tv Bloomberg Markets Americas Bloomberg November 15, 2017 2:00pm-3:30pm EST
scarlet: we are live in new york over the next hour. a big bet on deutsche bank. in new top investor in germany's number one lender. a bloomberg exclusive with think of canada. its senior deputy governor joins us to discuss monetary policy and much more. amazon takes ai to a new level . we will give you the inside scoop. we have breaking news. the president will be making a statement at 3:00 p.m. new york time. no word on the topic. we will give you a glimpse of his comments when they begin. we are tracking markets. right now, we have two hours to go before the close. abigail doolittle is here with this risk off feel.
the dow and s&p 500 and nasdaq all lower. we've had a moderation of the declines, going back toward the lows. the dow down .5%. the philadelphia semiconductor index underperforming a bit more. wobbliness fore stocks globally must certainly seeing it in the u.s. this follows a pullback for high-yield credit as well. we are seeing risk off and they in the haven assets. bonds are trading higher. the yen gaining by .4% against the dollar. oil is considered a riskier growth asset. down for a second day in a row.
up 8%. last week, we had big declines in bitcoin. let's go into the bloomberg and take a look at the stocks. while we have weakness for the chip today, on the quarter, it's a different story. the philadelphia semiconductor index in white outperforming the dow and nasdaq in purple and orange. take a look at the biotech index in blue. down for the first quarter in several. we had a bear market in 2015. movers, some of the chip helping the stocks. logic, applerrus suppliers falling after tepid iphone 8 demand. weighing on the other
apple suppliers. julia: let's turn to washington as we await comments from president trump expected to be on tax reform. the latest draft from a publicans and the senate would make many individual tax breaks temporary. we could see repeal of key parts of obamacare. joining us from capitol hill is kevin cirilli. great to have you here. was tax reform not exciting enough? why not throw in obamacare to keep it really interesting? kevin: it just got interesting, right? republicans say this will help middle income americans by removing a tax that they don't want to pay. democrats disagree with that notion, arguing these are the folks who need health care.
saying shean collins is now undecided about whether or not she will support a tax package that includes a repeal of the individual mandate from the affordable care act. ofaught up with pat toomey pennsylvania about whether he thinks including the individual mandate repeal will hinder tax reform's chances. >> i think there is broad support among republicans in the house and the senate to do away with his terrible regressive tax penalty on people who get hit with it because they cannot afford to buy these terrible policies. 83% of theania come people who get hit with the tax have income less than $50,000. anyone who wants to help middle class families, we are likely to support it even more. i think it increases the chance
that we get this done. i'm very optimistic. kevin: the house is scheduled to vote on this tomorrow. setting it up for a vote in the senate next week or shortly thereafter. julia: what are they trying to murkowskis of -- lisa was concerned about obamacare. kevin: republicans are trying to combine the elusive policy win for their base with tax reform. i've spoken with a lot of democrats who say framing this as republicans losing the majority in 2018 might not be the way to look at it. , they this get pass
might be able to write those gains going into the midterm. in termsd of the day, of the administration saying they are on pace for getting this done by the end of the year, they are the last byitical er hurdle to clear december 8 to avoid a government shutdown. scarlet: i want to bring in richard. we talk a lot about how the president would get to reshape the federal reserve. he's also going to be able to reshape this part of the financial regulatory structure. what can you tell us about this move? it's not unexpected. >> not unexpected. thepolitical future of outgoing director is being watched. he has political office ambitions in the state of ohio.
