tv Bloomberg Markets Americas Bloomberg September 21, 2017 2:00pm-3:30pm EDT
7:00 p.m. in london. i'm scarlet fu. julia: and i'm julia chatterley. welcome to bloomberg markets. ♪ live at we are bloomberg world headquarters in new york over the next hour. here are the stories we are covering. president trump is ramping up the pressure on north korea, ordering new sanctions to deal with the country. china's central bank is also adding to the pylon. and health care reform extending beyond capitol hill. 32 states that expanded medicaid money on these proposal. governor john hickenlooper tells opposest why he the graham-cassidy belt. push to disney's streaming means for the nhl. markets close in about two hours time. let's look at how stocks are trading with taylor riggs. for thea little lower
dow and s&p, but we are still close to those highs, at least -- the nasdaq down almost a quarter of a percent. the biggest loser in the nasdaq and its competitor was to be in talks with tesla to create a chip for autonomous driving. i want to turn to the base metals. we have stronger dollar than yesterday, weighing on the metals. that is continuing a little bit today. some of these companies. this was the highest price since ♪ as aluminum prices were from bloomberg world surging. nucor ceo discussing headquarters in midtown manhattan, this is bloomberg markets. i'm scarlet fu. taking action against unfair commodity markets closing in new
york, select highlight some of imports. i wanted to touch on the dollar, because we heard from janet today's notable movers. yellen yesterday and are holding -- gainsgames is gains gold falling back below $1300 $1293 andw at for the stronger dollar, and really holding in there higher rates. change. continuing to see that. moving on to gas, that gas it up withand wrap moving the most in two months, awful most by 5%. inventories falling over the bitcoin, i will send it back to you. julia: let's get a check on the past week, expanding the supply got that is out there. first word news this on to oil, wti afternoon with mark crumpton. mark: president trump has bouncing around today. it has been up, down, and is ordered new sanctions on individuals and companies doing down now by 2/10 of 1% as opec business with north korea. this increases pressure on wrong is monitoring a technical yang to discontinue weapons programs. committee meeting in vienna. at aresident was speaking the climaxes tomorrow, and so far attendees have sent mixed signals about whether production cuts will be extended. luncheon with the leaders of japan and south korea. when it comes to open its theseesident said response, this chart illustrates measures are intended to disrupt the north korea and shipping and straight networks by targeting a key dynamic at work here. entities that do business with -- opec's response, this chart pyongyang.
in mexico city, they are racing against time to wrestle you -- illustrates a key dynamic here. rescue a 12-year-old girl you can see the steep drop off at the end of 2016, when opec agreed to reduce production. trapped in the rubble. she says that five-year-old -- the blue line represents u.s. five more students could be trapped with her, but it is production. you can see the drop off there, unclear if they are still alive. that girl has been there for more than one day since the and that dynamic continues to keep a lid on oil prices. julia? earthquake. shale, opecing of the death toll is now 245. dynamic continental resorts ceo is warning the united -- resort's ceo harold hamm states and will retaliate spoke to alix steel in an against american backed fighters exclusive interview. in syria. russia has accused the fighters she asked about the eia of firing on government troops prediction that shale production battling for territory. will reach a record high russian special forces are . fighting alongside syrian soldiers. the defense minister said any >> they came in and were talking to all the producers across the further attacks will "immediately meet with retaliation." u.s., but they were flat wrong. eia was flat wrong. people were very disciplined across america, the producers a formal warning has been were. delivered to the u.s. regional they had cut back. headquarters in qatar. obviously, the price fell when been declared a nigeria and libya came along disaster area after hurricane with about 400,000 barrels the island.ed
unexpectedly in april through june. hundreds of homes have been destroyed, and officials say it the price fell a good 20% might be months before people through that amount of time. get their lights turned on. president trump plans to visit so operators cut back and eia puerto rico to assess the damage. he spoke about the devastation did not recognize that, and kept while meeting in new york with predicting that we would be close to 10 million barrels by iran's president. the end of the year. an very, very,is very tough shape. their electrical grid is destroyed. it was not in good shape to so a lot of people went to work start off with, but their and came up with calculations electrical grid is totally that showed they were about 100% destroyed. off. so some 500,000 barrels. so many other things. we are starting the process now, so really, we look to the and we will work with the governor and the people of numbers by the end of the year and it would be a rush to get , there. that was about 9.35 million puerto rico. barrels by year end. mark: global news, 24 hours a day, powered by more than 2700 journalists and analysts in more so that is a big miss. than 120 countries. so we met with them, showed them i am mark crumpton, this is the data that we had, and they bloomberg. scarlet? have corrected some of it. ofrlet: obviously, a lot we have had an increase in price work still needing to be done on as a result of that. the ground in puerto rico. later we will look into the but still, they are way off, thencial angle of some 360,000 barrels high for this year.
