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tv   Bloomberg Markets Americas  Bloomberg  October 23, 2017 12:00pm-1:00pm EDT

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from bloomberg world headquarters in new york city, here are the top stories on the bloomberg and around the world we are following over the next city minutes -- 60 minutes. the wheels are in motion on capitol hill to overhaul the tax over but the debate details threatens to derail the effort. the search for the next fed chair continues. powell perhaps favored, president trump making comments to that effect, not ruling out the possibility of granting janet yellen another term. venezuela could be inching toward default. the country is late on $350 million of interest payments, and now it's government run oil paymentns a massive which is due on friday.
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all that to come. julie hyman is with us. we are halfway into the trading day. julie: we earlier saw all three major averages touch records, but the s&p and nasdaq have come down, a pause after this run we have seen for u.s. stocks, with each of the five sessions last week record-setting for the major averages. what's dragging them down today? you can probably guess from the nasdaq's underperformance, it is the big cap tech stocks. .he so-called fang -- fang's. there were some comments by the french finance minister about a tax on internet companies. it could just be a pullback after the recent gains we have seen from these companies. they are heavily weighted, so it has an effect. we are watching media companies. there was a story in "the washington post" that the government is going to be
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drastically cutting spending on advertising for healthcare.gov, related to the aca, and that that could have an effect on tv advertising budgets. , and 21st century fox are in focus after "the new york times" reported there was a $32 million settlement paid out to a bill o'reilly sexual-harassment accuser and that he was kept on at the network after that occurred. so, the back and forth over that continues as those shares fall by 2%. outside of stocks, we continue to watch the bond market, where we have been seeing some jockeying of yields based on all of this federal reserve chair speculation. what we are seeing speculation-wise as well is that there is a lot of shorting now against five-year treasury futures. we talked earlier in the day about the u.s. dollar, that shorts have fallen, but not so for the five-year note. between what the fed's track is already right now, in terms of the expectations that it's going to raise rates in december and
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on into next year, and also this speculation about who could be the next to head the central bank, this is the action we are seeing and the speculation we are seeing that yields are going to push higher. vonnie: julie hyman, thank you for that. a major week in earnings here in the u.s. the euro slipping on tensions in spain. and a victory for prime minister abe in japan. for more on all these global market movements, let's bring in dennis debusschere, head of portfolio strategy for evercore isi. place in the world that looks most at risk right now for equity? >> the place we are most at risk, to be candid, i don't think there is a ton of risk out there. vonnie: place in the world that looks most at risk right now for equity? really? dennis: one of the things we've been writing about is that conditions very much matter. as long as we are in a low rate,
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low inflation and low economic volatility regime and people believe the next recession will be #never whatever the kids say these days -- as long as people believe that, economic volatility is likely to be very low. volatility across asset classes is likely to be low. the risk associated with future expected cash returns is significantly more attractive in stocks relative to bonds. if those conditions shift, then everything unravels quickly and all asset classes are overvalued, not unlike the housing bubble. vonnie: we all know that can happen on a dime. dennis: it shocking that no one seems to be pricing any of that in, but i cannot shout into the wind all day long that you should be. there is no risk out there as long as people believe there is no risk out there. a shock could happen at any time. n'm not a next her at -- not a expert on the north korean military, but if one of those missiles manages to make it to japan, that's --
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it does not seem like recession is imminent. it does not seem like we have a large inflation risk. so, what would change the mindset? what would change the behavior? it's hard for me to be negative, other than to say that people are not priced for a shock risk. vonnie: take a look at this on the bloomberg. we are not seeing traders see the same number of interest rate increases as the fed sees right now. if anything, we are not going to get a more dovish fed chair. it will be equally dovish or less dovish. dennis: the biggest risk is someone like taylor coming on board and, i guess, cutting out that theyif you will, will be hypersensitive to any of the asset prices. taylor may not actually evolve that way, but people seem to think he will. if that happens, that would kind of undercut the whatever it takes backdrop and start to change this frequent put forever. in which case, risk premiums