if you are outside of washington inthe banking industry or the personal community banking industry, you are closely watching the restructuring that could go on there's a handful of legislation in the financial choice act and on the senate banking committee that would dramatically restructure it to a five-member board similar to what you see at other regulatory agencies like the securities and exchange commission. what all of this means, changes coming to the cfpb. reshape dramatically the brainchild of elizabeth warren, the driving force behind the creation of the cfpb. a lot of democrats issuing statements praising the director for his tenure, but now, their
ability to reshape the cfpb could be in republicans' hands. scarlet: roy moore is still under fire. julia: we are waiting for the president to make comments around 3:00 p.m. this afternoon. clearly this will be one of the critical questions he's asked if there's a q&a. every republican source i have talked with since the story has gripped the american consciousness, i cannot find one person who's defending roy moore. , we willkevin cirilli check in with you later on. the president due to speak at 3:00 p.m. eastern time. let's get a check on the first word news this afternoon. mark: authorities say the gunman who went on a shooting rampage in northern california yesterday
began the killing with his wife. wife wased shooter's found dead inside their home. he shot and killed four people and wounded 10 others at different locations around the rural community. he was shot to death by police. today, we will hear from the three ucla basketball players were detained in china over the alleged shoplifting of designer sunglasses. they returned to los angeles last night. president trump brought up the case in a meeting with china's president. today, mr. trump asked on twitter whether they would thank him. he added "they were headed for 10 years in jail." government data released today shows and sign-ups for plansable care act health republican senators are pushing to pay for tax cuts by
repealing obamacare's requirement to carry coverage. nearly 1.5 million consumers picked up a plan through november 11. that's compared with just over one million from november 1 through the 12th of last year. simba was militaries in control of the capital and the state broadcaster today and is holding robert mugabe and his wife under house arrest. it has noty insists staged a takeover but is beginning the process of restoring zimbabwe's democracy. mugabe is the world's oldest head of state. he has ruled for 33 years. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. scarlet: coming up, is going -- acquires a stake in deutsche bank.
scarlet: this is "bloomberg markets." deutsche bank has a brand-new big investor. shares of the bank rising today after cerberus capital inagement took a 3% stake db. the move comes just months after they took a 5% stake in commerzbank. joining us now, jason kelly. is this a bit on eurozone's banking sector? >> it's interesting when you see
private equity get into any company or any industry but certainly financial institutions in this way. this is not a one-off. this follows the investment in commerzbank. the obvious speculation, what seems to have driven the shares of both banks up is this idea that they could put them together. these are dealmakers. they are not just idle stock speculators. they want to make something happen to get those sorts of that limited partners expect from big private equity firms. julia: i loved the different themes going on in this story . these two banks talked in the up butout joining decided they needed to focus on their individual performances first.
they are trying to unlock some value that the banks cannot do on their own. >> there's this theme starting to play out around european banks. this follows cerberus itself taking an austrian bank public earlier this year. i spoke with stephen pearson earlier this morning. he talked about the opportunities in this deal and in banking in general. >> i do think as the economy is re, it could beheir julie an interesting play on the german economy more broadly. from our own perspective, we've been watching europe very closely. we have one investment in southern europe. we have seen significant gdp growth in europe in particular. >> they love to get into these slightly messy situations and hopefully make some money coming out of it. for at: slightly messy
long time. the ceo has been given a long leash up until now by investors. let's listen to what chris had to say about what this could mean for john. >> cerberus is in. how long does john have now? >> weeks. he has to articulate a vision. thiso tell us why impressive and long existing shop has decided to put a bet down on him. he has to tell us why. scarlet: so far, he's more of a consultant tight. desk consultant type -- a consultant type. julia: this is where he comes in. the management strategy. >> when i heard that this morning and when it all comes together, what do private equity firms do?
they love putting their own guys in and shaking it up. withrus has a history these messy sorts of situations. they were in investor in chrysler. they got into the gun business. this is one of these firms that really does traffic in some very interesting situations. to that point about management, you have to think they have some strong opinions there. -- they arecan see not seeing it at the top line in terms of revenues. the opportunity here for these here inat is the break the system that we can unlock and fix? it's highly exciting. >> what private equity promises its investors in the pitch it makes to companies they are investing in, this is a public , whatment, not a takeover
private equity firms purport to do is get under the hood and solve those processes. scarlet: let's talk about the guy who will lead the unlike in -- unlocking. how does he tend to approach these situations? -- heis in in the magnet is an in a nomadic figure -- an enigmatic -- he is an figure. this is someone who is very -- john snow has acted as the chairman of that firm, a former cabinet secretary himself. this is a firm that is very familiar with the u.s. government and foreign government.
