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tv   Bloomberg Markets Americas  Bloomberg  October 18, 2017 2:00pm-3:30pm EDT

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chatterley. we can see the dow at record territory holding above 23,000 and the is a be found thousand -- and the s&p 500 gaining a new high. chris: good afternoon. janet yellen's inflation mystery continues. that's today's beige book. all 12 regional districts of the federal reserve reported modest to moderate growth. an increasing labor market tightness. they called it widespread tightening of the labor markets. indeed, we are seeing more reports of labor shortages in some areas. chancesving to pass up to expand their businesses because they can't find enough workers. the same time, overall wage inflation was modest, again. some sectors along the way are showing higher price pressures, construction and transportation were singled out. , it wage inflation
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continued to remain subdued. the beige book gave us perhaps a hint of one explanation for why that is. in cases where there is wage inflation or higher input costs, the firms say, and materials, a law firms are still reluctant to pass that on. it is a very interesting line from beige book. several districts noted increased manufacturing input costs, but in most cases, these weren't passed through to selling prices. that underscores a theme we've seen for some time now, where companies in the u.s. simply lack the pricing power they used to have. when their costs are going up, they are very reluctant to pass them on to customers. a couple last notes about impact from the storms we saw a earlier. dedicating part of the u.s., some good news in bounceback. whatallas fed reporting
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they called notable strength in ,anufacturing, hiring numbers and indeed, some of the bounceback is showing up in districts as far field as the chicago district, which reported increased demand for construction materials, and of all things, rvs. federal emergency management trailers,urchase of that falls into the category of rvs. scarlet: bloomberg chris condon of the federal reserve, thank you the latest headline. how does that tie in with you as markets? -- with u.s. markets? stocks are a record highs and we remain at record highs. julie: not much reaction to the beige book report. we doesn't really change the narrative, which is risk on is the sentiment. seemingly no matter what else is going on. the dow is the performer of the day pushing above 23,000, at a
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record. the s&p is also at a record, although it is more modest and the nasdaq is gaining about the same as the s&p. a little over .1%. checking on the bond market today, if there was going to be a beige book reaction, it would more likely be in the bond market. not seeing much movement there either. seeing yields hold steady near 2.34% with a four basis point gain. that has been supporting the financials broadly today, which had been one of the best-performing groups of the session in the s&p 500. i want to point out as we look at this dow climb and as we approach the anniversary of black monday tomorrow, i want to look at how many times we had a record this year, as it happens once again. we are looking at 51 times out of today. we are seeing this surge here and perhaps having the highest number of closing highs since 1995. it's worth pointing out that the move has been modest. right around here is a half percent gain and appears a 1% gain.
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you can see for all the records we hit this year on a daily basis, the moves have been relatively small. that's a theme we talked about quite often. elsewhere, in terms of individual movers we are watching today, electronic arts is one of the laggards. that's one of the things holding back the s&p 500. 2.5%, itc arts down will close its visceral videogame unit and proposed -- and postpone the release of one of its star wars titles. another star wars title is still on track. some of its competitors are higher, activision, blizzard, and take two interactive. u.s. treasury secretaries typically shy away from making productions about the markets, i can't believe we are talking about typical where this in this region is concerned, but with stocks at record highs, things in part to the prospect of big tax cuts, steve mnuchin is waiting the flag of caution. in interview on politico, he said to the extent we get the
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tax field done, the stock market will get higher. but there is no question in my mind if we don't get it done, you're going to see a reversal of a significant amount of these gains. joining us from los angeles is , head of or folder management at intelligence -- at intellectus partners. it is a buying opportunity to mr. emons: -- is it a buying opportunity? mr. emons: you have this environment of inflation and low interest rates. in a bind ofus ever grinding higher stock markets. i should say, that could be big disappointment it eventually the tax reform doesn't happen. the market seems to be convinced that ultimately there is a bipartisan support to get that reform passed. the market keeps banking on this idea of the moderate economy
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with lower inflation and ultimately, tax reform. kind of effect with this morning have on the psychology of a market, after prices have been building up all year long? and it's generally of knowledge that we are fairly late in the cycle? mr. emons: there's this idea that we are at record highs and that makes people uneasy. you can see it from investor surveys. people who are moving towards more conservatively positioning to potentially see a social correction in the market. you have that conservative the market gets tired because people can't stay behind. the psychology of investors is twisted in terms of stay conservative and liquid, you cannot participate in this rally . if you don't want to participate, then you lose out. julia: are we seeing that from fixed income investors? they are playing defensive with record ratings in short-term debt securities in particular. mr. emons: that's true.