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should be higher, definitely. vonnie: what about if the ecb does finally make a move, which it will on thursday? that in itself may not cause any kind of tantrums, but what about when we get out six months to nine months? dennis: until we see inflation, i'm not sure it's going to cause a tantrum. they will be reducing the balance sheet -- tapering, but we will not be raising rates for another two years. so, you know, i just don't see why that should be a sock -- shock to the system. vonnie: what about asia and japan? abe was clearly reelected with great ferocity over the weekend. is japan a potential place for a bit of a pullback? dennis: if economic growth is so strong within japan that they can't continue that yield
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control policy, then that would be a risk, but it doesn't appear that's going to be the case. economic growth is strong. inflation is low. the yen is likely headed lower. therefore japan risk assets should probably be headed higher. vonnie: what are your clients calling you out -- up about? dennis: when is the bubble going to burst? and i'm saying, until the conditions change, it's not going to happen. vonnie: where will we start seeing it first? dennis: inflation. a shock higher in the yield curve. the first instances of inflation will be very -- feel very euphoric, in a sense. the deflation monster has been conquered, but once it becomes more sticky, then federal banks will be constrained and arrest ing asset price declines. it is not significantly imminent right now. clientsare you telling
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it's fine to be in risk your portfolio's? -- in riskier portfolios? dennis: my message to clients is to be numeral. -- nimble. vonnie: what's nimble that's not short-term treasuries? dennis: short-term stocks. vonnie: it sounds on the one hand like you are terrified and the other like you are completely calm. dennis: that's probably a good way to describe it. vonnie: thank you very much for your insight, dennis debusschere, head of portfolio strategy for evercore isi. let's check in on bloomberg's "first word news." mark c.: president duterte has been criticized for a bloody crackdown on drug dealers. he threatened to cut ties with the u.s. and u.n. -- and
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european union when their ambassadors complained. dalia warns it would be a mistake for the fed to focus on average statistics -- dalio warns it would be a mistake for the fed to focus on average statistics. it could lead to dangerous miscalculations by policymakers. in the u k, prime minister theresa may now wants an all in one brexit package. the prime minister would like to -- bundle talks into trade negotiations. businesses want to know as soon as possible that current business rules will stay unchanged for two years after brexit day in 2019. japanese prime minister shinzo abe down -- gambled on calling early elections and won. they have retained their 2/3 majority in the lower hostile -- house.
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that boost his chances of remaining as leader of the liberal party, which could make him japan's longest serving leader. the nikkei 225 rose for a record 15th day in a row. the white house said president trump spoke iphone yesterday -- spoke by phone yesterday with prime minister abe. global news, 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. vonnie? vonnie: coming up, tax reform momentum continues to gather pace. we will bring you the latest of elements. this is bloomberg. ♪ -- latest developments. this is bloomberg. ♪
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vonnie: this is bloomberg markets. i'm vonnie quinn. president trump took to twitter, dispelling reports that the republican tax reform plan would change how people could save for retirement. the president tweeted, "there will be no change to your 401(k). this has always been a great and popular middle-class tax break that works, and it stays." joining us is a bloomberg reporter. another wrinkle in the plan, justin, for quick's tax reform -- quick tax reform? justin: the problem or come but -- problem republicans are running into, while they are abl cuttingral support for taxes, paying for it is different. earlier in the month, we heard a lot about the state and local taxes, but that has garnered big
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resistance from places like new york connecticut, and new jersey. now there is a report in the new york times that the amount that workers would be able to put in their 401(k)'s could be limited down to $2400 per year from the $18,000 they currently can. we heard the president should that down today. -- the president shoot that down today. republicans need to find a way to pay for these tax cuts, but there is nothing that is politically popular that they can turn to. vonnie: exactly. state and local deductions, also part of this sticking point, a group of sticking points. who emerges to make a deal here? the president can only advise. he cannot say yes or no. but this is his plan, right? republicans on capitol hill are the ones tasked with writing out what these deals are going to be. the good news for the president
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is these are people who are used to negotiating with lawmakers, used to making the sorts of trade-offs they need to get things across the finish line. republicans don't have the best history with that. they were blocked on their attempts to repeal and replace obamacare. this is going to be a real test of the leadership of both the house and senate. one thing republicans have been consistently united on is tax reform. so, it will be a real test to see whether they can do that this time. vonnie: the house freedom caucus seems to be gung ho about this. they don't seem to mind how much the debt ceiling gets raised. but there are republicans who are vehemently opposed to it. will they end up killing it? justin: if they don't kill it, what we might see is a kind of scaled-back version. rather than a sweeping overhaul of the tax code, we could see more targeted, small cuts of the corporate tax rate, even smaller tweaks to the individual rate.