he said protected interest rates could lead to people spending less. he talks about a future with robots and life at the world's biggest money manager. >> what's it like working with larry fink? philipp: larry is a bit older than me. i try to keep fit. traveling with him is a workout. he is demanding. no more demanding than he is on himself. he's going to this phrase that we all have to be students. there's no excuse for anybody at black rock to not be a daily student of the market. that shapes the culture very much at black rock. this relentless never be satisfied, always remember that the world moves on, you have to continue to learn every single day.
we have a lot of initiatives around internal programs and academy where we force everybody and encourage everybody to live that motto. if people can't do that or don't want to do that, they are in the wrong place. muchulture he carries very runs throughout the firm. >> talk to me in real terms. what is robot advisor? sill i have a robot is a bos at any point? philipp: no. you will have lots of interface. throughout distributors, they will have tools that will make it much easier for them to deal with their clients, work with their clients and bring value to their clients. we want to be that platform. through aoducts,
combination of technology driven investments and human driven investments, we will increasingly be visible. this whole distinction of saying we have technology and than we i suspect that's not going to be the world we live in 10 years from now. there will be important roles to play by people, learning about the markets, experience, history, these things will continue to be important. our people will be empowered by technology in many ways. >> you definitely have an advantage because of the size and scope. do you believe there will be more consolidation amongst your competitors? >> there will be a lot of companies that will disappear. that doesn't necessarily mean there will be a lot of m&a. some of these companies may not be worth buying. the clients will safely migrate away from these companies and by
other products. it doesn't mean consolidation in a corporate sense. we will see a lot of change in the asset management industry. those companies that cannot respond to the need change. we disappear. it's an easy thing for a client to change his or her asset manager. julia: you can catch the full interview with philipp theebrand on "leaders with lacqua." lachlan murdoch says fox is confident the deal with sky will close in 2018. murdoch is the cochairman of 21st century fox.
shares falling after the --gmaker said patients died several patients developed a condition where white cells disappeared from the body, seven of which is about -- seven of which developed sepsis infections. a bloomberg exclusive with the bank of canada. we've become of the commodity crunch, a red-hot housing market and where next on interest rates. ♪
after the bloomberg commodity index yesterday declined the most since may. we did out of china sparking for that demand will weaken as the number two economy dials back. they are off by 1.4% over the last two days. oils downward spiral continues with wti crude trading around $55 a barrel. a government report showing u.s. inventories piled up for a second week. another report indicated russia is still thinking it's too early to announce any agreement to extend opec's output cut. gold wiping out earlier gains as investors weigh uncertainty over u.s. tax reform and the latest inflation data. the bottoming out of energy and commodity prices and a soaring housing market have put the spotlight on canada's economy. the countries on track for more than 3% growth this year, a full percentage point above the u.s.. desk the country is on track for more than 3% growth this year, a
full percentage point above the u.s. julia: we are joined by the senior deputy governor, carolyn wilkins. i want to start with policy. you've begun the process of normalization here. the bank hiked twice in secession and then turned more cautious. what changed in your perceptions of the risk and your assessment between those times? didlyn: effectively, we increase interest rates in july and then in september. this is on the back of an economy that is progressing quite strongly. we had 4.5% growth in the second quarter. growth is more broadly based. we can see the effect of the oil price shock is largely behind us. we've are decreased interest rates by 50 basis points. -- we have decreased interest rates by 50 basis points.