disaster. as mark mentioned, donald trump announcing's executive action alex: they are significant when that expands u.s. authority to we are in and oversupplied target individual companies and market. when you talk to most ceos they banks that finance or facilitate , say everything is fine, i am trade with north korea. drilling as we have always drilled, we may have had some pres. trump: our new executive stumbles but 2018 will be order will cut off sources of awesome. revenue that funds north korea's you do not see it that way. you see drillers doing something efforts to develop the deadliest weapons known to humankind. different? mr. hamm: the new normal is that we have capability of producing a whole lot. the order enhances the treasury but we have to get return on department's authorities to investment, and operators like target any individual or entity myself and others realized that they have to have returned that conducts significant trade through shareholders. in goods, services, or technology with north korea. so you are not just going to go more, let's go to out there and drill in an environment that you cannot make kevin cirilli, our chief washington correspondent in our a decent rate of return. d.c. bureau. let's give us a sense of what so that is where people have expand u.s.eans by been this past quarter, and this year. we noticed that in the second authority? quarter, basically took a reading of all the public companies and found out that kevin: first off, the president saying that they are going to use sanctions to discourage numberd cut capex and foreign businesses from doing
business directly with north production was down for the korea, but he thanked china's two, second quarter. all the public companies have president xi jinping for saying reported. alix: i want to pick up on what that china has also taken you said about returns, because we were talking about a buyback after the bell yesterday. the idea that there is growth at any cost is no longer the story. action as well. there is some discrepancy about it will be about returns, what exactly the chinese have getting balance free cash flow. done in order to supplement what the united states has done, but meeting, chinaal is continental doing the same kind of thing? mr. hamm: certainly we are was essentially the elephant in interested in rate of return and the room that was not there, it as well but a making money for the shareholders, and we are doing everything to position our company to do that. four-part meeting because of the we have done that over the past influence china has exerted. three years. but the larger takeaway -- we heard this from japanese prime but you know i said that prices minister shinzo abe , under $50 were unsustainable thinking trump as well as the and building new supply in a world. that is basically what we are seeing today. united nations ambassador nikki haley directly for their efforts so yeah, we are looking at every on this. angle to make sure that we have the united states is very much still leading the effort on a rate of return through the -- to the shareholders that this, more so than any other countries. julia: we will hear from nikki makes sense here at continental. haley later on, but you pointed alix: so at $50, would you see a out that the critical point is dividend or buy back before you put more money into capex? at the moment, we are not quite we have some great sure what china's involvement is here. be a huge step forward
rate of return projects, and i believe that this price below between the united states, china, and their coordination to $50 is very short-lived. we are seeing it about $50, and i think it is sustainable. take on north korea. but we are seeing inventories kevin: let's be blunt. come crashing down, coming down faster than they have over the treasury secretary steven mnuchin has taken on chinese financial institutions head on, last two years. saying if you are going to do it is correcting, as we see it today. business with north korea, you have a problem with the united aids. but you know, this oversupply case in point, the bank in date on -- united states. that eia is talking about isn't case in point, the bank happening. the market has to realize that there. we'll is talk about north korea's top trading partner and it is distorting, it is making it tough. but also between you talk about putting america first. lacking world prices the u.s. agreements with not only china, but south korea. by six dollars a barrel that is the united states is very rounds of the latest , not putting america first, that is putting america last. that is the result of this exaggerated amount that eia has out there. the united nations meetings pressuring the south koreans as well, saying look, we will have and everybody pays attention to them. your back on north korea, but we they are supposed to be the need you to step up to the plate as well. ultimate authority, if you will. we willreat point, and
hear from steven mnuchin and donald trump later on in two nikki haley. let you gonot without asking you about politics. do you feel like the trump administration is the filling is promised supportive of the oil industry, and if so, what specific things has he been able to do that have helped you? harold: first of all, cutting let's bring in bill cohen, who all of the ridiculous regulations on our industry. is following the impact of maria when you look back and tally and irma, which ravaged puerto i meanwhen you look back and tally, them up, there were some rico just two weeks ago. ray to have you on the show, bill. i have seen some estimates trillion dollars of bad adjusting the caught that cost regulations on this industry. and there's a lot of them still will be 10 percent of gdp. in place. so removing those, correcting the prior administration this is, in any amount, something the country cannot afford. puerto rico obviously was basically wanted to put us out of business. this administration saw it as a driver for this economy, putting already in very tough financial, economic conditions. some $80 billion of debt it was trying to restructure, trying to get out from under. people back to work, and jobs, this is not going to help in any putting americans first. way, shape, or form. julia: we are talking to the we are seeing that happen. -- in the electricity this is the 43rd day that we have had record highs with the
