Skip to main content

tv   Whatd You Miss  Bloomberg  September 6, 2019 4:00pm-5:00pm EDT

4:00 pm
interesting you bring up the r say recession, it seems to have been put on the back runner but we are losing our edge as we head towards the close. we are up a few points on the s&p 500, the nasdaq dragging lower by the risks that hang over facebook and google. scarlet: we had a shortened week so we are higher for the week every single group is higher. we have the ugly a diverted weekend. the worst performers were utilities and health care equipment. the best performers, consumer durables up 4.6% and chipmakers up. caroline: so much data to digest this week and out of china. let's look at the markets. reporter: i am still thinking about the bank stocks because they were a drag. the major interest is -- indices
4:01 pm
do not finish higher. facebook and google, alphabet really bracing for antitrust probes. you can see the shares down 1.8%. allon, netflix and alphabet lower. the overhang of big tech being regulated has weighed on this. let's put this into the weekly. something did happy, the faang the closing back. back to 2015 and a high of 2018, the complex rising 170%. incan see from 2018 stuck this range, the facebook social media rose, the regulation fears, now down 10% from the recent highs of big spreads for what the s&p 500 is doing. these have got to get on board if the s&p 500 will continue climbing. this chart is not so bullish or bearish. it is stuck sideways so it will be interesting to watch.
4:02 pm
that has notething been stuck sideways is the bond market. i want to bring it back to that space because when you have conversations about the slides we have seen in yields, many bring up supply and demand dynamics. the idea that there are so many negative yielding bonds overseas that if investors are looking for yield or safety, they have to come to the u.s. that is pushing u.s. yields lower. it was said not so fast. they pointed to this chart. you can see in the white line that is your dais and manufacturing index -- your ism manufacturing index. they moved pretty closely together. they are highly correlated. slide in theng the tenure treasury is more being driven by u.s. fundamentals, not actually by global forces. if it was the opposite, you
4:03 pm
would not see this correlation you are seeing in the charts. that is something to keep in mind when people say recession fears, you don't have to worry because of global forces at play. scarlet: i want to pick up where sarah left off because with us is citi private bank chief investment officer david bill and and a bloomberg reporter talking about fixed income. you heard about the idea of u.s. treasury market is more beholden to what is going on in the u.s. then it is global concern. -- than it is global concern. david: you can never say supply and demand is what is moving the treasury market because it is so big it is not valid. that is more volatile for corporate bond space or municipal bonds, but it is hand in hand. if you see global recession fears, yields will come down for that sort of happens globally. it is not just the u.s. market. if you have yields falling in
4:04 pm
other places, treasury will be attractive. it is a push and pull. fundamentals are driving august, but there are forces at play driving the market going forward. lifedo you see any sign of outside the u.s. because it feels like people are incredibly negative? i don't see any great spot. i we will enter the truth. -- and we won't in terms of asian growth. we see it being subpar. the idea that central banks will collectively avoid the economy and cause massive increase is not the case. that data we just saw about bonds is something we should all look at. we think earnings will drive stocks. will manufacturing and rates of
4:05 pm
growth, we are going through now will drop positive, they are both fundamental. that chart indicates we are seeing materially slower growth. what is going to market is the consumer and low unemployment rates is the positive engine. manufacturing in the u.s., exports and manufacturing overseas, germany being an example, china showing weakness. as long as consumers get a hold of that, very important but the bond rates are indicating we are slowing everywhere and that makes us more vulnerable to a potential shock. doesn't mean we are going into recession but it is not the environment it was in 2017. caroline: talking about fundamentals and technicals and the corporate bond issuance, what are your theories on what has driven all of these companies? i remember when i was reporting, i barely had time to go to the loo in september.