julia: where do you see yourself now? it's data dependent? carolyn: we were clear that we think over time that less monetary stimulus is likely to be appropriate. at the same time, we were going to be cautious about it. that comes from the fact that we are looking closely at the inflation process, whether the phillips curve still holds, and to see the effects of the interest rate increases we already did on the economy. currency.k at the we did see the currency strengthen as a result of the sykes. to what extent do you see that doing the work for you here? carolyn: markets will do what markets do. over the summer, what we saw is an interplay of where markets saw a relative monetary policy going in terms of the fed and the bank of canada and changes in commodity markets. a speech before
those two hikes and ted low-inflation is no indicator of past slack. can we get any sense of how important inflation is to you today in terms of decision-making compared to the past? is it less important? carolyn: inflation is always extremely important. it is our only targeted the function of inflation is a function of what's happening in energy markets and gas prices and what's happening in terms of underlying supply and demand pressures. we don't see that relationship has gone away completely. that means inflation today is going to be a function of where past slack was. as we look forward and see slack is being absorbed, that drag on inflation will go away. julia: what is more important in terms of policy? carolyn: it depends on the source of the surprise. from a total inflation point of
view, you know that 75% of the variability in that is simply due to consumer and energy prices. the other is an indication of where the economy might be going in the future, where those wage pressures will be, how the labor market is going to perform. the relationship with the phillips curve, why haven't wages been stronger? a lot of people are quite mystified here. carolyn: it is a global phenomenon. what seems to be happening is that you see strong labor market growth and lots of employment. there's a lot of theories out there. some are just globalization and supply chains making labor less competitive. for canada, there's other explanations.
it's a function of the legacy of the oil price shock. good people moving from energy intensive industries with higher ines to get new jobs industries that may pay less. there's still slack in the labor market. which growth will be a little slower. -- wage growth will be a little slower. wages should start to rise. thea: do you think relationship is weaker because of all the reasons you just suggested? the relationship is softened now. carolyn: it is too early to tell. we have to get through the cycle. those estimates can change over time. some of the theories related to globalization, we don't see evidence in the data today.
we absolutely need to keep an open mind because that could change over time. julia: i want to talk about nafta as well. you've talked about the trade relationship with forecasts for growth and investment. do you have a contingency plan in place if the neck to -- the nafta talks fail? carolyn: we've gone out to talk to businesses and see how this uncertainty is related to trade agreements affecting you and your business. canadian businesses are telling us when they are thinking about investment, they need to be more cautious. we have taken that into account. in terms of what will happen in there's too many possibilities for us to factor that into policy at this stage. julia: are those businesses frightened? concernst potential because we have uncertainty that
we don't know how to tackle at the stage. are they very concerned given the rhetoric in particular? these talks could fail. carolyn: of course they are concerned. we have a business outlook survey that shows businesses are very optimistic about the manned. demand. many economies are experiencing positive growth. when you combine it with canadian growth being good as well -- at the same time, that uncertainty, what the payoff investment,future that is clearly top of mind. canadian businesses are planning on investing in canada. that's why our investment profile shows an upward trend. debt, this is a concern for the central bank at
this point. does it make you more or less likely to hike rates at this stage? carolyn: the fact that household that has risen quite markedly in the last couple of years is a factor in our interest rate decisions because we expect that interest rate sensitivity will be stronger than in the past. we factor that into our forecasting model. we have built it into our next version of the forecasting model. this is the kind of thing that we haven't seen over history. we need to because his and wait and see. that's we need to be cautious and wait and see. julia: i want to talk about the housing market. this could be a concern at some point in the future. i know you have focused on macro prudential talks. how are you looking at this? what was your involvement? carolyn: you are right folks on
toronto. there's also vancouver. -- you are right to focus on toronto. there's also vancouver. there are fundamental supply issues. that has led to quite a rapid increase in prices in a way that created concerns for us that thatwere expectations could be troubling to boom bust cycles. the superintendent took some measures to address that,. particularly on the housing finance site by tightening finance rules to make sure the mortgages that were written were higher quality. that has caused some slowdown in the prices. you see a steep drop in vancouver. it has started going up again.