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short debt securities, short duration is really what the fixed income investors currently have come in addition of taking more higher quality securities on in their portfolios very that's a reflection of a view of the economy itself that eventually, we're going to move towards a much slower economy, potentially risk of recession. they've been signaling this ongoing flattening that eventually we will end up in a milder growth environment or a recession. that's the defensive play that people think that bond investors are more conservative than stock investors. it's a signal that what's ahead of us in the next year to two years. scarlet: there's a lot of discussion on which part of fixed income could be bubbleish. you identified u.s. investment-grade and european sovereigns. mr. emons: there are other reasons why this is. you think the european sovereign debt market is one key example, it's not just the european central bank, there's also a lot
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of technical factors at play. as a short man and the is an intervention. there's also the short bands for the cbs market. keeps this market in a very overvalued state and while the fundamentals are actually improving, now the ecb is going to taper the program. you can see the amount of purchases the ecb has done relative to what's been issued or so gigantic that eventually, the market will reconcile this overvaluation, and that's what's likely to happen over the course thate number of months european bonds are normalizing quicker. julia: how and when? we are starting to expect mario draghi to talk about what to bring looks like an retractor ring -- and retracting on the size. you can talk about return and sizes far as bubbles are concerned, but you have to look at actually with driving them. and when it if that source disappears. that's a good point.
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if you take the european market or the investment-grade market in the u.s., these forces keep his overvaluation in place. this excessive demand and index funds for u.s. corporate bonds, the short band another kind of regulatory forces thank you devaluation of european government bonds high. that's how i think the bubble will play out, as these forces change, it will reveal the size of the bubble. it seems to me that these two markets are prone to that risk of seeing the revelation of a bubble. scarlet: let's talk about china, after xi jinping gave his address. you are looking upon yields, and the spread is when the five-year in the 10 year. i have a chart on the bloomberg which shows the 510 spread in china.
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the second time this year. mr. emons: there's something more than an economic slowdown a recession. it's about this campaign they started earlier this year and it's a bit of a technical picture. they use liquidity injections at the same time, also controls the depth of expansion in china. you get these awkward liquidity effect on a government bond market in china that leads to inversion and also leads to an inversion in corporate bond lower, soey are a bit this aversion is about leveraging in china. in it now seeing this for the second time as this converses on the way, suggests that the market will continue this campaign in the next number of months. perhaps more intensified. julia: this idea of flexibility with the growth target we are
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talking about, does that give you some elements of comfort in that if we have some flex ability around the growth target and also to the downside as well, there will be less likely to have these ad hoc punchy stimulus effects in order to try and hit a target mr. emons:. mr. emons:that's the -- hit a target. mr. emons: that's the point. the evaluation we saw in august 2017 was very negative. they don't to go that route. same thing they did in 2015 by propping up the stock market. they can actually use the commish of liquidity injections to keep the system afloat. at the same time, trying to catch up reforms. i thought it was important in the speech last night that he did talk about reform of currency and interest rate regimes. it's ultimately long-term are really important indication for financial markets. the capital markets in china open and currency becomes more floating, it will lead to more inflow capital into china for
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foreign investors, and that could change things significantly. julia: that balance. atrlet: ben emons intellectus partners joining us from l.a. thank you. let's get a check of the bloomberg first word news with mark crumpton. mark: attorney general jeff sessions is defending the trump administration's travel ban as an important tool in fighting terrorism. sessions testified today before the senate judiciary committee. jeff sessions: the presidents executive order is an important step to ensuring that we know who is coming into our country. necessary, order that we are proud to defend. mark: session says he is confident the justice department will prevail in its efforts to defend and enforce the ban. secretary of state rex tillerson says the u.s. and india need to be quote the eastern and western begins for what he terms and international order increasingly
