: shery: this is bloomberg markets. i'm shery ahn. vonnie: i'm vonnie quinn. trade becoming a dirty word and a favorite critique for the brexit movement and trump administration. the managing director of the ims spoke yesterday with justin bloomberg global business for him, about -- forum about how canada has embrace the global markets while others are point back -- pulling back. >> you have been a supporter of the multilateral system, including people, including leaders, including all participants and stakeholders. how do you see the role of this trading system based on unilateralism, based on rules,
12:46 pm
how do you see that going forward in the changing political landscape? aom your perspective as leader in general and the leader of canada? >> i think it is obvious in a room like this, trade leads to growth, that is the story of our world over the past century. and that is a good thing. we made a deal with citizens, particularly over the past generation or so, that we would pursue progrowth policies, including greater trade agreements and everybody would benefit. we have had growth, but the growth that comes from trade and other things has not necessarily reached everyone and that is where the anxiety that people feel around globalization, around their own futures, around their kids' futures, are so poignant and it leads to maybe falling into the politics of fear or division, or envy, or
12:47 pm
inward turning. and we need to now make the next step of promoting a trade agenda by talking about the progressive side of the trade agenda. it does not mean making a progressive case for trade, but putting forward progressive traded deals. and ceta which is coming into provisional affect tomorrow, we inherited it two years ago from previous canadian government. it was a real trouble and we realized what we had to do was make it more progressive and shift the frame around, so we made changes around dispute resolution mechanisms, we emphasized the labor standards, the gender aspects of it, and we got people to really realize that good trade deals, progressive trade deals focused on including everybody and not just multinationals and the wealthiest 1%, but actually
12:48 pm
citizens and workers is the way to move forward in growth that will include everyone. in a way that is really tangible. that for us was where we were on ceta and why we feel like we are getting to the finish line now. but it is something we have done in all her trade deals. the president of chile was supposed to be here and we just updated our own free trade with chile with the first-ever gender section in the trade deal, first ever trade deal with the gender section with that country. these are the kinds of things people are looking at to make that case that trade can be a positive force for citizens and workers, not just for the economy writ large. that is at the core of the argument. >> that would be the new standard of trade agreements, not the usual kind of let's eliminate barriers, but also deal with many other issues. >> blurring tariffs and
12:49 pm
eliminating barriers is part of wickmayer but making sure while we are doing that we are creating opportunities for people to succeed. christine: let me turn to you, prime minister of the netherlands, you are obviously part of this agreement. and i know that you are concerned with making sure that that growth, the benefits of trade will be included and clearly, domestically governments must use policies to respond to the risk of people feeling excluded. how do you deal with that? >> in various ways. iswas crucial that a deal about free and fair. free trade and fair trade. there must be a balance. i think this is the case and point. but as a national government you must do a lot to make sure that the population is taken a long, that they can deal with the impact. for example with education,
12:50 pm
making people are well educated and people can reap the benefits from trade deals. secondly, to prevent, likely see sometimes in the european union, that people in the same place for the same jobs get different pay. this cannot happen, so we need a system in which you have for the same type of jobs you have the same type of pay and circumstances. that is crucial. third, in the netherlands we have been successful in keeping the income, the income relatively, the income inequality at acceptable levels. they have stayed the same over many years. and by keeping that within these brackets that are acceptable to society, that also helps to create a sort of environment in which people will accept that trade is necessary. for the netherlands, we earn money by trading, by sailing the oceans. christine: you are historically the global champion of that, you
12:51 pm
invented it. mark: we are one of the most internationally connected economies. vonnie: and that was the managing director of the ims it was moderating the panel as you saw, featuring justin trudeau and the dutch prime minister, all yesterday at the global business forum. shery: coming up, when apple comes to town no engineers are safe. how they are using their department to poach top local talent, next. this is bloomberg. ♪
12:52 pm
12:53 pm
shery: this is bloomberg markets. vonnie: i'm vonnie quinn. shery: i'm shery ahn. apple quietly constructing a global network of research and development lab. the locations neighbor other
12:54 pm
technology companies with unique specialties like augmented reality and graphics processing. apple pushing into and looking to improve. no coincidence, the global footprint has been doubling as eir poaching operation -- thi poaching operation. we have alex with us from san francisco. tell us about these operations? is that where the cash is going into? alex: we have seen the r&d spending more than double to about $11 billion annually and as it happens we have seen them open offices all over the place, some not very big, but strategic. they are seemingly poaching talent from others and so on. we have thing graphics processing units, not apple with their own chip in phones with images and video and so on, and they have built offices near imagination technologies and the consequence of pulling those
12:55 pm
engineers to advance of their own u.n. -- r&d. vonnie: isn't this what companies have always done, it is what made sony, right? alex: they have been doing it a long time, but it is interesting to point out where they are doing it, it gives us an indication of what they think of as important, like chips and augmented reality, these are high priorities for apple that they are throwing a lot of dollars at. shery: the apple watch released today, is this a winner take all situation for the market? alex: tomorrow. shery: sorry about that. alex: what do you mean? shery: there are such high expectations for the apple watch, so where do we see the market going as a fragmented as it is right now? alex: it will be interesting to see how this develops in the next few months, because there have been increasing reports about the alliances that apple is trying to seal in the health
12:56 pm
care industry and insurance agency and if they can incentivize insurance a policy holders to subsidize the cost of an apple watch it could lead to growth in unit sales. there are questions on whether having the cellular productivity will also drive demand substantially, maybe perhaps holding it back. the point where it is significant is when they start breaking out the sales. in the moment it is also in the air pod. that will be the telling point. shery: thank you so much. still ahead, a republican from california will be joining us next. vonnie: and you can always say our interviews and everything else at tv go. ♪
12:57 pm
12:58 pm
12:59 pm
it is 1:00 in washington, 6:00 in london, 1:00 in hong kong. from new york, i'm david gura. >> i am sherry ann. storiesere are the top
1:00 pm
that we are watching. more pressure on pyongyang as donald trump target north korea with new executive action designed to make it more difficult for individuals, companies, and financial institutions that have done business with north korea. robert mueller has asked the white house for documents regarding the firing of michael flynn and fbi director james comey. a look at the latest in the trump russia probe. and our interview with the turkish president. what he had to say with his relationship with russia and the ongoing conflict in syria. david: donald trump announces new actions to expand u.s. authority to target individuals and financial institutions that finance or facilitate trade with north korea. >> today i'm announcing a new executive order, i just

13 Views

info Stream Only

Uploaded by TV Archive on