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, if republicans particularly in the senate do drive a hard line on having something that doesn't explode the deficit, i would expect maybe a smaller package to emerge. how politically viable that will be is a question we won't know until we see the details. vonnie: who are the republicans to watch when it comes to things like pay for? justin: bob corker has been really vocal about this. he is somebody who is retiring, certainly has been openly critical of president trump before, so does not feel an allegiance to him. watch him. watch people like john mccain, who, although they are loyal republicans, are not necessarily lockstep with the white house and could play a big role here. vonnie: if there were to be changes to the 401(k) retirement plan, what would that mean in terms of additional revenue? if it did go down from the $18,000 to something in the region of $2500, what would that end up fighting? justin -- end up providing?
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justin: would we see people invest less toward their retirement account because they are not getting that tax break, or with people maintain their current levels? we could see hundreds of millions of dollars that would go toward the federal government. it's a real push and pull. there are also a lot of questions about the individual tax rate. they are working through that right now, whether these tax cuts would affect all income or just income under $1 million. that's a big controversy that is playing out in these tax rating committees. they are trying to figure out how to strike the balance so that it doesn't explode the deficit. pave the way to get tax reform legislation. i want to talk about a story you reported about. the president will meet with the perhapsne president and russian president vladimir putin during a 12-day trip to asia and hawaii in november. why meet officially with rodrigo
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duterte? justin: the president is attending a summit in the philippines, and it is customary for the u.s. president to meet with the host nation in a bilateral summit, but this is a really complicated relationship. there has been a lot of controversy over the extrajudicial killings as part of the drug war going on in the philippines. president obama, when we were in asia last year, ended up canceling his planned meeting with duterte, citing some of the more outrageous comments the filipino president had made, including calling him a pretty vicious epithet. president trump also likes to be a little contradictory, likes to go places where president obama refused to. we know from a leaked phone conversation that was in "the washington post" between du terte and trump that trump has praised his efforts to combat
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drugs and drug violence in the philippines, so he may not be as committed to those human rights concerns as past administrations. vonnie: our thanks to justin sink, doing some great reporting for us. i want to point out that, right now, the president is meeting with the prime minister of singapore. he is talking about signing contracts for boeing planes. he also says he is very close on a fed chair decision. we will tell you more about that as it comes. time now for the "bloomberg business flash," a look at some of the biggest business stories in the news right now. the hartford will buy aetna's group life and disability. $1.5 billion is the price. shares fell by the most in more than a year earlier today. verizon is selling nearly $5 billion of notes in euro and sterling to refinance old debt,
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according to a person familiar with the matter. that sale includes maturities as long as 20 years. u.s. corporate euro bond sales are nearing a record pace as central bank easing holds down borrowing costs. maybe the grinch does steal christmas. the eu's overhaul of financial services rules takes effect january, leading for late nights -- to late nights for workers. the head of currency trading at deutsche asset management warns it could ruin some people's christmases. that's your latest. once again, i want to point out the president is meeting with the prime minister of singapore right now. he had some comments for example,, saying, for that he is very close on a fed chair decision. before we get to pictures of that event, let's update you on
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markets. not too much movement, at least on the face of things. the dow jones industrial average up about nine points. the s&p 500 is down 1.5 points. the nasdaq is down 0.2%. it's a big week for earnings, especially technology earnings, which will come towards the end of the week. let me tell you about some currencies. dollar-mexican peso is back above 19. a weaker mexican peso by about 0.5%. that is impacting currencies like the yen, which is weaker at 113.67. does have something to do with that as well. the 10 year yield at 2.36% here in the u.s. back with more. this is bloomberg. ♪
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mark: president trump meeting
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with the singapore prime minister right now. vonnie: president trump meeting with the singapore prime minister right now. he says he is close to a fed chair decision. he says singapore will sign a contract for boeing planes. announcing something a little business noteworthy there. trump says singapore will sign a contract for boeing planes and that he is very close on a fed chair decision. all right. has loomedof default over venezuela since the collapse of oil prices in mid-2014. the government run oil and natural gas company owns a payment of $985 million at the end of this week and another $1.2 billion six days after that. president maduro is determined to meet all foreign bond payments, but it's proving a logistical nightmare for the nation increasingly isolated by
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u.s. sanctions. we are joined by a bloomberg news reporter. are we really just days away from actual default, where creditors get zero on the dollar? >> we could be. i'm if they would get zero on the dollar, but if they decided to accelerate because of a technical default, let's be clear, what would happen most likely is that the government would trip a wire. they have no grace period. it could essentially trip the wire for triggering cds. vonnie: let's go to the president of the united states. president trump: one of the things we will be doing in a signingriod of time is together a very large contract where singapore is buying billions of dollars worth of airplanes from boeing that will be made in our country, so that's jobs, and you are also buying the best plane, by the way, so that's very good. i want to thank prime minister lee.