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under strain. tillerson advocates a stronger relationship based on shared goals of security, free trade, and counterterrorism in the indo pacific. quoteo criticized china's provocative actions in the south china sea, which tillerson says directly challenged international law and norms. kenya's presidential vote is a days away, the country's top election official says he cannot guarantee a quote fair and credible election. ahead of the election commission says vote and corruption will again take the process. in august, kenya's supreme court nullified the election in which he was declared the winner. the top kenyan electoral and sent fromned new york that can you quote cannot meet the basic expectations of a credible election. in iraq, a majority of displaced returned toto cook
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their homes africa is forces were pushed out of the disputed city by iraqi forces. many residents were seen driving back to the city with their families and belongings packed in their cars. more than 60,000 people have been displaced in areas around there. 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. julia: coming up, the global oil market is grappling with rising geopolitical risk. i discussed the market with claudio descalzi in just a few moments time. from new york, this is bloomberg. ♪
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julia: this is "bloomberg markets," i'm julia chatterley. scarlet: i'm scarlet fu. julia: activist investor bill ackman pushes for three board seats at the company's annual meeting in three weeks. in the letter to shareholders, adp chief executive officer carlos rodriguez said quote, we have a lot of experience balancing pace and risk, and that maybe is part of the difference of us and pershing square is a lack of appreciation for how much risk there is. we spoke with him earlier today and asked if he and bill ackman just got off on the wrong foot. on, toink we both moved talk what the facts and how we can make adp better. we obviously have a different idea about the pace and risk that involves a moving as quickly and aggressively as bill is suggesting. he said some prior experiences
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with other companies like valeant and j.c. penney where the risk reward ratio was tilted in the wrong direction and we want to make sure they'll make the same mistakes and adp. >> a very different place, we can get into the impact of his position in valeant had and whether or not it made money for shareholders is another question. in your case, he does make some great points about margin improvements. quicker margin improvement. there are risks, but what's wrong with his argument they need to improve margins and there's obvious ways to do it? >> valeant may be different, but in j.c. penney, it was the idea of an aggressive margin improvement. he brought in his own ceo and had his own plan and it didn't work out. >> retail has its own problems. let's concentrate on adp and why that's about argument for adp. >> is about argument because we made progress ourselves and we have a plan to continue to make
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progress. on the last six years, margins have improved. need another 500 basis point improvement over the next three years. he's advocating for a 1200 basis point margin improvements. over the course of six to nine years, we've been able to accomplish the same thing. i think it does come down to a difference of opinion on pace and risk. >> i don't think anyone would dispute you have a fantastic record as the head of the company and shareholders of been quite happy. improvement toe be made quicker, why not make more management and technology quicker? >> we made a lot of advancements in technology. part of what happened is we were contracted by pershing square with an audit. i think bill and pershing square don't have a lot of information or data around the investment that we've been making in technology and the transitions we made, we moved in 3% of our clients to a new cloud technology. i think it's not accurate that
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adp has not been focused on technology. newrought on four directors, including the ceo of paypal. >> at small and medium businesses, everyone is on one network, which would bring up the question, why not then saves and costs in those two businesses until you can get to the other two businesses and make the technology advances? >> we made great progress in the small business division and midmarket division and we have gotten great efficiencies as a result of the improvements in technology. >> no headcount. >> we haven't had reductions in headcount in those businesses and have a lot of improvement in productivity. margins, we disclose probably are double what they were five years ago the small business division. our hope is to continue to do that in other parts of our business that we can see in the technology transformation we have underway. scarlet: that was adp ceo carlos rodriguez speaking on "bloomberg markets." still ahead, the sec may have
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the cure for wall street headache. the details on what may be in the works as the new rules lurk. and the price war brewing over research. from new york, this is bloomberg. ♪
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scarlet: this is "bloomberg markets," i'm scarlet fu. julia: i'm julia chatterley. the sec is looking to give financial firms a break when it comes to regulations. wallet: the agency giving street a reprieve saying they will have to overhaul operations to comply with sweeping european rules. jesse westbrook has been tracking these. it's ok to comply with these rules even though it technically breaks some of the sec's own rules? if you stand alone -- if