fundamentals reassert themselves every while. julia: do you speak to berkshire hathaway to facilitate the arrangement that took place? carolyn: the letter experienced theidiosyncratic event -- securities commission had issues with their disclosures. that was a trigger for some liquidity issues that they found difficult to address. our role in that was really to understand the situation and see what it meant for financial stability, whether there was the possibility of contagion. the rule of any central bank is to act as the lender of last resort. julia: you are leading the bank's research into cryptocurrencies. you said this will not be something that is mainstream or a cash replacement at this time. how concerned are you?
there's a bubble. the ucf bubble that should do you see a bubble -- dual use see see a bubble? you carolyn: this is a security. that's how it is treated in canada. the technologies that underpin it, it provides the opportunity to create efficiencies that could be beneficial to market participants and businesses and households. julia: what about initial point offerings? you are at risk of losing your entire capital investment if you get involved in these things. do we need to see more of this? i'm not a securities regulator. it is not the bank of canada's role to comment on any specific ipo.
these look more like securities to me than a currency/ they should be regulated as such. julia: you don't see fraud here. you are the most senior woman at the bank. there have been rumors surrounding your future career at the bank in particular. the government's role will likely come up as an option in 2020. would you like to lead the bank of canada? carolyn: i'm 3.5 years into my mandate. it's a seven-year mandate. i very much enjoy working for the bank. it's a great privilege to work with really smart people who are dedicated to canada and we have a great agenda going forward in terms of looking at big issues with the monetary policy framework, digital currencies to think about and
many other subjects that i will be highly invested in. julia: you are a busy woman, but not ruling it out, i noticed. scarlet: let's get a check on the other headlines with mark barton. -- mark crumpton. mark: mark cordray said today he will leave the position by the end of the month. the announcement comes amid growing speculation he will run for governor of ohio is a democrat. his early resignation will give president trump a chance to appoint his own director of the agency. chief says he's confident the alliance will have sufficient forces in 2018 to fulfill its training mission in afghanistan after months of lobbying allies to increase troop contributions. the secretary-general told the associated press that nato will not fall short. are still getting
more allies on board. the security council is approved a resolution to increase the peacekeeping force in the african republic -- the addition of 900 soldiers comes at the impoverished country aces -- faces rising tensions, violence, and a deteriorating him and terry and situation. -- a deteriorating humanitarian resolution. supreme court justices are hearing arguments from two petitioners seeking to overturn the president's reelection in last month's repeat vote. the court made history when it nullified the victory in august. boycotted -- the opposition leader boycotted --
it's almost ready for prime time. we have the scoop from san francisco. this is still in beta mode. there is one in seattle. what can you tell us about when this might be available to the public? >> they've been keeping reporters at bay. our understanding from sources at amazon is that it is going to open any day now, really soon. it's been delayed from when amazon said it would originally open. they said it would open early 2017. clearly, there were some hiccups that held it back. they are ready now. julia: tell us how it actually works. -- i love thet idea. how does it actually work? >> they really don't share to me details about how it actually works. -- two many details about how it actually works.
the premise of the technology is you walk in and see a variety of different ai technologies including facial recognition and cameras to register when you take something off a shelf and then you walk out of the store picked this out of the store. -- walk out of the store. -- theyrite about that were encouraging employees to bugs.t up to catch three employees put on bright and wentkachu onesies into the store and they were accurately charged. thank you so much. who is getting a raise and who is not.