grid as well. dow, the market. they are also operating on the so trumponomics works. fact that -- conditions as it is working. well. so trump rally that we talked bill: this is been a long, long about, it has become much, much more than that. saga with the puerto rican was continental electric power company. there was a restructuring plan been fullyut had not resources chairman and ceo harold hamm,'s geeking with alix -- speaking with alix agreed to that would have given creditors something like $.75 in present value. now those bonds are trading at $.55, that deal is off the table. steel. let's get you a check on the first word news with mark company is, the crumpton. the trump administration has announced new sanctions against north korea. speaking ahead of a working lunch with the prime minister of basically operating in an equivalency of bankruptcy now. japan and the president of south korea, president trump said he is using his authority to go a new restructuring plan has not yet been proposed. after banks that do business with the north. is all butcal grid pres. trump: our new executive order will cut off sources of destroyed, as president trump revenue that funds north korea's efforts to develop the deadliest said. people do not have electrical weapons known to humankind. power, therefore is probably no revenue. people do not have any power. ood time to be a the order enhances the treasury bondholder. timing is an departments authorities to target any individual or entity that conducts significant trade
services, or opportunity matter how you look at it. my question is does the strategy -- tragedy prompted a greater effort restructuring? technology with north korea. it has always had the president said that operational difficulties. china's bank is also ordering it's plant is somewhat financial institutions to stop dealing with kim jong-un's .ntiquated, it needs an upgrade regime. reinforcements are searching the one of the things on the table collapse wreckage of a school in mexico city, where they are was to improve the plants, to trying to free a trapped girl that usesto a company and other survivors. the remains of the building had dangerously earlier natural gas as opposed to gasoline as a source of power, and improve the grade. today, prompting some rescuers scarlet: but that did not happen? to evacuate the top of the pile. bill: no, because the the death toll is now at 245. restructuring plan was drawn and officials say that a case from did not happen. the group was severely damaged as a result of this disaster, nursing homeom a which could not have been foreseen. it could not have come at a worse time. if everybody just stepped back that lost its conditioning in florida related to hurricane irma is dead. and realized that now this is an this state of florida has opportunity to repair the whole suspended the facility's license thing and do with the right way, i think this would be an while the owners have stewed the opportunity for some investors state -- sued the state for the with some guts to go in there and buy the bonds at prices the actions.
slow or lower, and participate the attorneys are conducting a criminal investigation. in restructuring. julia: but it is also about the and the heiress to the law real cosmetics empire has died. federal oversight board, who eal cosmetics empire has rejected a 9 billion dollar restructuring plan, we'll look at this as a blower opportunity? bill: there is no denying how died. is inating the situation lillian bettencourt owned about one third of the company's shares. regard to this company and the power situation. sometimes it has to get really global news, 24 hours a day, bad before creditors see what powered by more than 2700 journalists and analysts in more than 120 countries. they need to do to make it better. i am mark crumpton, this is bloomberg. scarlet: at some point everyone will work together. n, bloomberg tv julia? facebook ceo up, contributor. coming up, we will speak with mark zuckerberg is not just a business leader and a dad, he one of the governors who also has had a political opposes the new effort to repeal awakening of sorts. the question is, will it leads to the white house? we will discuss from new york. this is bloomber? obamacare. governor john hickenlooper from new york. this is bloomberg.
♪ time now for our sector julia: this is bloomberg markets. i'm julia chatterley. scarlet: and i'm scarlet fu. julia: the latest republican report as well as the stock of the hour. joining me now to talk about how attempts to repeal and replace obamacare faces a crucial the tech sector is faring today deadline looming next week. is abigail doolittle. legislation by senators all caps abigail: we are taking a look at city of louisiana and the technology etf, because it is down for the second day in a lindsey graham of south carolina row. this is the today chart on where would repeal parts of obama's we see the decline, and this health law, giving blog rates to stands out because tech is the states block grants to best sector on the year, up more than 20%. it is the sector that investors to design their own programs. have been looking to this year, so a lot of leadership there. joining us now is governor john it now, after the fed and the tone,ng to a more hawkish hickenlooper of colorado from denver. they are being a bit cautious thank you for joining us. here. i know that you will be firmly that is interesting to note, against this plan, and i know you think a bipartisan way especially because some of the clients are coming from chips, amd.nvidia and forward is the best way to tackle this. but first, i want to ask you bitcoin is also down by more whether you believe the senators that right now are willing to vote yes to this can accurately than 6%. so the fact that the fed is quantify the impact on their individual states enough to pulling back is causing bitcoin to adopt -- drop to some degree
justify a yes vote here? yes or no? gov. hickenlooper: looking at today. let's take a look at chinese internet stats -- stocks. the independent assessments of all the different states, it is hard to see a logic that this is going to strengthen the health america.em within they offered estimates below consensus, and that seems to also be weighing on 90's -- certainly within colorado, it would be about $1 billion per netease. year out of our system. julia: so why are they going to vote for this? gov. hickenlooper: in some apple is also down for the second day in a row, the biggest cases, it is a political decline june 12. promise. in some cases, it is a feeling commentsd be due to that no matter what, we have to dramatically reduce the amount of money we're spending on from analysts, who says that he health care. believes the iphone 8 preorders i think a lot of us feel that were weaker then they were for the answer is somewhere between you cannot always do everything the six and seven. basically, he says there could be a miss. in a campaign that you promised. he says it is hard to calculate, at times coming have to look at compromises to create a but 100 25 million units by the stronger, better system. end of the year -- he thinks it will be closer to 100 million take the changes you are units. proposing and make sure they do that is a pretty big mess. improve the system. scarlet: when it comes down to the bottom of it, no matter how he says a lot of the weaknesses coming out of china. you funded it, we need to come
