Skip to main content

tv   Bloomberg Markets Americas  Bloomberg  May 7, 2018 2:00pm-3:30pm EDT

2:00 pm
shery ahn: here are the tops -- scarlet: here are the top stories on the bloomberg and around the world. pushing oil past seven did -- $70 per barrel for the first time in years. bank of america merrill lynch. street, meet street, meet the 0 five euros investor who won over elon musk in a bizarre and tesla earnings call.
2:01 pm
will set thesending those sharey
2:02 pm
11%, a lift from another big weekend for "avengers infinity war" which had a $100 million opening weekend at the box it had a second week in brief the number. 93% is what it accounted for of the weekend revenues. good news potentially for the company. from small to very big, apple is blocking the race to $1 trillion in market cap. here is the year to date chart. again, just $1ce trillion in market chap -- market caps. it would mean about a $16 per share increase in the stock. halfing a couple of
2:03 pm
strong days. today performance. it is its best two days in 11 months. >> let's see what is going on now with mark crumpton. >> vladimir putin has been sworn in. putin says doing everything for russia is his life's work. he called for international cooperation for stability and peace. president was reelected to a six-year term in march with 77% of the vote. russia is moving into the eastern mediterranean. russia is using the syrian civil war to increase its presence in the country'sports. >> president putin has taken advantage of that in the current day and age in 2017 and 2018 because assad was desperate.
2:04 pm
his regime was about to collapse and for all the right reasons. didn'tocities, people like it. he is under incredible pressure. >> the chemical weapons facilities infant -- in syria attacked by nato allies on april under the eyess, of oversight of the russian forces. italian president sergio mattarella says he is suggesting that the country'deadlocked clinical forces backed what he called a neutral government to rule until the end of the year. he said today there is no hope for any political allies in isly can't wait until there book leadership. it would expose italy to undo with -- risk.
2:05 pm
global news 24 hours a day on air and on tick tock on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. julie: donald trump has whether to scrap or keep the nuclear a -- nuclear deal with iran. iran are likely to return. prices pushed past $70 per barrel. , head of commodities $17 by theives
2:06 pm
summer -- to what extents is the collapse in the oil price, d think? >> we have a target now for the summer. we think it is coming from venezuela. it has come off by around 700,000 barrels per day. in the last 12 months. this is going to exacerbate the problem. it is only partially priced in. >> just the -- to be clear,
2:07 pm
remember, the markets has been coping or trying to cope with a major supply less. i highly doubt we will see a expert.on of oil potentially coming next week. i am not sure it is something the administration wants to do
2:08 pm
ahead of the midterm election. 180 days or maybe nine months, i don't know. the physical markets, i don't .now >> what is the position signal if the president delays the thesion or perhaps negotiation of the iranian nuclear deal? it doesn't jump early next week. by 180 days delayed or maybe longer, it relates to the ability of iran to keep
2:09 pm
exporting. again, there are issues going on. the meeting it will have on june point second, you will get signs of the strategy and signals around potentially tapering but the oil company supplies -- on the other hand, we have seen constraints from the u.s. when it comes to taking burial test barriers, fastest growth producing region when it comes to shale, moving those out. we have russia cooperating more closely. we have venezuela production falling and we have iran. it is a broad range of issues pushing oil prices to the
2:10 pm
current levels. we remain constructive. growth is still strong. we are seeing a supply shock. we are not quite seeing the negative impact. >> russia is working more closely together. 65 per barrel is a suitable price. saudi arabia is targeting $80 to support the eventual ipo. how deep is the divide and does it need to be resolved? >> there is no question, but again, rand paul feasibility is a lot more limited. at the end of the day, the key thatr within the cartel holds the largest spare capacity, over 2 million barrels per day of capacity is being held on a nameplate racist. if you think that really, the key actor, of course, russia.
2:11 pm
ec russia hit by the sanctions. i think that is slightly to bring it closer. saudi incorporating more closely. next year, it goes down very quickly. so far, we haven't seen any of the russia deal members. i'm not sure they will be able to react to any.
2:12 pm
>> the shale players as well at this. look at this. >> we see the entire community moving to more capital discipline. you see the data on the report time,gs but at the same the cooler market, meaning the price is a lot higher. 2022, they've not blinked. juicers are not getting the benefit if they hedge farther out.