4:06 pm
>> even more so. caroline: is it they think we are the lowest we will get in, and are they signaling a peek in terms of the rally or is it why not? >> it is a combination that this is a busy time for corporate bond issuance and that august was one of the best months for interest rates in general ever. it was the fourth eggs rally since 2092. it was a historically strong month so corporate came and borrowed. it is an interesting time because there was an mliv question about what kind of rates it would take to start scary equities. it was 3% of the 10 year. i don't see anyone that sees a 3% 10 year coming up anytime soon. it is where yields are now, stocks and the dichotomies because 3% of the tenure, i was floored. neutral here about that anymore. you hear 10% of the 30 on a bad
4:07 pm
day. does the state or flood of investor great boston -- bond issuance raise concern that companies are getting too indebted and they are taking on too much leverage? the investment-grade companies are doing what it should be. what we wish would happen in europe is an example. if you have a chance to borrow, we wonder why there are not more buybacks in europe. in the u.s. if you have 1% or basis points above the curve, when you backup the truck and have the opportunity to do that instead of issuing equity? i think you would. we don't see that as negative at all if you are running a company that you would want to do that. joe: i was looking at apple 10 year bonds trading 30 basis points higher than treasuries. apple will not go bankrupt in the next 10 years. is it worth that slight little bit of risk for the 30 basis
4:08 pm
points hiccup? it should people buy into this i.t. boom? the ig space in general -- david: investors should be moving more broadly into the credit quality space, even at these prices. you are not being paid adequately for the real risk that is intrinsic in the high-yield markets, where the fundamentals of those companies are not able to support credits. one of the things about going through the cycle is you end up supporting a lot of zombie companies which allow them to continue to operate for a long time. that is one of the negatives about it. from investment standpoint, we are 10 years in, would you want to own? we are telling private bank clients to own quality, look for dividends, be glad you classified to find places we have a weaker yields, but to
4:09 pm
take risk off of the table. it may not be popular today but it will be as markets unfold in the next year and a half to two years. caroline: we have eyes on the fed and what powell will be saying. next week we have the ecb and europe which incorporates could do more by back. what does mario draghi got to do from your perspective to make this appetizing? david: i am not sure he can do that. brexit has begun to impact people and this has all in full did. they have had some effect on the euro. that is one thing he has got to be conscious of which is keeping whatever growth he can. but keeping rates even lower it is like pushing in a stream, not having any impact on the amount of borrowing or economic growth. he will give support to the credit markets and makeable field comfortable with that. -- make people feel comfortable with that.
4:10 pm
caroline: he can't do very much. scarlet: thank you so much. does it for the closing bell. romaine bostick is stepping in for what did you miss where the team will have a deeper dive into the corporate bond binge. this is bloomberg. ♪ erg. ♪
4:11 pm
4:12 pm
caroline: we are live from bloomberg world headquarters in new york. here is a snapshot of where the mixed pictures are. joe: what did you miss?
4:13 pm
caroline: u.s. stocks held gains to a large extent after the fed chair reinforced the possibility of cuts. they met -- it missed the mark, showing the u.s. they were is not tumbling. and united front against boris, opposition parties pushback against the bid for an early unlikely making a poll until november at the earliest. growth: u.s. jobs missing estimates last month, gained -- nonfarm payrolls coming in below forecasters. temporary permit workers are up but when you look at the chief economic adviser larry kudlow, framing the report as a win for the white house. >> america is working in america the economyaid, and
4:14 pm
is very strong, stronger than the rumor mill media narrative would suggest. these are very strong numbers today. romaine: here to help us dive deeper into that narrative, nick bunker is an economist at in deed hiring lab. when you look at these numbers, it seems to suggest the economy is at least healthy but there is a lot of concern about the slowdown we are seeing in jobs growth. what is the main takeaway? was it a positive report? >> we are seeing a slowdown but let's keep in mind even with private sector, those are above the level we need to keep up with population growth. we are seeing a labor market growing at a fair pace but coming down from the hot 2018. joe: are we to decelerate? is this what a prerecession slow down looks like or is it to premature to say that based on