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thank you very much. prime minister lee: thank you very much. happy to be here at a time when our relations are prospering. we look forward to taking them deeper and strengthening them in years to come, starting with this administration. president trump: that's very good. i think it will never be stronger. i will be going over to that part of the world in two weeks, stopping in numerous countries including japan, south korea, china, vietnam, and probably the philippines also, so it will be a very busy 10 or 11 days. a veryinister lee: important trip. we look forward to meeting you and hearing your message. president trump: thank you, everybody. thank you. thank you very much. thank you. vonnie: that was the president of the united states there in a
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meeting with singapore's prime minister. they are going to have a bilateral announcement on buying boeing planes. also close to picking a fed chair. let's get back to our conversation on venezuela, where we may see a technical default this week. repeat a little bit of what you were saying. how close are we to technical default? ania: they are due to make amortization payment of almost $1 billion, which is not a really huge number for venezuela, but now it seems like is, becauselike it they have had trouble making even the smallest payments in the last couple weeks. they don't have a grace period. is, do they trip the wire and do they trigger a technical default?
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do they incite creditors to come together and demand acceleration of their payments? that's what to be seen if that occurs. vonnie: what happens when a country has no money? it's been run into the ground. katia: it has no money. also, it is sanctioned. there would be no recourse in the immediate future. as long as the regime is in place, it's unlikely sanctions would be scaled back. those sanctions, pretty much specifically prohibit a restructuring negotiation. they can't just come to the table with the current leaders of venezuela and figure out a bond repayment schedule. that's not what the u.s. government wants right now. vonnie: yet they have been able to pay back some. how have they managed? katia: it's like scraping the barrel tactics. they have completely driven reserves down to $10 billion. money in, money out. they have restructured a lot of their debt with china and with
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russia, who have been there bailout, their -- their bailout, their lender of last resort so far. they have also engaged in some pretty seedy operations, we're a state entity sold some of the bonds they had on their own -- wherein a state entity sold some of the bonds they had on their own balance sheet at a discount as a way to bring money in. and they have been cutting imports dramatically. that's what's had the humanitarian crisis affect. vonnie: how are people doing down there? katia: not so well. in order to have payments they can make for bond payments and other payments they have due, they have basically cut all their imports. the thing is that nobody knows how much they have cut the imports by. these are all estimates. you have to look at their trade partners and backtrack the numbers ou we don'tt. really know what they had -- the numbers out. we don't really know what they have cut. it's a horrible situation. vonnie: we will see on friday,
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the due date for venezuela. let's get back to the first word with mark crumpton. mark: john paul younger says that talks are on hold until the rice of the citizens are ensured that a financial's -- settlement is reached. he discussed the matter with theresa may last week. he brushed aside media reports desperate for eu help. at fort bragg, bowe bergdahl goes before a military judge who will decide if he gets life in prison for walking off his post in afghanistan. he pled guilty to desertion and misbehavior before the enemy. the hearing is expected to take several days. "the new york times" reports that the cia is expanding secret operations in afghanistan, of their the move
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increase role in the trump counterterrorism policy. cia officers and contractors are joining with afghan forces to hunt and kill the tele-man. --spain, m specialists tilane and --cat separatists taking over government holdings. lawmakers could meet thursday to vote to declare independence. global news, 20 four hours per day, powered by more than 2700 in 120ists and analysts countries. i'm mark crumpton, this is bloomberg. mark, thanknie: you. we just heard the president say moments ago that he is very, very close to a fed reserve pick. on friday, janet yellen defended her legacy and highlighted some of her achievements. president trump over the weekend