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you sell standalone investments, you can be teamed -- deemed an advisor. there was a risk that firms could face a wave of sanctions if they didn't get this reprieve from the sec, and it looks like they're going to get it. scarlet: do we know if it's temporary or permanent? jesse: that's an issue. there are a lot of people that are pushing for it to be temporary. there are major changes going on the market. decades,to see how for wall street has sold everything the client is a single package. trading execution services, research, they provide one-on-one meetings with their analysts. once you start breaking that apart, it's not just going to have impact in europe. people in the u.s. are going to say why aren't i getting what europe is getting? there's an argument for making this temporary so regulators and wall street firms and their
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clients have a chance to evaluate how it's going, and whether we should furlough -- whether we should follow europe's path. julia: this follows months and months of lobbying. will the zipline mutual funds as -- will this apply to mutual funds as well? jesse: it does apply to them in the terms of they are the clients of the wall street banks that are paying for the research and they ultimately are the ones that banks will have to split these services up for. there's also questions about how mutual funds will pay for research once this takes effect. are they going to use their investors money, or will he have to pay out of it out of their own pockets? there's a lot of unresolved issues. scarlet: is this the ideal solution? julia mentioned lobbying, and this is the fruition of that, but is this what they wanted? jesse: this is more or less what
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they wanted. i don't think wall street at this point wants to dramatically overhaul their u.s. operations and start breaking out all these individual services for their u.s. clients as well. if this goes their way, they basically have to comply and breakout standalone research, sell that is a separate service. presumably caney do they have always done, which is bundle everything together, trading, research, etc. julia: clarity for now, we will see where it goes. thet forget to check out bloomberg for a range of solutions for navigating the regulations. you can also catch our show, "financial relations," every weekend. ♪ are you on medicare?
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arkets." i am scarlet fu. investors continue to a likelihood the next fed chair or chairman will be more hawkish. investors are also waiting for signals on china's economic policy as the ongoing party congress ongoing. up,ng on to oil, holding but you can say the rally has been losing momentum. gasoline and desolate supplies to last as refiners are shut. uncertainty swirling at the impact of tensions such as iraq, iran, and the u.s. giant in the crosshairs. >> the world passes largest hedge fund is adding to gain a really's economy. inded by a billionaire, a 26 the dollar bet against any of the oil and gas giants.
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betsng only $310 million against the country's largest utility. here to discuss this and much -- is the ceo great to have you on the show. your comments. they come and go, especially now with our commodity, a long , more hedge fund and creating more volatility. issue.t see any big >> you are not worried about the impact on sentiment? >> that haven't already. nothing happened at all.
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>> why do you think you are being penalized? all, in the range of the other companies, other shares linked to the oil price, , oure more the upstream but small.are good we are a good performer. we jump with the oil. price jump? the oil >> 24% increase, and that was very helpful for us and the industry in general.
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$60 billion. we are investing as an industry at a rate not sufficient to overall production -- reduction. by 2020, we can have a gap between supply and demand. it means we can have a strong step of of the oil price. you aboutto talk iran. you have expressed interest in the oil and gas sector in iran. how has that changed in light of the united states decision to certify the iranian nuclear deal? >> we started in 2001, we don't
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have -- we are analyzing and trying to understand. we are not close to a conclusion. we wait and see what lapin. at the moment, we don't know. weeke qatar ceo said this they would continue even if the united states does not -- steps up in the country. do you think that is brave? -- l: claudio: the plan is not to be brave. they understood it is not to be brave or not. >> are you concerned about falling behind with iran? huge.portunity is
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claudio: that is clear that we have a gun optionality. in the last seven years, $14 billion. we are focused on developing what we have found in an effective way. we are not in a position to go look for everything. we are looking for good stuff. case, a good discovery awaits. >> no plans in the serum the future? claudio: i cannot to you the timing. we are waiting to analyze possible opportunities. we clearly has to look at what had with sanctions. >> if the united states as unilateral sanctions, will that rule it out? they're there from a
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financial point of view, it is not easy. .ithout new sanctions we have to understand unilaterally, i do not know if that can happen. i don't know. see.ve to wait and we're not there. we are winning. libya has managed to increase production. you think that kind of production is sustainable? >> i hope yes for them. talking about oil production. 95% on theoximately production.