4:15 pm
what you are saying was a hot 2018? nick: there is a deceleration. the labor market has lost the mentum. not only are we seeing -- lost momentum. there are still some remaining bits of weakness in the labor market that we don't seem to be chipping away at at the rate we were last year. caroline: what will cause alarm for you? nick: a lot of the slowdown we have seen in payroll growth has been in the goods producing sector, manufacturing, construction, industries that are exposed to the global economy. if we start seeing payroll slowing in the service sector, industries that are buffeted and based on domestic consumption, if growth starts slowing down, it will get -- i will get concerned. larry kudlow focused attention on the household survey number,
4:16 pm
the 590,000 jobs or so, that were added based on that survey which is more volatile. he seemed to hammer home the point when you look at the data it provides more of a leading indicator of economic health. what do you make of that statement? nick: this household survey was the more optimistic of the two surveys. we saw a nice pickup in labor force precipitation -- force participation and the population. you need to take both surveys in hand. .hey have flaws and pluses it is hard to say one is going to lead you in the right direction before the other. when people saw the initial data point and saw slowdowns in headline hiring, a deceleration, the pickup in wages, month over month gains, pretty strong gains in labor force participation rate, in another environment,
4:17 pm
that was the kind of report people would be looking for to say, this is for employment, this is what you would it -- full employment, this is what you would expect to see. interpretationat ? can we look at this and say this is what full employment looks like or are there times in your view there is significant slack in the labor market? nick: we are getting closer to full employment but we are not there yet. one of the more optimistic signs was primed age workers with a job hit a level it has not seen in the past 11 years. that is below levels we saw in the early 2000 still. wage growth while it is picking up month over month seems to be still stagnant on and year-over-year basis. there is still relatively elevated rates of part-time work. the labor market is getting stronger and it is far stronger than it was a few years ago,
4:18 pm
there is more room to run. caroline: why the wage inflation? nick: there is more slack in the labor market that perhaps the 2007 levels we are back at now when it comes to the prime age employment ratio, perhaps but is not the baseline and we should look at the early 2000, the last time we saw a tight labor market. romaine: how do we measure the slack? in the data there is a huge number of unfilled jobs. i am always confused when people say the slack is responsible for the lack of which growth or higher wage growth. nick: there are a fair amount of job openings in the labor market. but there are two sides, one that we are 10 years into this recovery and growth is higher than the rates to keep up with population growth.
4:19 pm
if we were at full employment you would see payroll growth below that level. at the same time wrestling a from outsideires the labor force. even though we see this low on a plummet rate, there is a considerable number of workers that are shadow slack. caroline: thank you. pricing for the impact, as we target a lower valuation for the ipo. we will discuss. this is bloomberg. ♪ this is bloomberg. ♪
4:20 pm
4:21 pm
4:22 pm
joe: softbank and its affiliates have 29% stake -- as the company contemplates listing on the
4:23 pm
public market than it previously received, softbank is bracing for a potentially staggering loss. joining us from san francisco with the latest is sarah mcbride. thank you very much for joining us. how high are the stakes for softbank in getting this one out the door at a price that is somewhere in the ballpark of the numbers that have been thrown around? sarah: the stakes are pretty high. i should say softbank owns its differentake in two parts, one from softbank overall and one from division group, division fund. they brought in in 2017 and declined to make more investments after that. the hit would really affect the softbank group overall more than division fund. just -- the vision fund. softbank's last investment was
4:24 pm
at a valuation of $47 billion earlier this year. now the valuation of ipo being discussed is $20 billion. so more than half -- less than half of the price in january. romaine: can you give us more context in happen -- for what happened in 2017? division fund it decided it would not go forward, and we later learned whatever the saudi investment was being orchestrated didn't pan out. why didn't -- why did softbank move forward the way they did? there is one executive named ron fisher who has championed investments into we work. he is not a managing partner at the vision fund. as you pointed out, it was able to block further investments. ron fisher is a big thinker.