up with new incentives for persuading younger and healthier this big reason is because apple people to buy insurance without has this huge dependence on the the current individual mandate. iphone. so we see that starting to taper accordingle bit more what are ideas floating around on that? to rosenblatt securities. my understanding is that you are bipartisan proposal doesn't , thankgreat to have you necessarily address that? gov. hickenlooper: our you. is mark zuckerberg running for president or not? bipartisan proposal doesn't -- hiseems to be contemplating we focus on the cfr's, make sure we have an insurance program political future, even though he that can work. has not figured out the political present. the trick about -- it is a, you can read all about this in making sure, the new issue of bloomberg businessweek. sarah, has there been a more they join and stay in short, but also the people who are healthy, pivotal moment here for mark they do not need insurance, all zuckerberg, just in light of of a sudden they get cancer, really sick, sign up, get health some of the comments being made about the global reach that facebook has, but also the insurance, and as soon as they threat to democracy it poses if are through with their procedures, they get off the health insurance program. being used as a tool? flyersypes of frequent are very -- they come in, cost a sera: it is absolutely a pivotal time for facebook right now. lot of money to the system, zuckerberg is at the center of raise everyone else's premiums. it, wondering about the company none of us like to force the
of the effect on society, and is popular-- it is not a not so much taking blame as thinking well, we have a idea with anybody. it just seemed to be the best platform that kenexa least thing at the time. people. maybe there is some kind of maybe we could have a combination that we can look at technological solution to this. it is interesting to see how so we can implement more severe zuckerberg addresses the penalties when people want to failures, the maybe failures of suddenly rejoin health insurance anduse they had a sickness, facebook with the solutions being more facebook, more ways even with young people to be able to show them maybe there is to connect you with people you a way to give them a bit of a do not know, to build empathy, subsidy to make it more attractive to them, make them facebook groups is a huge priority to him. feel like they are in short. so he is thinking about this insured.-- in short -- from a product perspective, but also in terms of his image. he has gone around the country the question of to meet people in various states he has never visited before, and says this is all because he including people with pre-existing conditions has come up again with this argument. wants a broader understanding of the president said he would not how people use facebook, how they interact with society. sign graham-cassidy if it does scarlet: he has met with the not include coverage of flyover states and interacted pre-existing conditions. others have said that it does with people, and they are not address that at all, but punts it to the state. documenting it. how is he rubbing off on them? this a way for the oval
sara: he is taking an approach of very careful, lot of the office to push things to the states, making promises on their candid butvery i amf? gov. hickenlooper: not sure it is just the oval office. i think this is a significant professionally done, everything transfer of cost, a massive cost is curated by a team that helps shifting from the federal him organize all of this and government to the state. in terms of pre-existing think about what he wants to conditions, it is one thing to say you have to make sure that say. he has certainly become so much pre-existing conditions will be more political. it is really interesting, because in the past -- i have covered, that we will not shall you-- tell you how much covered facebook for a fusfew should charge, or once you have a sickness, you cannot raise the years now. in the past, they have taken a rate. that is crazy. neutral perspective -- we are that is not allowing people to just a platform. get insurance with pre-existing there are good and bad people on conditions, because they will get a price that is completely every platform. wants to allow people to connect astronomical, unaffordable. -- we wants to allow people to there are ways you can say well, we are honoring pre-existing conditions, when in fact you are not. julia: do think this bill will connect and do what they want to do. it now zuckerberg seems to be taking a stand on what facebook pass, bottom line? should be, and saying it should be a force for good in the do you think they will profit? world. -- pass it? if you say something like that, you have to live up to it. gov. hickenlooper: if i look at and all of these issues -- russia's spending ahead of the
the tea leaves, i am talking to trump election and all of these a lot of people in washington things that show that facebook that seems like there is a 50-50 chance it could pass. may be has some moral and i would like to think it is a ethical blind spots that it long shot because it is so needs to address on its platform. so there are all of these harmful to the system. interesting issues surrounding i would like to think that mark zuckerberg at it time when he feels some more possibility senator alexander, senator than he really ever has. murray would work on bipartisan solutions primarily right to julia: great to chat with you. stabilize the private market, but they are also looking at itid want to ask you how some of the things we can do to control costs systemwide, like felt to be wrapped over the how to we get more transparency? knuckles by mark zuckerberg, and how do we make sure we are not if you want to know what happened i would read the just paying for quantity, but we article. up, the coming will start really requiring quality for compensation? those kinds of things long term inaugural season of the vegas not only help medicaid, the golden knights, and hitting the ice in china. small private markets, but it will help everybody in the of mys all part conversation with gary dedman. this is bloomberg. health care system in the country. scarlet: i am glad you bring up we have seenp, some instances of that in washington of late. the president teaming up with chuck schumer and pelosi. -- do you trust his
reach across the aisle? was this for real? gov. hickenlooper: i think you have to trust bipartisanship. country,racy in our the relationships between the white house and congress, and all of these states which are in , it dependsvereign on a certain level of bipartisanship. one of the things we have been pushing for -- governor kasich and myself, this is in alliance -- an alliance a republican dan democratic governors saying let's get back to the hearings, let's try to go back to the way , becauseo make laws that seems like a better system when right now, it is one party or the other trying to force something through. working with think the president helps the democrats in terms of their identity? a lot of people believe the party itself has an identity crisis. would you agree with that? certainlynlooper:
when democrats work with the a number ofere is people that have such animosity, who are so angry at a variety of reasons that those democrats are going to lose some support. that is just a reality. i do not think it means you should not be finding ways to reach out and build some kind of compromise. .ook at daca president trump is serious and is willing to sit down, roll up his sleeves, and help figure out how these young dreamers can legitimately -- they have no other country. they have grown up in america, they are americans. if there is a way we can give them a future rather than having the live outside the shadows, let's do it. if it takes republicans and a little each giving to work with the white house, i do not have a problem with that. youa: we have talked to ♪ about this before, reaching across the aisle, but what we have had in the past few months scarlet: hockey season officially begins on october 4,
has been a very divisive moment. but there is plenty of action on charlottesville is one that pops up. the ice already. one team to watch is the las vegas old and night. the expansion team is looking to expand its pre-winning -- is there anything here that would make you look at this and say you know what? preseason winning streak to three games. i sat down with a discussion -- i need to make a stand here. to a discussion with gary if being a candidate in 2020 is bettman, and asked him what he did to put the knife in a -- the the answer, that is what i will do. knights in the is there anything that will bring you to the table here? gov. hickenlooper: right now -- and as i said to you before -- i most competitive position as have about 15 months left, and possible. >> we wanted them to be more competitive than previous my focus is to take some of the things being worked on expansion teams. we did not want fans to wait 10 years to see better hockey. in colorado and make them a model for other states. the minute i started talking our hope is in march, they are about 2020 or and or other -- or any other future plans, everyone still playing games. of thepast, some is distracted. expansion teams, by new year's, and put it health care right now, or daca. or thinking about the future. these are issues were i do not mind speaking up, but i have to the knights have a great fan keep my focus in terms of health care -- every time we talk about base, a great arena, a great one proposal or another, we are filtering it right through owner, and we have good expectations for the franchise. it will build over time, but he colorado, and how is this going to affect colorado? has put a good organization in able to change place and they will bill the
right way for the long this to make colorado healthier, in some ways you are that is term. scarlet: the first game they where i need to keep my focus for now. i'm noticing though that -- she is 5'9", and like your partner in the bipartisan bill option here, john kasich, you are not denying it. we will note that. he is incredible. smallers this rise of governordemocratic scale players mean for your effort to make the game more john hickenlooper, thank you for joining us from denver. accessible and expand the the colorado governor there. footprint? we will tell you about teslas $1 >> when we change the rules, at billion -- this luxury carmakers the same time we have a system that enabled all of our teams to $1 billion plan to battle with be competitive, emphasizing tesla on its home turf. speed and skill is what we want to do. we took the clutching, grabbing, the hooking, the so-called obstruction out of the game, and think it has made a difference. extraordinary competitive balance. last season, 17 made the playoffs -- seven teams made the playoffs that did not make it the year before. once you make the playoffs,
anything can happen. scarlet: you call it competitive balance? >> yes. to the footprint in the u.s. to the footprint in asia, tyler wong will unfortunately not be in the exhibition game nhl is hosting. of a multiyear deal with ord packaging. what is the nhl's bigger strategy here on the mainland? >> we are on television and streamed in over 130 countries, and we know there is a priority and appetite in china, a priority set by the government in anticipation of the winter olympics in 2022 to have 300 more people participate in winter sports, and we are working with the government at all levels to help develop the game, and an important component of any international strategy is having big events. by having the los angeles kings in the vancouver canucks
shanghai, we will start feeling that interest and making people more curious about the game. scarlet: you said the government's goal is to build this national hockey team? >> and have more people participate generally in winter sports. scarlet: have they asked you specifically for any kind of help? >> we have agreed to help them. we put out a number of clinics already. the last time i was in beijing, which was probably two or three months ago, i met with a number of evil, including the minister of -- people, including the minister of sport for the country. scarlet: ratings in canada ♪ julia: welcome back to bloomberg recovered last season, but they declined in the u.s.. what do you attribute this to? markets, time for the bloomberg >> viewership overall, there is business flash. some softness in ratings but spent atn maybe it was the elections, factory,benz's alabama maybe it was -- i do not know, more than one of 100 factors that everyone is pointing to. i'm not overly concerned, the move by the german automaker because the more people are watching nhl hockey than ever
will create more than 600 jobs at the alabama plant. before, and nbc sports net they will assemble electric suvs to compete directly with tesla's model x. has cut aboutnk doesn't incredible job. if i'm not mistaken, i think the playoffs did well last season in terms of ratings, and we had a 12% of its workforce. about 2500 jobs in an effort to phenomenal stanley cup final. i think our ratings for the final where the highest since we lower expenses and push started tracking on national tv technology. that is according to people familiar with the matter who are in 1994. also facing an interest wide it was the highest for a stanley lending slump. cup final it did not have an original six teams. scarlet: and it helps that the national team made it. changes tonhl make that is your business/update. from ahead, we will hear harold hamm in an exclusive address the klein -- fewer commercial breaks, better lineups. interview. he says the governor is getting its shale forecast all wrong. >> fast, exciting, continuous this is bloomberg. play. it is about scheduling and working with nbc to make sure that we are promoting and scheduling in the right ways. as i said, we have to look at the playoffs and in the regular season, some of the emphasis on