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our production remains steady in the last five years. we delivered -- or we -- directly to the domestic market and a powerplant. oil production, for the first been increased and became more stable than before. i am quite confident they can keep this production. >> what about politics? is that the concern for you or cannot hold steady? claudio: there is a concern but
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that is related to the overall situation. i saw some improvement, and i objective. is an unitede talks about libya and not split into different sectors. it is clearly to find a solution. very important. something that is happening much more than before. from an industrial point of to increase the level and be focused on something not concrete but a common goal and development.
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-- move ontoyou u.s. shale. t think we have overestimated the potential of the u.s. shale output? >> i don't think so. billione more than 4 per day. a new this and gas. that was very useful. impacts positive to the environment in the last 10 years, he reduced emission about 20%. also, oil production. thinkmore than what we but it is not just the technical issue in the production. it is also the financial system.
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look at what is impacted by the oil price financially and from an economic point of view. we have the limitation in the rate that is very high. the system is technically very robust. either system can be impacted by other factors. time to talk get about italy, which i am sure you are relieved about. thank you for that. with marka check crumpton. mark: senator olivia -- elizabeth warren is calling for the $74 billion debt of puerto rico. according to politico, the democrat wants every dollar of eight going to puerto rico to help hurricane victims. that wall street vulture funds should not get another
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penny from the islands. theresa may says one thing is for certain. lead the eu in 2019. the government is ready for either a deal or no deal. >> i can confirm that what we are doing is working for the best possible deal, united kingdom. irresponsible for the government to not prepare for all scenarios and that is what we are doing. >> they're divided on number of issues including how much the to leave.d pay a gathering of the communist -- heexpected to cement laid out a roadmap to turn china in 20 leading global power by the middle of the century. performs at state-owned industries. he also promised to open the
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doors to foreign businesses. pakistan's military said guard posts along the border with afghanistan would help prevent militants on both sides of the border. earlier this year despite objections by afghanistan. roger goodell said today he believes all players, in his words, should stand for the national anthem. the comments came at a press conference here in new york. he did not commit to a ruling stating that players must stand for the anthem. is important to understand why some players are protesting and deal with the underlying issues behind the protests. 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. scarlet: speaking of the nfl, the leak getting --
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the latest on this developing story. this is bloomberg. ♪
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scarlet: d6 is a former chair who will become the honorary chairman and continue to serve as a company director as well as a member of the strategic committee of the board. general electric teaming up with devices. mobile
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designed for managing machinery and power plants. software and services. it major television networks have signed up for a new tracking service for video-on-demand services like netflix. it gives studios, producers, and thets better tools, producing company plans to spend up to $8 billion on content next year. the data is lot and does not include international viewers. 'sre than half of the network customer-based parent that is your business flash up date. stock of thethe hour. higher today, more than two months. abigail doolittle is tracking this. what is driving it? >> it has to do with up your alley. partnership, ticketmaster unit, first fully automated digital taking -- ticketing.