4:25 pm
softbank overall has been strategy around investing in certain sectors. if you think a certain sector is right for consolidation, could really bill if it -- could really benefit from technology or other portfolio companies, they tend to go really big. that is the thinking around real estate. it made a number of investments in the sector. the thinking was we work could be the linchpin of their real estate strategy. there was a difference in opinion about how much wework could grow at how fast. caroline: i was chatting with someone who was employed by softbank previously in terms of investing and they said never interest -- underestimate masa. we know we have got alibaba but how much do you think wework, if it does come out at $20 billion, if it doesn't sink thereafter and after uber, and
4:26 pm
slack has been better performing, but its numbers this week were not great -- start to question the overall prowess of softbank and notably vision fund as it launches its second fund? has,: vision fund itself although softbank is a giant -- the biggest investor in wework, vision fund itself is a smaller stake. as big investment was about $4 billion round out of $100 billion two years ago. it is an incredibly high profile investment for vision fund and one of the biggest investments. if we were public at a valuation around $20 billion about what the vision fund paid for it, that is not so great. thesoftbank overall,
4:27 pm
repercussions will just be one of -- they will not look at investors. they will lose lots of money. romaine: thanks to sarah mcbride for joining us from san francisco. now we want to turn to breaking news. --n foods, once valued at kind of a shadow of its former self, taking on a strategic view of its operations earlier this year. the news crossing the wires is it has concluded that review and it will remain as a standard life -- as a standalone company. the stock is down, treating about one dollar per share, a shell of what it used to be, driven by the huge decline in american milk consumption. caroline: fed chair powell cementing expectations for a rate cut from his address in zero. this is bloomberg. ♪
4:28 pm
4:29 pm
when you rest on a leesa hybrid mattress, bedtime is no longer simply the time you go to sleep. it's time to switch off and catch up. enjoy me time, and we time. 40 winks or 8 hours solid. the leesa hybrid mattress combines two technologies to give you deeper rest and rejuvenation. 1,000 pocket springs provide edge to edge support, responsiveness and comfort, while premium foams relieve pressure. keep you comfortably cool and limit motion transfer. leesa's hybrid mattress is not only recommended by experts, experts choose to sleep on it too. try it yourself in any west elm store. or order online and we'll ship it to your door so you can try it risk free. the leesa hybrid is american made. built to last. and, because everyone needs a place to rest, we donate tens of
4:30 pm
thousands of mattresses to those in need. experience the leesa hybrid mattress. right now, it's on sale. order today. go to leesa.com. mark: i'm mark crumpton with bloomberg's first word news. new hurricane warnings and watches have been issued for eastern canada as hurricane dorian crawls up the east coast. tropical storm warnings have been issued for parts of maine, massachusetts, and delaware. the u.s. national hurricane center says hurricane conditions are expected in eastern nova scotia on saturday. the storm is moving away from north carolina's coast after making landfall early this morning on the outer banks. new york times reports that the white house is considering a plan that would effectively bar refugees from most parts of the world from resettling in the united states.
4:31 pm
the move reportedly would cut refugee admissions by half. this would be a more than 70% cut from where it was on former president barack obama -- when former president barack obama left office. someone please to use the findings of a federal investigation into the school handling of sexual assault complaints against the campus as "a blueprint for action." today, the university's board of trustees met a day after the federal government ordered michigan state to make sweeping changes and pay a $4.5 million fine after determining it failed to adequately respond to complaints against dr. larry nassar. role as msu'she 21st president, i knew we had much work to do. i hope you find my administration is committed to taking the action and making the changes necessary to address the weaknesses and failures of the system and of people who intentionally or not failed to
4:32 pm
address the root cause. mark: yesterday, two department of education investigations were concluded at michigan state university as it received the fine. the former zimbabwe president who took power when the african nation overcame white minority rule and held onto power for 37 years is dead. he was 95 years old. his rule began with promise as a coming collapse in human rights violations increased. ofoften violent takeover huge tracts of land made him a hated figure in the west and a hero in africa. his successor acknowledged mugabe's place in the country's history. and fighter.ist
4:33 pm
legacy on the collective rights of africa and africans in general. mark: the president declared mugabe a national hero, the countries highest posthumous honor. global news 24 hours a day on air and at tictoc on twitter powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. powell spoker jay from zurich earlier this afternoon, straddling the line between addicting continued moderate growth or an economic downturn for the u.s. and globally. forhe most likely outlook our economy remains a favorable one. with moderate growth, a strong labor market, and inflation moving back up close to the 2% goal. all of that said, there are significant risks and we have been monitoring those including
4:34 pm
growth,global uncertainty around trade policy, and persistently low inflation. joe: for more, i want to welcome at bank ofson america merrill lynch. thank you very much for joining us. absolutely extraordinary week in your world. everyone coming back from summer vacation to find yields way lower than they were in the middle of summer and rushing out to borrow. what way is the primary impetus to do it now? is it just cheap and might as well take it? hans: there are a number of reasons. actually, this always happens the first week after labor day. it is typically this is the week of the year. this time, as you mentioned, interest rates had collapsed so companies had the opportunity to enter at an extremely low interest rate and that is what they have done. what is enabling this is the demand-side. there is a huge amount of demand for global corporate bonds.