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weighing his options, telling fox that janet yellen is still under consideration. >> most people are saying that it is down to two, mr. taylor and mr. powell. i also met with janet yellen, who i like a lot, i really like her a lot. i have three people and looking at and there are a couple of others. i would say that i will make my decision very shortly. vonnie: for more, let's bring in bloomberg's peter coy and bloomberg intelligence senior .conomist, you lena our people trading on a potential new fed chair or are they waiting to see? it feels like even though everyone keeps saying that it is a big fed board, the chair only has a little bit of power. the face of the fed would change your medically. >> absolutely. it really matters who becomes the next fed chair. the fomc is becoming much more hawkish next year, no matter how
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you look at it, actually. bee hawkish presidents will voting next year. if you have a hawkish fed chair on top of that, that would be interesting to see. matters andt really you have to choose. vonnie: if he cannot make a decision, if it is becoming too , how does thatim work? does he put powell as chair? vice chair? is there precedent for having a cochair? i don't think so. you really have to be traditional with that thing. the taylor powell combination, whatever it is, could be problematic. gain a vicenally chair, who is supposed to back up the chair. that is how it has worked over the years.
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with the new vetting, who knows what's going to happen. -- vonnie: right. speaking of priorities, peter, let's talk about what ray dalio had to say about the meeting over american economies. we were getting a lot of announcements about this over the weekend. they said they were starting a whole new venture to look at the problems of the market economy. average statistics, camouflaging what's happening in the economy, dangerousd lead to miscalculations by policymakers. talking about 60% versus 40%. you make policy for the 50%, 40%, or the average? peter: it's a great question. the fed can't just look at the 40%, whose wealth is 10 times as great as the bottom 60% of from
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a sixfold increase in the past. you need to look at the bottom. i think that makes a lot of sense. the problem is the federal reserve basically had one ,nstrument, monetary policy tightening and loosening. it's hard to influence micro kind of economic stuff, like how much individuals earn, through such a crude tool. a lot of people would say that we sympathize with you, ray, but maybe interest-rate policy is not the way to do it. vonnie: well, is there another way to do it? bernanke would say that he tried his hardest and you have to bring up the aggregate. inflation should do it, if you ever get it. peter: the argument from someone like john taylor would be -- you try to help the people at the -- you try to hope a good rising tide will lift all boats on the monetary side and then you use the fiscal policy, for example.
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if you wanted to raise taxes on the rich and provide more spending for the poor, that would be, if that were your goal, to do it that way through fiscal policy rather than through keeping interest rates artificially low, which could result in high inflation for everybody. vonnie: i don't want to say the president is milking this, that might sound like an opinion, but given that this is taking a while and he's teasing people with who we is going to pick, is there any possibility that -- they shouldn't be influenced, they shouldn't be i imagine, but they seem interested. yelena: one area the president-elect to have an influence is regulation. it's actually very dangerous if the focus shifts only to regulation. and a little bit away from monetary policy. monetary policy still matters a lot. at this point of an economic cycle, we need to think about
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the next possible recession and how we are going to deal with it . what tools do we have? if the focus completely shifts away from that and only to the regulation or deregulation in that sense, that could be dangerous, but i think that that is one area i think where he probably wants to influence. vonnie: given that he's extraordinarily happy with the stock market and the economy, why not just let janet yellen keep going? you think you will? seems like that would be a reasonable choice. the people that criticize her, sometimes it's more on the regulatory side and they say that -- at columbia they said for that alone, for her regulatory instincts alone he would dump her and replace her with a sort of deregulatory person. that could be a criteria for trump. another one might just be that he wants his own person in
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there. he wants to put his stamp on the federal reserve. i think that's a lot of what's going on here. all right. , thankyelena shulyatyeva you. coming up, how is apple faring against the competition amid major supply delays? this is bloomberg. ♪
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"bloombergs is markets." i'm vonnie quinn. let's turn now to our stock of the hour. soaring today, shares of seagate technology.