some teams that typically had given us strong ratings that did not have great seasons may have also impacted the ratings as well. scarlet: did the acquired majority ownership -- the nhl has a majority stake in the service with seat on the board as well. what is this mean for the future of nhl games? disneyink the power that brings to everything they touch, including espn, means there will be a lot more focus and effort on their streaming and on what van tech is doing, i guess espn at some point is going to create and out to stream sports content, which will probably include some of our games -- an to stream sports content, which will probably include some of our games. -- bobknown bond iver iger for a while, and i think it is in good hands. we have not had a board meeting
since the transition took place, but i think we will take some time for everyone to get their arms around it. scarlet: and the nhl streamed a handful of games on twitter last year. did it work well? better? >> i done think it is about scheduling. social media platforms that are streaming are going to create a broadcast feed, or create their own productions to target the way millennial's and jens these -- s are watching the game. it is a work in progress, but like everything coming out of silicon valley it is changing on a daily basis scarlet:. -- basis. scarlet: coming up, we are getting information on the changing stations ahead of steve mnuchin's briefing. this is bloomberg.
♪ >> we are live in bloomberg world headquarters in new york over the next hour. here are the top story covering around the world. trump taking ad bold stance against north korea with a new round of sanctions. he is set to meet with the president of turkey. then we have at the treasury secretary also set to hold a briefing in new york city. we will have both remarks five. he is not alone in his actions against north korea. the china central bank taking measures against the country. we break down how it could take a toll on some businesses in china. international ceo's is enrolled aaders on their mind, conversation that included canadian prime minister justin
trudeau at the bloomberg business forum. the close of trading, a market check with abigail doolittle. have modest declines, small the client for major averages, first time in multiple dates especially for the dow and we will look at that in a moment it is worth noting we had earlier the dow playing together an all-time high. after the fed yesterday, did outline what could be perceived as a moderately hawkish plan than some investors had anticipated. the decline for the dow may be small but it is interesting. the dow is having its first down day in 10. the dow can richter death reverses decline, it will match the last 10 day winning streak back in july. let's see if that happens. we sometimes see those turnarounds.
we are looking at the well-known shares out there, apple, verizon, and johnson & johnson. having its worst is the end of april, the recent hurricane may hurt the company's business. apple down on a bearish note from security citing the idea are iphone 8 preorders weekend vouchers weighing at 1% and johnson & johnson lower or third day and around. at any, let's look interesting chart. this is a one-year chart and a 10 year yield. going into the election before the fed raise rates last december, after the fed raised not exactly from what you imagine especially since march. this level is 2.3%.
2.3% asear yield at many strategists and experts on the street -- trumpt: president donald has sanctions on north korea and to stop dealing with the kim regime. steve mnuchin is speaking right now. let's listen in. >> i've been pleased to be here with the president. the president signed an executive order that strengthened the u.s. government possibility to cut off funding to the north korea regime and 11's development program. despite mobile un security -- kim jong-il and continues to threaten the world and his neighbors with provocative nuclear and missile tests.
president trump has his new executive order expands thesuries to enable regime's economic and 70. -- too long, north korea sanctions and the international system to facilitate funding for its weapons and mass described -- destruction and missile ballistics programs. no bank in any country should be used to facilitate kim jong-il and passes destructive behavior. new executive order will authorize treasury to impose a range of sanctions so suspending u.s. correspondent account bank thatany foreign knowingly conducts or facilitates significant to northons tied korea. the sanctions will be forward-looking and apply the behavior that occurs today when
president trump signs executive order. foreign financial institutions are on notice that going they can choose to do business with the united states or north korea, but not both. the new executive order enables treasury to freeze assets of anyone conducting significant services, ors, technology with north korea. ,t allows us to freeze assets textile, fishing, i.t., and manufacturing industries. on all countries around the world, we want them to join us by cutting off all trade financial ties with north korea and order to achieve a korean peninsula. asp president trump said in his
speech, it is time for all nations to work together until it seizes its hostile behavior. withll continue to work its allies and behaviors to further kim's reckless behavior. thank you and i be happy to take a few questions. >> can you explain how this will affect [inaudible] >> i had a very productive conversation early this morning with governor joe at the people's bank of china and how we work together. at action is directed everyone and no way specifically directed at china. we look forward to work closely with them. understand --
[inaudible] 180 days within departure from korea. is there anyway you could put a number on how many aircraft would be affected and pick a year, so if we get a sense of scale? sec. mnuchin: that is another important aspect besides asking them to block financial transactions and i am not prepared to give you a number but it is very significant. we can put actions against ports as well. >> why would this work when others failed? >> i do not think other but these areed
significant because they not only allow us to sanction individuals or entities, but allow -- allows us to freeze -- anywhere in the world and facilitate -- >> do these include north korea activities and individuals around the world? sec. mnuchin: i will never comment on future sanctions but we continue to review all options. moving this represent a -- moving path? sec. mnuchin: no, we appreciate the un security council resolution. this goes beyond it. as i've mentioned, it allows us to block any financial institution that does not follow
through on the u.n. sanctions or additional sanctions. we will do designations on a rolling basis. obviously they start with the activity today. it is not backward looking. >> can he tell us more about your discussions? >> again, the conversations are confidential but they are very productive conversations this morning. >> have they been previous negotiations at this point with the bank of china? >> no. the first time we discussed it. i called them to alert them of this given close cooperation with us.