4:35 pm
romaine: so with the idea that we are played catch up because we had the slow august period and everyone piled back in, or is there a more direct correlation between what has been going on and the rates market? hans: i think there is a little bit of catch-up because of the volatility in august. i think that is a good point. but what is really enabling this is the fact that there is a huge amount of demand for corporate bonds. the reason for that is the collapse in yields. we know that interest rates have declined a lot in the u.s. but if you look outside of the u.s., yields on sovereign debt are pretty close to zero. that is pushing a lot of foreign investors to the u.s. corporate bond market, which is enabling companies to issue bonds. caroline: because you would have thought corporate bond issuance would have helped europe to a certain extent given the negative rates over there. times are really good to be borrowing. is there a lack of demand at the moment and therefore it is because of the yields that it is
4:36 pm
nominated? hans: no, actually i think the global bond market is seeing a lot of issues. caroline: $150 billion. hans: and half of that is in the u.s.. a lot of issuance in europe as well. i think when foreign investors look at the european corporate bond market, that is one of the few areas they can get a little bit of yield outside of the u.s. it is really sort of lots of demand for bonds globally. part of that is the u.s. corporate bond market and the need to get dollar yields. joe: in your view are the spreads that investors are being offered for this high-grade issuance adequate compensation for whatever credit risk they are taking on by going beyond treasuries? hans: i think so. the thing about most of this is it is investment grade. credit losses in investment grade tend to be very small. in the order of 10, 20 basis points per year. right now, spreads are 125 basis points, so you are certainly getting compensated for credit
4:37 pm
risk. maybe not always like liquidity risk, but certainly credit risk. if you do the wealth evaluation as a foreign investor, whether you buy the german year bummed you take -- german year bond, you take a risk. i think it looks very attractive. romaine: i know you focus primarily on bonds, but how do you reconcile what we are seeing in the below investment grade market, which is also still seeing a feeding frenzy there? a lot of companies junk rated coming to market and having no trouble offloading whatever they are try to sell. hans: i think the high-yield story is a little more complicated. right? in high-yield, you have credit risk. i think that is definitely a lot of demand for higher quality high yields. double reasons, some single reasons. we have seen that. once you get to triple c's, we
4:38 pm
have seen very little issuance because that is where you have credit issues they need to work their way through. some companies will have to default. caroline: what are companies most arbitrage at the moment? there was always the underlying issue of how much you can take exposure in the end or whether you hedge that out. are u.s. companies able to dine out on the fact that they could go to other currencies, other bond markets that have negative yields? hans: so u.s. companies can issue a broad and lower yields, but if they want to hedge their issuance, it a little expensive. from the perspective of the company, interest rates are low no matter where the issue. a lot of u.s. companies, you know, they value being able to diversify their funding basis into other countries. joe: what are they doing with all this money? is any of it going to -- one of the goals theoretically of
4:39 pm
monetary policy is making things cheaper and refinancing and have more money. but is it actually going to do anything for the real economy? just going to be buybacks? what do you see? hans: most of what we saw this week was refinancing. these are companies that have debt maturities the next few years, commercial loans. they tech the opportunity to trimmed that into the corporate bond market, at attractive levels. we have not seen much of it linked to or things like that, if that is what you have in mind -- to capex or things like that if you have that in mind. caroline: coming up, the ceo out of the merchant space. this is bloomberg. ♪
4:40 pm
4:41 pm
4:42 pm
a look atime now for what stories are trending across the bloomberg universe. terminal users are reading about the special advisor to boris johnson who attained the limelight is one of the most controversial figures in british politics and the men many conservatives blame for the latest chaos over brexit. fires have turned their on him with john major demanding he be dismissed. tictoc on twitter is reporting the samsung galaxy fold is back after a month long delay caused by a defect in its original design. the redesign involves stretching the protective film to wrap around the entire screen. the chain makes it possible to peel off by hand. $800 -- $1800.00 a story about beyond meat and it
4:43 pm