julia: this is "bloomberg markets." another victory for machines and the people who operate them. the only traders getting a pay raise this year are those who run electronic platforms. that's according to a new report by options group. they discussed the full report in a bloomberg exclusive. >> in the last couple of years, what we have seen is that banks and hedge funds have geared more towards automating their business. this has led to competition in these businesses, new technologies are emerging and technologies change very quickly. ai and machine learning are huge. it's not just the technology that plays a big part in these businesses. -- date of these banks have
the data these banks have. the combination of all these technologies is coming into play as a massive tool to get good pricing and transparency in the and toto the customers their internal processes and systems as well. thatl of the support for -- >> absolutely. you look at commercial banking and corporate banking, there's huge predictive analytics that are happening at this moment. the banks would not go out and hire data scientists -- data science is massive and so is ai and machine learning. mark: break it down for us. who is making all the money? who's getting the best compensation? >> in this business, any
compensation is a huge compensation. in the last for years, we've seen a bit of pressure on compensation. they are always superstars in these groups that get paid. there's a war for talented traders. banks don't want to lose their top performers. you don't hear the heyday competition of 2006 and 2007, any sort of compensation is massive and these businesses. it's great that they are in that position. . it's not like saving lives, you know? julie: true. mark: i have to ask you about brexit. we are not through the process yet. from where you are sitting, what do you see -- >> our partners did a lot of research on this.
we have seen different firms take a different approach to it. there are many european money centers where talent is being we are seeing talent being migrated to dublin and frankfurt and amsterdam. i still think london is a massive and a great money center. we will see where people move these bodies to. most of the bodies will be in the back office and technology areas where it's more compatible to lifestyle oriented cities. scarlet: that was our exclusive interview with the ceo of options group. it's time for the bloomberg business flash. target posting a full year earnings outlook that missed the mark. the shortfall was due to target iss -- embarking on a $7 billion multiyear turnaround plan.
has filed for a u.s. initial public offering. their ipo is for $100 million. that is a placeholder number that will likely change. of north american business the biggest retail travel company. that is your business flash update. scarlet: president trump is due to talk taxi form and his asia trip -- julia: president trump is due to talk about tax reform and his asia trip. from new york, this is bloomberg. ♪
live him bloomberg headquarters over the next hour, here are the .op stories around the world happening this hour president trump due to speak on tax reform . he says it will be a major statement. we can't down to the speech with james langford. to embracing passive investing, a big change of heart. let's get a market check. : we have declines for the major averages. the second down day for the major averages in a row. week'sthis follows last first decline in nine weeks.
there is a growing sense of risk . for a fifth day in a row. the biggest daily streak higher since april. there is a sense of the ,inancial markets we have seen a broad-based pullback. this is a great way to see quickly what is happening. this is the s&p 500. of them are low were. down on bottom. the second worst consumer staple down a tenths of 1%. let's dig into that. target am a walmart, all low were. they put up a beat and raise quarter.
margins are getting squeezed as they tried to compete with walmart around pricing. this seems to be weighing the companies also. some of these consumer staple names really taking a hit. let's take a look at square and bitcoin. the payment company is going to allow some used to buy bitcoin. we have bitcoin up 9% stopping that selloff. tearin is still on quite a .f 700% year to date >> thank you so much. let's get your check of the headlines with mark crumpton.
orrin hatch is defending the decision to include in the gop tax bill a repeal of the obama camera wire meant for americans to get health insurance. he said the requirement that nearly everyone have coverage or face a fine is a tax. >> the relevant statute is the internal revenue code. we are familiar with the old saying, if it looks like a duck and >> like a duck it is probably a duck. >> let's not kid around. this is not just another garden-variety attack on the affordable care act. this is repeal of that law. raise 338 billion dollars that could help pay for deep tax cut's for corporations.