2:13 pm
then you are facing 7, 8 similar discount. the opec members -- it is not so good if you are sitting and you don't have access to that istation and also, the real issue for shale. i think they will be slow to that. >> we need your opinion on that. they haven't gotten to $1400 in the last five years or high of 1396 in august of 2013. to 1450 anding beyond? >> in my mind, it is pretty simple. the feds andwith
2:14 pm
monetary policy. hiking rates and we have seen the fed funds rate going up several times. timesl go up a few more and at the same time, we are seeing compression in the fed balance sheet which amounts to roughly 1.4 join dollars. pushing uporces are to overnight interest rates and also have been pushing out effectively the spread between overnight interest rates, it has been moving wider in the last few months. we think the monetary conditions forced the fedy to slow down there monetary policy response. if that is the case, that is when we think gold prices will really shine. we're seeing a similar situation . obviously the euro-dollar has rallied. the euro goes to 115 on the
2:15 pm
short run but longer-term, we are seeing fiscal deterioration in the u.s. government budget and even if we get to a 5% plus next year, there is a very good chance that in the context of less monetary policy tightening, we will see a run-up in gold prices. fed does, but we already have a positive fiscal backdrop for gold prices. eventually take gold prices higher. >> what functions are you making about the u.s. dollar and further strengthening of the u.s. dollar in light of the 1450 plus call? >> again, we think it will rally in the short run and that is what our strategy team is saying . 115 against the euro. from there points current level. eventually, this acquisition of the u.s. dollar is basically a headwind, emerging markets,
2:16 pm
global economy growth, because it is restraining capital outflows to those regions. eventually, the fed will probably have to change course and be a bit more relaxed in terms of the monetary policy tightening path it set out for itself. when gold starts to feel that will happen, we will rally gold prices. gold reacted bad to the taper tantrum. it is the first asset to react to the end of quantitative easing. thinke of hard but i do it will be the first asset to react to the next monetary policy cycle and i do not know how many more times we will see the fed heightening rates. it might be too and it might before. -- be four. >> all right. course, he was referring to the currency outlook from his collie, david
2:17 pm
wu, who we spoke with. to follow onnts that conversation can find it on bloomberg.com. answers fromtting elon musk. we will hear from a 25 euros investor who had 20 years of fame on the tesla earnings call. quite the call. this is bloomberg. ♪
2:18 pm
2:19 pm
julia: this is bloomberg markets. scarlet: after elon musk pulled week, henalyst next gave the retail investor galileo his 23 minutes of fame. test focused.nd earlier to bloomberg
2:20 pm
today about it. >> inspiring millennials to take an interest in finance by making fun and more unique and more excess will content on youtube. musk's'sd you get elon attention? >> a set up a campaign and had about a couple hundred of my representing in, over 20 million worth of shares to get a voice for retail investors on a conference call. i crowd sourced a bunch of questions to viewers and subscribers and pitched them to elon musk. disrupted bytheme what you achieved, 23 minutes is a lot of time. --was obviously quite since dismissive of many of the questions and some were valid talking about gross margins, does it need to raise more money. is a pivotalit moment in the analyst core pok? >> yes. i do believe it is.
2:21 pm
and i disagree, i think the questions right before me it are -- reiterated a lot of things that have been answered in the shareholder letter. i think it was a perfect storm of him getting a little strip -- frustrated. i do not think the transition went as smoothly as it could. i had questions prepared from all the shareholders who elicited feedback and information so i just have to keep ask questions and provide value. mark: so you have got a youtube channel. the channel is not making money. i gather you have sold some of your it coin investment to fund the channel. can i ask you, i mean, how much of bitcoin do you own, what price did you buy or soul -- sold? any other crypto's -- currencies? >> yes. liquidated an average of about 12,000. i've been using the profits to fund hyper change while we wrap up revenue for now. currently own one other
2:22 pm
crypto asset, the token behind the stable coin. >> fascinating. can we just get back to the tesla call for a moment question mark i'm wondering why particularly on the earnings call? if you're talking on behalf of shareholders, couldn't you have waited for a shareholder day or an annual meeting, where shareholder voices are heard? typically they are for analysts. >> i think of myself as sort of an analyst as well. the chance toget ask questions at the shareholder meeting but the quarterly conference calls are for updates also on the business in the 12 to 18 month timeframe. i will say i could have dived more into the financials and operating expenses. i think that is important about them going to profitability. by think there is a place for these more strategic questions on the conference call and the analysts were not addressing them. thing like the huge energy progress.