>> some actions related today clearly separate from what they --icated earlier, >> why don't we come back to you ? >> do you believe china's --ions today reduce the need sec. mnuchin: we look forward to look -- working with them in a cooperative way. what is important is the authorities. >> can you put this in the context of the present policy speech, military action, how do these things look together and what do you expect to do in response? sec. mnuchin: i will not comment
on what i expect north korea to do. the objective is for them to and nuclearests weapons. this two weeks ago part of thell president'strategy at the u.n. this week. they took a while to actually have an impact. is there a timeline you're looking at? is forward action on this. there is voluntary cooperation but to the extent we have to cough thanks from the banking system, which obviously would be very significant, we now have the tools to do that. not make any other
comments. i am confirming i did speak with them this morning but i will not comment on other discussions. >> would you say these actions were enough today and also you call on russia to put more pressure? trumpnuchin: president has had very productive discussions. i'll take one more. question on is the largest trading partner with north korea. can you spell out how this will affect them and how it will affect u.s. relationships with regard to north korea?
this is targeted anyone whorea and wants to do trade or business with them and we appreciate the relationship with china and look forward to working with them. thank you, everybody. >> you were just listening to reeven mnuchin and the talking about the announcement on north korea, financial sanctions this time. between thessions united states and north korea, the north korea action is in no .ay directed at china in terms of where they are trying to enact trade sanctions as well as well, they're working with coast guard. ,alking about textile fishing all under this umbrella now. the critical factor is pretty much stonewalling their are to what extent is china supporting
them? also likely to elaborate on this. let's listen in. trump: a very difficult part of the world. he is frankly getting very high marks. has also been working with the united states. we have a great friendship. i think we are as close as we have ever been. a lot of that has to do with the personal relationship. so president, thank you very much. it is a great honor to have you. thank you. [speaking foreign language]
quite thank you so much, mr. president. we are here in new york and the united states, my dear friend donald, we are here and we are going to come back to the bilateral meeting as well whereby we will assess the current situation between the united states and turkey, as well as we will have the opportunity to discuss the region developing. i would like to once again thank you for the opportunity. you very trump: thank much, mr. president. i appreciate it. thank you all very much. i appreciate it. >> violence against protesters? president trump: we will be
discussing many issues. >> when was the last time you spoke with paul manafort? >> thank you. >> the president reluctant to talk further. i will reiterate we obviously had more details of steve mnuchin early on, and what the financial sanctions on north korea look like. joining us from washington is joe, author of the book, nuclear night where -- nightmare, securing the world before it is too late. the staff of the house armed services committee, and here on bloomberg's form parse -- foreign policy reporter. thank you for joining us. steve mnuchin obviously reluctant to talk about what china's involvement is. to the he has spoken governor this morning to inform him of what was going on. extent do we think that
china is involved? are you surprised they are even talking about china? >> i am not. the chinese, particularly the chinese president, are furious at north korea. h bomb test in particular, that is not what china wanted to see. they have been trying to walk north korea back from the nuclear brink even before this announcement, last week and the last few weeks, there has been talk about the chinese bank tightening up restrictions on north korea. they have already started to do these, preventing transfers, for example, from chinese banks to north korea and businesses. so no, the chinese want to do this. how is interesting is tightlipped everybody is. makes you think there is something going on behind the scenes, another shoe yet to drop. here we are. pressure, part one of the administration
strategy. new sanctions, tough talk at the u.n., but where is the engagement part? this is what the chinese want their they are willing to toughen up on sanctions as long as they think it is leading negotiations to a compromise settlement. is that something we have yet to hear, and will we hear more about that? the president gave a tease of this earlier today where he was asked if he would talk to north korea and he again said why not. that is what we have heard so far. >> what we have heard is that the situation in north korea is a focus of international attention. he urges north korea not to go further on it dangerous to russian. he said china is committed to deed nuclearization and there is a call for diplomacy to resolve the north korean nuclear issue. >> president trump talked about this idea of nuclearization as well earlier today. is that really what they are pushing for? do we still believe than -- that
is possible? >> i think it would be extremely difficult. korea'son of north nuclear state is so baked in that the idea of who they are and how they see themselves in the world, but this ,dministration cannot just say it would be impossible for them to say that we are willing to accept a north korean nuclear state that we would then contain. classically look at what donald trump said earlier at the u.n. and we look at some of the language used here by mcmaster as well. more of ake a path to military option rather than anything else. where are we in terms of to's -- diplomacy? where is the diplomacy in light of everything going on here? a one thing that struck me vessel's comments is the treasury secretary was very kind almost to the chinese.