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shares are puffing higher today. it is a good question because it is not that they its liver. if we hop in and take a look, the function on the bloomberg, we will see here that revenue for 2016, 69%. >> they had a multiple million-dollar deal with madonna. >> that was the strategy. we were talking about the fact smart,is company was so years ago, they went around the world by major concert venues along with promoters. if you want to live music, and the only way is by performing come you have got to go through life nation. 22% from sports ticketing. issue because
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these are the things that people are willing to pair up for. what does it mean in terms of how tractive it is for these investors? recently about the peel -- >> operating income around, operating income below negative. from a momentum perspective, again if you want to be involved and as an investor, you want to invest, this chart tells the story. it is the underway to invest in music. g #btv 496. i do not see that it is too much that you will have the stock above the 200 day moving average . long-term bulls are so bullish that the 50 day moving average is above the moving average. see the near term buying
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support, they are not letting this stock drop. again short-term , if you but long-term are investing in a stock. >> the music generation -- that is an interesting point for sure. long people want to bring -- been concerts? we are seeing motorcycles, fast -- millennials go to concerts. >> the experience cannot be replicated. >> thank you very much, abigail. business nohe movie
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doubt struggles. hisl confident in portfolio, a superhero film in the coming months could pack a punch. we are discussing the details next. ♪
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scarlet: after the worst summer for hollywood in a decade, disney ceo bob iger has high hopes for fall releases, including "for" which comes out this weekend. she is excited. you are so confident about a box office turnaround. joining us is bloomberg's l.a. bureau chief. he is confident because disney's movies always do well. >> not always. some disappointments this year.
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of thest performing five, those movies, cars 3 another anticipated films did not do well. it looks like thor and his could save the movie business in the fourth quarter here. it will be a sequel that looks like it will perform the previous ones and after that, disney has another pixar movie and then star wars in december. the summer we have reported on so much this .ear gets at least back to even >> are you not thinking that this will turn around? you look at amc and recall and 22%,of these guys balance 69 percent, respectively. so it has been a tough year.
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>> fewer people have been going. tickets are down 5%. on wall street, people are afraid people will spend a lot more time watching netflix at home and not going to theaters. also a cloud of her head about whether the studios will offer, you pay toy five dollars and you get it a few weeks after the holy -- release. >> i would sign up for that. >> no kidding. speaking of clouds in the studios, harvey weinstein. more emerges about what he has decades.g in the last how is that changing the sentiment and hollywood especially as you can europe for fall, not a great summer and not a great couple of months for the >> it has been a huge story.
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it is taking up all the facets of the business. you see rip debt for a price getting fired from amazon. i'm sure a lot of people are nervous who have an accused of this in the past. it is a major cleanup of a long in festering problem hollywood. shows and movies are getting canceled. hopefully, it is all for the good. >> is it a distraction? are you hear them talking about this rather than projects they are planning to work on? >> i played tennis this weekend from a guy named harvey trying to clear his name. hopefully, it is all for the good. literally, everybody is talking about this story. it is a sea change in the entertainment industry and it will continue for quite some time. >> i do not think we have
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necessarily calibrated the response. thatere is a lot more could be said, a lot more people with stories to tell. julia: not just about this example. scarlet: thank you, chris, joining us from l.a. and taking the temperature in los angeles. >> coming up, president trump wants the bill on tax reform. the latest from republicans and democrats. this is bloomberg. ♪ retail.
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under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store
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near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. julia: 8:00 p.m. in london. i am julie chatterley. scarlet: i am scarlet fu. welcome to bloomberg markets. ♪
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julia: we're live at bloomberg world headquarters in new york for the next hour. here are the top stories we're covering from the bloomberg and around the world. president drop -- donald trump at into his plans, reaching across the aisle in a part -- bipartisan effort this year. on the other hand, mixed messages on the agenda. the bipartisann support justd to yesterday. the automaker plans -- self driving cars and ridesharing and what that says about the auto industry. we will be exploring ahead. let's get a check on markets with julie hyman. records once again
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particularly for the dow, the performer of the day due in large part to earnings. we have dow members today and yesterday and continued reaction. the s&p and the nasdaq holding onto gains at the moment the nasdaq has flirted with negatives earlier in the session and the s&p at a record as well. i thought it was a good time hitting record after record and as we approach the anniversary the threeonday, for major averages. the nasdaq has been the performer over the length of the bull market. streak.so on a current 250 trading days. the s&p in the middle, followed by the dow. year too flip that to date. you have the returns that are slightly more tight. the nasdaq picked up a little