they contend the elimination would kick millions of americans off of insurance roles. a lawyer for puerto rico's federal oversight board said the territory is considering suspending debt service payments for five years. the first indication of how the devastation will affect the restructuring of the island that and a moratorium may be included as part of the plan to reduce what it owes from bankruptcy. national mourning after lauds on the outskirts of athens killed 14 people. a severe storm brought rain to the capital. bloodyads turned into water. more torrential rain is expected tomorrow. a senior palestinian official says the long anticipated
opening of gaza's border crossing has been postponed and talks are underway to set a new day. sidedvisers said egypt special circumstances for dealing the crossings opening. egypt has cap debt mostly shuttered. global news 24 hours a day andred by 2700 journalists analysts in 120 countries. >> thank you. president trump due to talk tax .eform and his asia trip we will bring you that live. we will speak with senator james lankford to preview with the president might say. this is bloomberg.
scarlet: this is bloomberg markets. the fifth round of nafta talks have started in mexico city. are notlevel ministers believing they will arrive on friday. birth reports of tension, what does it signal for the future of the trade deal? joining us, james lankford. part of the animosity has been caused by the tough line the united states is taking. .t is playing hardball is that the right strategy? >> we about to find out. they wanted to do bilateral deals. they are announcing
the first of those bilateral deals. if we can get improved status on nafta, good but we need to maintain open free trade. our world economy is based on it. i'm glad you bring up trade overall. they have agreed to move forward with their own trade deal without the united states. this follows the decision to remove them from it. we could see a weaker position in asia, one of the world's fastest-growing regions while trying to -- china's star is rising. >> the goal was to form a trade alliance block that would block china from that. there would be a common set of trade agreements. we have got to see the united states have trade agreements with all of those nations.
when we see those bilateral trade agreements, i will be more content on that but we want to see it get resolved. has said hedent could walk away if they better derail -- deal is not signed here. that a bad option for the united states bottom line? >> specifically on nafta. the nafta agreement is exceptionally important to the united states. though should be concerns and issues we can address in an ongoing conversation. this is a big real estate deal for him to resolve. you have to put out the boundaries and negotiate the deal. things like a sunset
destabilizes any nafta conversation. that just encourages people to not trade and invest if there is a sunset. isia: what do you think being done here that does not make sense? conversationbeen about trade deficits. that is difficult to do with other nations. going toions are not have the purchasing power we have. parody or for us to be in the black with every nation, that is going to be difficult if not impossible just based on the size of our economy. to focus on how we can advance projects, not to emphasize a trade deficit alone is some mark that has to be achieved.
>> i want to stay on the topic of deficit. that brings us to tax reform. do you support this latest move to include the individual mandate in the tax repeal bill? >> i do. it is a tax. it is a tax that hits directly to the middle class. people that pay the individual mandate make $60,000 or less per year. they are suffering the consequences. they have a tax penalty. they would rather have insurance. it doesn't take away the subsidies. it does free up those in the middle class to not have to pay that penalty. scarlet: should of the tied to the obamacare fix? or not.
>> i don't know whether it will be tied to that. there is conversation it will be close in the vote. i would assume those are two different votes at two different moments. julia: where do you stand on the issue of roy moore? >> i would like to see him step aside. it would help the people of alabama as they make their choice. they are uncomfortable voting for someone with a cloud over their head as a republican as well. it is difficult for the people of alabama and the nation to accusations from multiple individuals come out and for roy moore to not have a clear denial and his story changing. this is brought the attention to the nation that whether you in hollywood or in capitol hill, your personal behavior should matter for leaders, and we should hold leaders to a higher
account. individualsrs to be that are good role models. if this pushes our nation to evaluate that again, that is a positive result. >> what do you expect? do you want him to come out today and say you need to step aside? a i would hope he would make conversation face-to-face. rather than through the media. i would hope when he comes to talk about trade these are pending trade agreements for the first of several trade agreements. they are important to get done. scarlet: we have come full circle back to trade. julia: and now the top business stories now, deutsche bank -- a top shareholder of those banks.