2:23 pm
organic a lot project because of that success. you feel used by elon musk in the sense that he was here toy five minutes that took away from time when apple could've been asking you questions? >> no. i think it was win-win pair there has been a ton of news about the tesla network, tesla energy, really involving a long-term story out of those questions. goal oil russell speak us earlier today. great performance. from new york, this is bloomberg. ♪
2:24 pm
2:25 pm
>> the stories in the news right now. crude offers a new challenge for u.s. shale. those who helped shakeup the oil
2:26 pm
market have a decision may, whether to decide to limit output or we the benefits of the high prices and more than three years. sanctionsns ever nude on iran currently driving prices higher. japan's pharmaceutical on the verge of its biggest acquisition ever. according to the familiar, it is near an agreement to buy its rival drugmaker. and that is your business flash update. >> coming up, rudy giuliani is waging a pr campaign for president trump. why he is not ruling out the president pleading the fifth. that discussion is just ahead and this is bloomberg. ♪
2:27 pm
2:28 pm
2:29 pm
2:30 pm
2:31 pm
>> that is one of your highlights from tick-tock on bloomberg. marketsinto the futures through the chart and on this monday, we're taking a look at bitcoin. worstn is lower today and day in about two weeks. this after warren buffett did talk about it being probably rat poison squared at berkshire hathaway's's annual shareholder meeting. bitcoin is down in a big way over the last two days. in april, bitcoin had really rallied in a big way, up more than 30% since the recent lows at the end of march. we can show the rally over the last several days. look at that up 37%, quietly. but will the rally last? let's hop in the bloomberg and
2:32 pm
onk at near-term technicals the front month contract. you can view this chart and we are seeing bitcoin, the high back in february, declining, declining, but putting in a reversal or the buyers are trying to take control of the near-term. congestion the, the next big move will matter whether or not the congestion breaks the upside or the downside. there are reasons the downside during the uptrend, we could see it go back to a relative near-term. i like to bring in mike, bloomberg intelligence strategist. suggestionthink the goes for bitcoin question mark >> a greater risk is it continues down to the meme from last year was about 3000. that is what it has done in the past. has gone down to longer term and you also mentioned consolidation. is the third month in a row, we're stuck in the same range. i do not know what it will take to go higher but we know it is elegant -- elevated to those
2:33 pm
levels. >> i love to see this in the bloomberg. it is g tv, oliveira viewers can view it you -- using the g tv function. you introduced me to a new term. can you talk about how this relates to bitcoin? >> it is a mantra of the space in bitcoin and cryptocurrencies. it means hold. someone who typed it under the influence of who knows what in december of 2013, did that write about here. the key point is after that was tweeted, the market dropped another 70% and then stated this back to the moving average and then it went higher. from it was the average 2013. at 2017, 2018. the average was almost 4000. here we have it stuck in a narrow range ready to have it or a cap.
2:34 pm
the risk remains in a goes back down to the longer-term average and the 50 month average. it is the biggest risk in bitcoin. nice if it could go higher but it means we still could go lower if history is an example. >> what about relative to the futures market? especially with explorations. let's look at the bitcoin futures and you can talk to us about whether or not it is something you think is wise and prudent. >> absolutely. the key thing about futures is they brought transparency to the price in the market. also allowing users to shorten the market. price and open interest is the key. multiply it by five because it is five times the contract. the key point is it expires at the end of the month. these have a tendency to be down markets. last part of the
2:35 pm
the month. there is really no correlation. futures buying is really picking up. still very small. >> futures might be better for real active trade hedging. >> futures are great for hedging. >> great stuff. terrific and is on bitcoin for futures. back to you. scarlet: let's go to first word update. cuba antonio is headed to for the economic commission for latin america and the caribbean's. will address the meeting's opening session ends week with the new cuban president. calls have released 911 plane crashedhis last week. the aircraft plunging nose first into the highway. one calls the emergency operator "it fell out of the sky and is on fire right now. wednesday on aed
2:36 pm
highway near savanna killing nine in the national guard. the military is investigating. a powerful french union is promising to push ahead with strikes that disrupted nationwide train services even as a possible compromise, signs emerge. the -- they reportedly discussed amendments to the national rail carrier. resume in the evening through thursday morning. planned through the end of june. , the first office woman to hold the post in the 300 year history. her inaugural speech stress the need for new orleans residents to work together to solve challenges. three largest cities, new orleans, baton rouge, they all have black female democrats as their leaders.