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more than 30%. we have seen the dow catching up 30%. as for what is leading to the s&p 500, ibm coming out with a forecasts with sales that could increase as much as 1.5%. that is not something we have heard for quite some time. the shares are getting a big boost, the biggest reaction to earnings we have seen going on since 2009. we're watching the insurance company for $2.5 billion including debt. a new product will allow clients to track viewership on streaming services. it looks like traders are happy about that. finally, as mentioned in a note, top analysts said it looks
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attractive versus one of its competitors. companies out with earnings after the close of trading. we largely see positive action there here and american express , already released some of its numbers for traffic and revenue projections. it might not be quite as much of a surprise. we will watch for reaction. scarlet: thank you. a lot of developments today. we are getting headlines on health care from white house --ss secretary had -- seri sarah huckabee sanders, she said the president does not port the bill in its current form. we are joined now to help clarify what is going on. , the president signed an executive order to halt payments related to obamacare and this week, senator alexander and murray reached changes the white house called a short-term
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solution good for 1-2 years. he was fully aware of this and now we hear that he does not support it. what is going on? >> it has been difficult to figure out where the white house stands on the legislation and how involved they were in its development. politically, i do not think this is good for them. democrats can go to voters and say we worked with a republican on a bill that would have made obamacare better but the president blocked it. know how that will work up.them when premiums go >> it is such a pain. both sides, you can understand struggling.ld be republicans basically said they promised to kill obamacare and democrats accused them of sabotage. offboth sides, there were -- awkward issues here that think susan collins of maine said best when she said she
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worries the rhetoric being a bailout for insurers here, it is a real problem for republicans. trump hasnald recognized the issue supporting the deal given what he already said about the bailout. >> i think that is right. forlanguage is harmful republican support and i did not think it helped the bill and chuck schumer said yesterday they were anti-sabotage measures put in the legislation. chuck schumer sabotage donald -- donald trump's -- of the health care system. the rhetoric is not helping make a deal. it is not surprising republicans and democrats still cannot bridge the divide over bob -- over obamacare. was divisive from the start. every subsequent -- subsequent election has made it more so.
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these entrench sides work together. >> losing track of the sabotage of the seven sabotaging here, how do we pull it back from yet another brink? there will beink a fixed before open enrollment begins in two weeks, november 1, for 2018 plants. folks have to live with whatever prices they are looking at now. year, it will probably all the and of what happens in midterm elections, whether publicans can win a larger majority in the senate or whether democrats run against control.ump and take >> the president says he does not support it in its current form. does the senate go ahead anyway and try to move it on to the house or do they start from square one? >> i dart -- i doubt the bill will move forward.
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i do nothing republican leadership in the senate will advance without president support. said he does not supported in the house. i do not know if denver that's would be willing to consider it in the bill. we have heard talk of a want the and the company mandate, a requirement that most companies carry insurance, of the law. i do not know if democrats can go that far. scarlet: you cannot say the -- they unite -- >> trying to parse this anyway. what does it mean for tax reform in terms of timing and the amount of energy going into if it pushes the
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timetable back even further? >> tax reform is the key. they are not the players on texas. it is an entirely different committee. congress can do more the one thing at a time. these days it seems like they cannot do one thing at a time. if they want to, they can multitask. ii do not think this particulary helps tax reform especially for publicans could get thrown members on board with a bill. you saw today the president had the senate finance committee including democrats and the white house to talk about a tax overhaul and they said nice things afterwards about trying for a bipartisan deal. i do not give high odds but they are at least giving it a stab, i suppose. >> they have not proven that they can. >> not on board with a bill on anything. headlinesheck on the
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this afternoon with mark crumpton. the rest do you think of us feel? you seem exist rated. he will not discuss confidential conversations he had with president trump. defined for the senate judiciary committee, sessions said the president is entitled to have private conversations with cabinet secretaries. members of the committee told sessions they intend to press among conversations with the president, particularly about the firing of james comey. today incron confirmed france, lift in november 1. after the paris attacks that killed 130 people. president macron praised
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security forces for preventing 13here -- low-tech attacks followed a series of people driving vehicles into crowds. security forces for preventing 13 attack is beginning of the year. >> we have to accept that the terror list -- the terrorists change and adapt their methods. we need to be ready to adapt response. mark: the european commission proposes an insurance -- a saysiance with eu laws and are aimed at protecting major gatherings like sporting events and concerts. are aimed at protecting major gatherings like sporting events and concerts. angela merkel begins talks on uniting both parties into a coalition. the chancellor met separately with the pro-market free democratic party about cabinet posts and policy, a combination not tested at the national level in germany. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries.