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they put up a strong fiscal first quarter. abigail doolittle is here with us now with what stood out. abigail: they beat 12% on earnings, putting up $2.46 million, not small numbers. some of this could have been a short squeeze, vonnie. some investors who had been bearish, thinking it's enough reason to get out of it. the, a turnaround from previous quarter. the last quarter was really a disaster. if we hop into the bloomberg, we can see how this looks in terms of the turnaround essential. they not only missed it numbers in july, they replace of the old ceo and cut 600 jobs. between that report and the current report, shares basically stuck in this range, but now it's much better than expected as a report with shares soaring. however, i did spoke -- speak to someone at bloomberg intelligence who is not legally convinced. he thinks that the share counts
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were due to cross cutting and that the beat came from their enterprise business, which was apparently driven by discounted pricing, so he's not convinced that is going to last. vonnie: but some are convinced that there is a turnaround underway. abigail: the price action today will tell, time will tell. they have an additional project, called the hammer, heat assisted magnetic recorder that western digital does not have. that could be a big reason. plus a turnaround for the shares , partially as a value story. if we hop back into the bloomberg to take a look at the relative valuation, even after today's huge moves, trading at an 11% discount, trading at an 18% discount basis with some value investors that like to look at that metric, the blue dots suggest it's a value name on most metrics trading toward the historical lows.
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the reason for value investors these sharesoop up and the reason to really believe a turnaround could be underway is to watch the short interest to see if it comes down. all right, we will do that. apple may have lost its supply chain mojo. they have recently suffered supply delays with competitors on their tails. how can the company maintain its reputation as the model? joining us now from san coversco, alex webb, who all things apple. what is different this time, alex? feels like there is always a scare with suppliers somewhere when it comes to apple. it's the particular iterations of the iphone. the iphone 7, one of the colors was in slightly short supply. problems withe the watch. what we are seeing here is the flagship product of the new product lineup, the iphone x,
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entering some difficulties. stocks point possibly at the suggestion that there are cracked's appearing in their very successful supply chain model. vonnie: they have been trying to take more and more things in-house. is that part of the problem or is it nothing to do with it? alex: i don't know if it has anything to do with that. the difference here, we have seen mobile phones and smart phones, it's hard now to come up with a really blockbuster innovation. the advances are iterative. touch id was a big one a few years ago. force touch, the ability to push a phone hard and get different actions. screens, id and oled the two headline innovations in the new iphone, they were possibly pushing the boundaries of it too far and supplies were not quite up to scratch, not quite able to deliver. vonnie: interesting.
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there is the idea that apple might not be as completely fluid as possible for something like the 10. we know that there wasn't as much demand for the eight that apple was hoping for. it could bode well or in. very hard to parse the tea leaves on this. we know that the iphone eight is seen as not eating as -- the demand has not been as great as suggested, but it suggests that there is pent-up demand for the iphone x. at&t said that the upgrade rate than00,000 customers fewer the year before. if the upgrade rate is lower, they might have been going for something else, suggesting they are waiting for the iphone x. is whetherstion now apple will be able to meet the demand with supply or if it will carry over into the first or second calendar quarter of next year. vonnie: people might not be as
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desperate, happy to wait a few months. we may not see the same kinds of results as we did before. if apple does surprise and there is more demand, do we see a big pop in the shares? alex: at the moment, apple investors are very wary, a tetchy.it catchy -- there are massive queues on launch day, it could suggest that the brand a strong but we won't really know until apple makes its predictions for the next quarter on november the second. that's when they are going to have their earnings next week in november 3 is when the iphone x goes on sale. crucial days for apple. webb, thank you for joining us. right now, apple is slightly up in today's trading. time for a look at some of the biggest bloomberg business stories in the news right now. mark johnson has been convicted
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of fraud in new york. he was accused of using insider knowledge to manipulate prices of the british pound before executing a $3.5 billion currency trade. the charges are from the edge -- inc execution of an order 2011. prosecutors are said to be seeking to extradite a second man in the case. no word from johnson possibly are's. linda, looking to finalize a merger with plaques there. the minimum threshold set to be released by november 7. creating what will be the world's a guest gasoline supplier, with three quarters of the shares to be tendered by tuesday. td ameritrade customers can now trade equity etf's using facebook messenger. they can access quarterly performance video statements and receive a weekly alert.