could be smaller than that of alternative milk. holland, it brian was initiated with a sell rating, saying they are fewer people that have to find an alternative to edible meat then compared to consumers who are lactose intolerant. follow the stories on bloomberg.com and on tictoc on twitter. joe: international flavors and frequencies is all in on plant-based protein. the company is seeing a lot of demand as fake meat continues to grow in popularity. ceo andreas fibig sat down with ed hammond to discuss what he is excited about the opportunity ahead. andreas: what we see right now is that some of our customers are not growing as fast as they probably have wished for, but what we see in our r&d facilities is more and more of
4:44 pm
our customers are showing up looking for innovation to reinvigorate actually that growth. what we see in our business is very strong on business. we have solid growth in the single digits. we saw a little bit of a different story on the pay side. we believe that will come back in the second half of the year. plant-based proteins, fake meat, whatever you want to call area that seems like an you are very well positioned to take advantage of. see a lot of it throughout flavoring and texture rising fake meat. how do you put into that, firstly? i would love to know how big you think it will get? andreas: absolutely. plant-based meat products is becoming more and more important. i would say it started in the u.s. we talked about beyond meat for example. you see there is a good demand
4:45 pm
for it and more products coming on. now it goes into the chicken space. we see it from the global perspective that western europe has just become interested in it as well. we just invested in brazil. you see a bit of a global trend. we believe it can be eventually very big. because if you look at from the sustainability point of view, we cannot feed the world with meat, chicken, and fish any longer with the growing population. so you need different sources of protein. plant-based protein is a very good solution. our role is to help our customers design the products, to find the right flavors which we really like, and find the right texture that we really like to eat as well. so eventually i can be a pretty big product going forward -- so eventually, it can be a pretty big product going forward. ed: you don't think it is going to be a fad for a year or two and then we go on getting steak or pork? andreas: i don't think so because with the glowing population around the globe, it
4:46 pm
is the demand from alternative source. ed:ed: let's talk about deals. you did a significant deal for the company, integrated mostly now. there are some other assets in the market that you can be linked with. is that one that would potentially be of interest? andreas: right now, we are very focused on integration. we have to make sure we execute very well, that we find the right cost savings. we are on a very good path. we just announced the increase in our numbers and energy saving from $35 million to $40 million for this year. we really have to make sure that we capitalize to sell some of their adjacent businesses into our legacy customers and vice versa. we believe there could be a lot of value going forward. ed: more firepower to do other deals. andreas: that is true. ed: with that business, that looks like a good fit on paper. andreas: it is a good business. but timing is important as well.
4:47 pm
caroline: andreas fibig. now a quick check on the latest business flash headlines. after a million bet losing streak. the billionaire invested last year. this year, shares are holding up 47%. the xfone itself return more than 54%. promptedsts that have a downgrading of hong kong for ,he first time since 1995 double-a and double-a plus with a negative outlook. in hong kong, the airport has told protesters "give us a break," asking protesters not to target the transportation hub. in a halfpage ad, the airport theded "spare others from
4:48 pm
for the destruction." that is your business flash. tackling brexit. we are looking at boris johnson's drama filled week. this is bloomberg. ♪
4:49 pm
4:50 pm
>> i want everyone to know there are no circumstances in which i will ask brussels to delay. >> we must come together to stop no deal. this week could be our last chance. >> i don't want an election. you don't want an election. let's get on with the people's agenda. >> the ayes to the right, three to 28. the no's to the left, 321. [applause] >> not a good start, boris.
4:51 pm
>> the public will have to choose who goes to brussels on october 17. take this country forward. first ine bill through in order tovent -- take no deal off the table. >> the idea is to become the first leader of the opposition in the democratic history of our country to refuse the invitation to an election. >> the offer of an election today is a big like the offer of apple ii snow white from the queen. -- apple to snow white from the queen. >> the nation has not obtained the majority required under the fixed term parliament act 2011. >> can you make a promise today for the british public that you will not go back to brussels and ask for another delay to brexit?