he refused to criticize them. he was repeatedly thanking them for their cooperation. in that way, it almost seemed like the u.s. was extending somewhat of an olive branch in thanking them. we're still trying to figure out what exactly it is the chinese have done. we know from a couple of days ago they had told banks to with the security council resolutions. president trump's comments today suggest there was a new action by the chinese and we do not know what that was still. again, cut off financial trade ties with north korea, this track straight flow. steve mnuchin would not say which countries but china is the biggest trading partner with north korea, it is the second biggest. this all very nicely in our trade flow function.
while he declined to comments on trump's latest north korea session, you are saying this tightlipped nests -- this tightlipped approach makes you think the other shoe will drop. what would that be? >> two things i hear. in his meetings with national security advisers, donald is pushing for a nuclear option and is frustrated and angry there is not a quick answer to this. ike the serious strike. his advisers are telling him no, there is not. strike would result in a north korean counterattack and we could unleash a catastrophic war and unlike anything we have seen since world war ii. what else can we do? thing is the sanctions. great, but sanctions alone cannot solve the problem. sanctions have never caused a country to comply or collapse. negotiatedds is a solution and that is what the chinese keep pushing.
a freeze on the program and you will not get them to do nuclear i, but can you freeze and pause the program and see what options are open? exchange, north korea and south korea would give massive economic aid to the north and, this is the kicker, the u.s. and south korea would have to decrease their military exercises, relax somewhat what the north korean's cs threatening behavior. that is what is going on behind the scenes and is realized in the next few weeks, we will have to wait and see. ask you because as we were talking about north korea, we saw the president with the leader of turkey there. the banner we were showing said the relationship with turkey has never been stronger. what do you make of that quickly? >> it is one of the more surreal moments coming out of this presidency. the relationship with turkey is under a severe strain. it is essentially sliding into
-- an autocracy. >> it is essentially already there. we will not talk further about that. tragedyght be a part of -- strategy overall. book "nuclearthe nightmares." let's get you now to options insight with gallaudet -- abigail doolittle. abigail: indeed. joined from the cboe in chicago. great to have you with us. thank you for taking the time. it is amazing here. daysirst and the dow in 10 here it is this a speed bump from the fed or a realization on the part of investors that the fed is truly taking away the punch bowl finally? >> possibly.
they threatened it at least. i think it is really a bit of a pullback after the announcement yesterday. we saw the market with higher and i think they're settling in that range after yesterday. you look at the options pricing, and the vix, the market will not come include anytime soon. >> though the dow is on pace for the decline earlier today, yet another all-time high. pretty astounding, all the record highs recently. high and is very bullish it is that a contrarian indicator or do you think there are more ahead? >> i think what you have seen in the last month, the august lows, we have basically been climbing a wall of worry. in the last month, we have seen boosted genetically now screaming uncle particularly down here on the floor. it leads me to believe we are getting to the point where you
have more bullish sentiment in the market and becomes a little more vulnerable to a downside correction. >> we have those vix compressed at superlow levels and yet back in august, one day there was a record call buying day for the vix. was that a precursor of more to come? >> i think because the vix and the volatility space has become so liquid and there is a lot of ativity there, it is just place to seek protection in the downside markets and if the markets are going to come unglued, that is a place where a lot of our petition pence -- on that entity trading. i think that is part of it. second of all, you get a lot of bang for your buck down here. you see a 50% increase in the volatility space, it could happen any given day. we see weakness because of the vix right now. >> in about 20 seconds, your trade on macron is reporting next week. >> a rich reversal. i'm looking at november, selling , it allows fored
some participation on the upside. >> we have got to leave it there. thank you so much. back to you. >> thanks very much. we will follow the latest actions against north korea or the trump administration slapping new restrictions on individuals and companies and banks doing business with the country. steve mnuchin announcing just a .ew moments ago the details the central bank ordering institutions to stop dealing with the regime's pair we will discuss her from new york, this is bloomberg. ♪
makes puerto ricans eligible for financial systems p are hundreds of homes have been destroyed and officials say it may be months before everyone gets their lights turned back on. president trump plans to visit puerto rico to assess the damage and he spoke about the devastation while meeting in new york with ukraine's president. president trump: puerto rico is in very tough shape. grid isectrical destroyed. it was not in good shape to start off with, but the electrical grid is totally destroyed. and so many other things here and we are starting the ross is now. we will work with the people of puerto rico. city, a racexico against time to rescue a 12 euro girl trapped in the rubble of the school. could ber students trapped with her, though it is are stillether they alive. the girl has been there since