2:37 pm
global news 24 hours a day on air and on tick tock on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. scarlet? scarlet: thank you president trump's newest lawyer is leaning against having him sit for an interview with robert mueller. really -- rudy giuliani told abc news that such an interview would be a trap. said trump would not have to apply if one were issued. trump plans to pull the u.s. out of the iran nuclear agreement. we are joined by the white house editor for bloomberg news. before we even get into the rudy giuliani'specific comments, didn't he say he will get his facts straight and he should , which isre he speaks casting down on whatever rudy giuliani says. >> the president did take his newest lead attorney, i guess
2:38 pm
that is what he is now, to task. the bizarre hannity interview on wednesday were giuliani for the , the time this post present repaid -- it is difficult to know what to make of those statements now. i know a lot of trump's's lawyers and probably all of them have advised him not to speak with the special counsel. i do not think it is extraordinary that they would think it is a trap. there is a tendency to make claims that are not true. in public and otherwise. if he does that in an interview while under oath with the special counsel, he could be charged with a crime. >> does the president have to comply with a subpoena from robert mueller? what are the implications if you decides not to appear question -- to appear?
2:39 pm
knowledge ato subpoena, it would probably wind up, it would probably wind up in the supreme court. >> one of the other things was the iranian deal. he thought the deal is dead. bear in mind what we discussed already
2:40 pm
2:41 pm
2:42 pm
what are the polls saying? i would sayto bet, blankenship has won the primary. he is now tied to politics for sure. he says really extraordinary things, let's put it that way. he has got an interesting history. he probably does not live in west virginia. in the era of politics when people seem to be looking for the most flamboyant or the camp -- the candidate who will push it the farthest, i would not be surprised if he wins. >> details, details. thank you for bearing with us or interesting situations are going on as always. >> blankenship calls himself trumpier than trump. >> saunders is answering questions about cia director nominee gina. the legal counsel and relate --
2:43 pm
rudy giuliani in a number issued. you could watch the entire briefing by using the terminal function live go. from new york, this is bloomberg. ♪
2:44 pm
2:45 pm
julia: time now for the stock of the hour. ,he biggest post earnings game since almost three years ago or joining us now to discuss that is editor and columnist dave wilson. great to have you with us. talk us through the results. >> this is the case where less bad was good enough.
2:46 pm
you consider the revenue was down 7% from one year ago. earnings fell 6% and analysts were expecting worse. passes numbersy looked better than the estimates, the stock took off. it is a story of trying to survive in a business. if you think about the print side, the newspapers, shrinking. so talk about what is going on is far as revenues from advertising, sprint versus digital. how are they managing to offset one from the other? >> fair really focused on the digital side, making deals in the online marketing. they bought, increasingly important. see why this is a company that struggled on its own. they have had to adapt. we have seen falling
2:47 pm
subscriptions, as you might expect the decline in the latest quarter was not as bad as people are looking for. andl market circulation revenue down 3% and people were used to seeing bigger numbers than that. at least it stabilized somewhat. >> it makes perfect sense. bloomberg stocks editor and columnist. some news now, president donald trump to announce his decision tomorrow at 2:00 p.m. on iran. we were talking earlier in the show we were expecting this in five days time. what we are seeing in the old markets and the pressure above $17 per barrel, it seems as if, according to reports, the president is going to make the announcement earlier. the question comes down to whether or not the united states remains in the nuclear disarmament deal in iran or whether or not we see a further decision to amend it or if the united states steps away. the u.s. or the president has spoken on both ends about how he would be happy to renegotiate or
2:48 pm
he wants to pull out the u.s. completely. >> rudy giuliani suggested the deal be ripped up over the weekend. theaps that facilitated decision. from new york, this is bloomberg. ♪ ♪
2:49 pm
2:50 pm
>> i want to reiterate breaking his we got moments ago. the news crossing the bloomberg that president trump is set to announce the decision on the iranian nuclear deal tomorrow at 2:00 p.m. this deadline was made on 12 and we talked about the prospect of this happening at some point in the next five days perhaps on a deadline. what we saw with new legal counsel rudy giuliani suggesting the deal with europe that, obviously we have seen in all today with wti above $17 per barrel. the process of retracing, with sanctions being reimposed on