the private equity service controlled by stephen feinberg. u.s. treasury treasury secretary steven mnuchin signed off on the almighty buck, to see production of the new dollar bill with his signature. he was accompanied by his wife and jared kushner. what a great photo. some users of the square cash up will be able to buy the cryptocurrency. they allowed merchants to accept bitcoin since 2014. that is your business update. still ahead, how to play square. why the stock could close at a record high today. from new york, this is
julia: this is bloomberg markets. off of his tour in asia president trump is set to make a statement at the white house as the tax debate continues on capitol hill. let's get to margaret. we can pick or choose. great to have you with us. what you expecting to say? what six successes is he going to promote off of the back of this trip? , it is muchtanding more of a generalized wrap up of president feels he
accomplished and roadmap of his general policy. wase evil to say it successful, this and that. plansle of things, the and deals announced during the his rhetoricourse on north korea in that speech that he gave in south korea. our understanding at this point is not to look for any rollout of new specific initiatives in his remark today. he may talk about trade. he wants to emphasize bilateral relations. if you're looking for a new announcement on steel and tariffs, today is not going to be the day. an official said it is the president. if a question is shouted we may hear something we are not planning to.
this as newthink of specific announcements on korea. is he going to say something about roy moore? thus far as we have heard, not part of the plans. reporters are likely to press him. there is increasing pressure for the president to apply pressure to roy moore and tell him to step aside and allow this senate nomination to me made cleanly. to step aside. we know whether or not the president has applied pressure here? >> since the president has come back from his trip he has begun discussions about the situation but we don't have a lot of visibility on the details of what he is doing behind the scenes rather than going to twitter or in front of a microphone.
there's a couple of considerations beyond gathering the facts. one is the political consideration. the second, the president did not get his take in the initial public and primary in alabama. he would not want to lose twice on this issue and part of the consideration may be whether the president can sway the thinking of voters in alabama. another part of that consideration of course, what message does it send if he does not say something about his signal to women voters across the country. this is something that is under discussion. how soon he will say something, we have to wait and see. scarlet: trade will be front and center. the it comes to trade,
commerce secretary, a key player there. a have gotten word perhaps net worth is not what he claimed a to be and he is not billionaire. the you think given president trump likes to surround himself with billionaires, does this undermine his standing? revised down to $860 million. there are a few circles in the world where someone's power is $860nd if they only have million. this white house is one of them. one is the issue of credibility. he has been an important figure because of his long record. this may shake that. and that of the president himself. he does not like to be embarrassed or surprise.
the president has faced questions about how much is he worth in the context of his only willingness to disclose his tax returns. this is something that on a few levels may raise issues that are not entirely comfortable but he remains an important figure in this administration. >> we are waiting for the president to begin making his statement. julia: we could not independently verify information we have been given. that is why they stripped those financials out. >> that is absolutely right. full disclosure. verification would be welcome. you, joining me, a managing partner at auction fit. i want to get to your trade
first and then we can talk about the markets more. you are looking at square today. it had an interesting move as it announced it is going to be accepting bitcoin and allowing people to make investments in bitcoin through square. >> i think that is good for a headline pop but there is more to square than just bitcoin. i went to the doctor's office and i was going to make a co-pay. they pulled out a square chip. they have cornered the small business market in a way that has caught others by surprise. that is why their earnings have been so good. bitcoin move is just going to draw in millennials even more. they are drawn to bitcoin. generation y. they are the bitcoin traders. this is going to bring them even further into the table.
is the first major group that is announced they are going to do transactions that way. some have said we will accept bitcoin but we have not heard you can buy it and hold it from the same source. that is going to be valuable and it has a huge upside. theink they are paypal for teens to 2020. what does your trade look like? >> they are going to have a nice run into earnings. the january. it has good risk reward. and, it is a long-term place.
i'm getting a discount. i'm not having to buy that earnings premium. >> squares market cap is now larger than twitter. thank you. appreciate your time. coming up, president trump due to speak. you're looking at live pictures at the white house where he could appear shortly. a major statement, apparently. ♪ is this a phone?
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