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they are the first to offer the socialvices on media platform. they're looking on extending it to apple and twitter. that is your latest bloomberg business flash. coming up, can high-end consumer products find success on amazon without tarnishing their elite brand? we will talk to one industry ceo after the break. that's a little clue. this is bloomberg. ♪
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♪ is "bloomberg markets." i am vonnie quinn. retail, making its home for years in brick. but how will they adapt without losing it elite appeal? we are joined by someone who has attended the ww be summit because she has had so much
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success with social media, the platform she is speaking on just down the road. , thank you for joining us. you certainly cracked the code, if you were, of social media, doubling the earned social media revenue according to one researcher. which is phenomenal. how? for 20 years i had that interaction with the consumer, with my clients. best that i had. i wanted to teach her all the secrets of the beauty. how to achieve that perfect balance and proportion according to my fear he that i developed about brow shaping. and why makeup is invented. we women, we always have to think, why makeup? aastasia: is wanting to have good idea, it's another selling it to so for a or another brand.
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but remember, -- anastasia: but remember, i started the brand and put it into existence. because of my daughter, the social media was the initial adopter, the only brand on social media. everything ias my, learned in working with the customer in a salon for 20 myrs, i of course put it in social media. every single teenager wanted to learn how to do their eyebrows or their makeup and how to take good pictures. vonnie: how many stores are you in? anastasia: 2500 in the united states. so for a, alter, bloomingdale's -- no bloomingdale's, sorry. macy's, nordstrom's.
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we are in 25 countries and we keep growing. vonnie: how have you managed to keep private equity at a? i'm still by myself, financially, but i think i looked to my customers to be my bank, you know? i believe that my customers could give me the capital to grow the country -- company. i worked really hard. easy,t saying that was but remember when i started i couldn't even get a credit card for $500. the private equity didn't throw money at me when i started the business. later on i realized i could fund my own business. i am here today, 20 years later, having this incredible company founded by myself. vonnie: what did you do question mark how did you manage -- you say the customers, but we all know in this day and age, looking at the new kind of retailer, it's really hard. customer acquisition is
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expensive and to keep them coming back, sometimes it doesn't happen. anastasia: let's say i was really good at math and i was able to create the capital to, to buy my goods and sell them. eyebrows say, i did nonstop. probably i would go around the globe doing eyebrows. i worked 12 to 14 hours every day, seven days a week, just to be able to develop this prison -- business. --nie: the carb day ship kardashian approval really boosted the business. anastasia: before that i had this validation from a big group , penelope cruz, sharon stone, jennifer aniston, and kim kardashian was the ultimate hollywood stamp of approval because she has such a huge presence on social media. i wanted to ask you
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about the terms going forward. our you going to be expanding beyond this? anastasia: newmont to expand into asia and other parts of the world. my concept is to have my products everywhere. of course, right now i have to sit down and talk with my book -- my daughter. that's a big part of the business. we need to decide what to do. do we still want to keep going on our own? or do we want to get a partner? very quickly, direct to consumers, you haven't gone back to that yet? anastasia: i think my partners are my retailers. so for a, all the -- sephora, ulta, everyone i mentioned, and they are such as amazing partnership. the consumer will find it on social media and they want to touch it in the store and i
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think that experience is incredible and i think that i have an amazing partner in all those department stores that i am so proud of. we really appreciate your time. and you popping over, we know it was such a busy day. just once again, speaking on harnessing the power of social media for your brand, which you certainly have done. anastasia:,are thank you for joining us. thank you very much --, thank you for joining us. anastasia: thank you very much. vonnie: coming up, the prime minister of singapore, we will bring you that live at 1:30 new york time. a quick reminder, you can watch our interviews at tv . this is bloomberg. ♪
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>> from bloomberg's world headquarters in new york, i'm david for a. welcome to "bloomberg market: balance of power." here are the top stories that we are watching right now.
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the wheels are in motion on capitol hill to overhaul the tax code, but the debate over details threatens to derail efforts. the new cap on 401(k) savings is part of the tax plan. the former u.s. ambassador to , joins us thisus hour for future on relationship between the u.s. and china. and a joint statement with the prime minister of singapore is scheduled from the rose garden. we will review that live starting in about 30 minutes time. ♪ david: all right, let's check in on the first word news this afternoon. mark: president trump will meet .ith the philippian president he has been criticiz

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