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scarlet: coming up, general carrs push to driverless technology. they want all the capabilities under one roof hear the latest on their efforts. from new york, this is bloomberg. ♪
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julia: it is time now for a look at some of the biggest business stories in the news now. george soros but -- backs on core capitalist through september of this year here that is according to a person with knowledge of the matter says the hedge funds made the leap by betting on betting market debt securities. focuses onllion fund
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developing markets and house the head of other macro funds, producing returns this year. traveling to the lowest since after -- the release of a star wars title projected to feel growth. -- the release of9% growth of the fiscal year 2019 when it was originally scheduled for release. a car at itsnveil week.show next it says it offers about 60% more driving range minutes predecessors. manufacturing continues to champion -- even as other manufacturers gravitate to other technology. week. it saysfrom around 2200 and thre years. that is your business flash up date.
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scarlet: reportedly in talks to bring self driving cars tuber customers next year. was told yesterday that getting all the capabilities under one roof is a very for the comp me. >> we believe we have an and that isapproach giving us the ability to move at speed and we feel we have an obligation to bring the technology to commercial itloyment through the impact could make on -- >> more on that, in san francisco and bloomberg's auto reporter in detroit. let me start with you. do the established automakers have the upper hand as asserted or is that is issuing now? classic could be wishful thinking but he makes a good
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argument. it helps when you do not have to rely on someone else and you can own the pieces you need for the entire value chain of the business model. the vid will, but it is challenging. you cannot by any stretch rollout big tech companies. they have a lot of really smart people. there are also interesting kinds of groups and companies that come together and try to compete with the gm's and the googles of the world. fiat chrysler, working with intel. a lot of firepower there. >> new entrants are coming in all the time. they had a $500 million a and in .he company, lift >> no one really knows what the landscape will look like in 10 or 15 years. it is really a way of hedging your bets in terms of expense
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and a very expensive research and development, but also, one after the fails and the other might succeed. behold bunch of partnerships, about four or five now. a lot of hands in a lot of different pockets. julia: do you believe as scarlet pointed out, the line between gm ok with everyone else, something that could be so pivotal when you get it right going forward? >> gm has their own captive unit as well. they will complete -- create their own trooper and left. the has been invested in partnership with google, and then is invested in google. i do not think we can what wasly read into
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initially planned for jam on the road through lift. -- lyft. it is incredibly complex. i recommend going to our website here and we did a graphic that hopefully sheds some light. important to big automakers? >> they want to make sure they are relevant. new 3.0 really becomes a business, they want to be sure they are relevant in that they have an important role. we heard last night about foxconn starting a fund. it is ironic because all of the automakers as long as the talks have gone on, they say we do not want to be the foxconn of the auto industry. , so want to be the apple they really do not want to just
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be put in the box of being those who put parts together for someone else's brand or someone else to control the data. scarlet: the mercy of the other brand. when it comes to the effort to team up, this is really about scarlet: the mercy in china specifically. >> china is the in china specifically. >> china is the big -- the biggest automotive market in the world. china of course, a lot of car companies and they do not have what some of the american or european ones have, big status symbols in china. local carmakers would be have the and even google or whatever it might be. race andhorse in the insuring that is on the table when those discussions come up is what they are trying to do here. get your insight.
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still ahead, options insight, and election is coming up this weekend. breaking out to multi-decade highs. breaking out to multi-decade highs. today's trade is looking at how to join the rally by trading japanese -- from new york, this is bloomberg. ♪
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mark: the president spoke today during a white house meeting with a group of senators. trump: the timing is right. ave had people on both sides thisf people are liking very much and we will have tremendous support. secretary of state west -- , andillerson -- tillerson international order increasingly under strain. under strain. free trade and counterterrorism. the u.s. wants to strengthen india's military capabilities. tillerson also criticize provocative actions in the south china sea, which he said directly challenges international law and norms. in spain, the government will decide whether to

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