4:52 pm
>> yes. >> sorry. .> i would rather be dead caroline: that was the week that was. u.k. prime minister boris johnson, a wild one. i'm british. you are british. we are baffled. everyone else around the table. [laughter] >> we do put on a good show. caroline: where does the show go? >> we are going to have a general election, and it looks as though there is no way boris can stop the opposition. it has united enough. thatreatest advantage was it was terribly divided. he overplayed his hand and forced them to get together. it looks very clear now they are not going to let him happen election until after he has extended brexit. until he has asked for an extra period. joe: just to be clear, there is
4:53 pm
no way an election can happen without the boats. is that correct? john: thanks to a change in the law under david cameron, you now need 66% of parliament to hold an election and labor has 38%. joe: compelled therefore in the absence of an election to either askg a deal to the table or for an extension, there is no third option for him? john: there is conceivably the third option that he can say no, i'm not going to do that, i'm not going to tell the queen about this bill that parliament has passed. that would be interesting. i don't think he could do it. but we have said that about quite another number of things about brexit. assuming he does not try to come up with some reason why he is entitled not to tell the monarch about this bill that parliament has passed, and i'm nervously going to make that assumption that he has no choice, he is compelled to do that, either come up with a deal, which requires someone else to 10 go
4:54 pm
with him, which they are unlikely to do at this point one suspects, or ask for an extension. romaine: if you have an election, does that become a backdoor second referendum on brexit? or is the election going to be broader than that? john: that is the interesting thing. last time we had an election, theresa may appeared to be leading in the polls convincingly and the idea was there was going to be a brexit election giving her the mandate to get the job finished. antead, jeremy corbyn made extremely good left populist campaign saying this is about the many, not the few. lots of people found that very attractive and decided they were not going to vote on brexit. they were going to vote on giving the establishment the kick. it is conceivable that is what happened again. plainly, boris's great hope, and i do not know where he miscalculated, whether he had forgotten they changed the rules, that he needed 50%
4:55 pm
instead of 66%, i don't know. but he thought he could call an election straightaway and make it an effective referendum. and he can't. caroline: what do you think the eu is looking at any of this about? john: the eu is ever more horrified and amused by the ridiculous way in which our wonderful country is behaving as far as i'm aware. i don't think boris johnson has very much political capital. i don't know who is eventually going to be prime minister by the end of this year. very hard to imagine we will get through the entire year without a general election. whoever is the prime minister at the end of this year will have to strike some kind of a deal. caroline: the markets seem to suddenly be thinking jeremy corbyn is not all that bad. even though initially the thought was he was horrendous. john: i do not know if that is the case so much as the soft brexit or even know brexit plus jeremy corbyn is slightly better brexitrd-core no deal
4:56 pm
plus boris, who seems to be off his rocker anyway. i can just about go along with that. d 4t we have been price -- the pound has rebounded this week. they are delighted by the rising prospect of prime it is to jeremy corbyn. it is because they are pleased that boris has not been allowed to will go through a no deal. caroline: fascinating times. john, i'm glad to say you will be back with us. john: looking forward to it. caroline: next week, aside from the brexit fiasco, the ecb will announce its rates decision. joe: and a narrow field of 10 democratic presidential carrots will be debating in houston next week. romaine: don't miss this. apple unveils new iphones. caroline: that is all for "what'd you miss?" romaine: "bloomberg technology" is up next in the u.s.
4:57 pm
joe: have a great evening. this is bloomberg. ♪ we call it the mother standard of care.
4:58 pm
4:59 pm
it's something we take personally, and believe in passionately. it's the idea that if our mothers were diagnosed with cancer, how would we want them to be treated? that's exactly how we care for you. with answers and actions. to hear your concerns, quiet your fears, lift your spirits. with teams of cancer experts and specialists, delivering advanced treatment options and compassionate support every step of the way. all here in one place, with one purpose. to fight your cancer, together. that's the mother standard of care. this is how we inspire hope.
5:00 pm
this is how we heal. cancer treatment centers of america. appointments available now. ♪ >> i'm taylor riggs in new york in for emily chang. this is "bloomberg technology." coming up in the next hour, textron. u.s. tech jobs stand up in an otherwise disappointing august jobs report. we will explore where the jobs are and what skills are in demand. plus, warning. says this is have struck people who

15 Views

info Stream Only

Uploaded by TV Archive on