2:51 pm
iran and that pushing the oil price higher. >> there is no indication of which way he will lean. he could stay in the deal, and he has made that clear that you think it is a bad deal. he could also delay and say he is delaying by extending 800 days. be the it could beginning of a bumpy ride. >> absolutely. the point you make there is very important. he does not necessarily have to make the decision one way or the other. want furtherwe information on this and we know have been speaking to the french and the germans and the u.k. has also intervened. let's get some context. joining us now is the bloomberg international editor in d.c. have been speaking to the french and the germans and the u.k. has also intervened. we are talking about the oil market reaction following weekend headlines. what do you think precipitated decision to at least make
2:52 pm
some form of announcement tomorrow on the deal? >> the president had until saturday to make it. the word we had from foreign leaders who have into washington in recent weeks including the french president and the german chancellor is at the administration seemed to have largely made up. they were pessimistic that the u.s. would stay in the deal. the particular timing, why tomorrow at 2:00, i do not think we have a good reading on that here the president was due to make the decision by saturday. he could announce that the u.s. is withdrawing from the deal, and then what happens is these sanctions he would not be waving specifically target foreign business with iran's oil sector. but there is no assessment of whether companies are violating those sanctions until november 8. there is basically a 180 day time after the u.s. reimpose a sanctions, if that is what it does, before there is a report or assessment done of who is
2:53 pm
violating the sanctions. in theory, we think it buys a u.s. andme for european governments to come to an understanding or side agreement but everything we have heard from people meeting in the administration is that they had not been able to persuade the lighthouse that is worth -- it is worth staying in the deal. >> what about the iranian side #11 clear they're they are not renegotiating and that this is set in stone. they do not want to give anyone leverage here that they're willing to come to the table and perhaps renegotiate in some way. family, nothing changes. they could come forward and say they will rip up the deal and there is still time to renegotiate without anything changing. >> we think that is the case. it will set a precedent. we will hear a response from countries like russia and china.
2:54 pm
the --y will jump sure jumpstart nuclear program even if he thinks the u.s. has withdrawn. again, there will be limbo where no one is really sure who is under the threat of sanctions and what iran's response might the and whether the trump administration really could onch a deal with allies something that is maybe a broader agreement. >> yes. you make a great point. >> but with a 180 point deadline. our thanks in washington for keeping us up-to-date. the business of the quality -- she joins us now with a quick preview. it is an all day event, it is great. >> it is great and we are excited. >> we will kick things off with stereotyping generations, not just focused on women per se or
2:55 pm
certain ethnic groups or anything. it is pretty broad. >> we felt this was an important moment with a discussion of the treatment of women in the workplace. we wanted to expand the discussion to include all issues of equality in the work-based and wealth creation and society as a whole. >> why diversity through a conference? >> we feel we are the right people to convene a conference with business leaders talking about these issues, the importance of looking through of sexualegardless orientation, gender, socioeconomic status, in every .rea of equality we felt this was an opportunity to discuss solutions and we are position to discuss real solutions to the problems.
2:56 pm
>> i talk about some initiatives that are working. young men of color in the tech agency. a major place of change. >> we will not skip the opportunity to see whether there will be change. we have chelsea handler, ashley judd, harvey weinstein, executives from the gender equality index, the index founded by bloomberg. >> you are looking at some finance. cannot wait. >> our thanks and tune into bloomberg for an all-star lineup tomorrow at the business equality summit. well done. ♪
2:57 pm
2:58 pm
2:59 pm
julia: i'm julia chesley. scarlet: i'm scarlet fu. welcome to bloomberg markets.
3:00 pm
julia: live them bloomberg world headquarters over the next hour going top stories, nowhere fast. equities rally. deal or no deal? president trump will announce his decision tomorrow. the bloomberg exclusive, we glenviewr more from capital management. stable study rally is not so study. particular the s&p 500 and dow jones industrial average. going to do with what is on.
3:01 pm
president trump tweeted an announcement on the iran deal is coming at 2:00 tomorrow. to makeore the deadline his decision. there is still uncertainty about what decision he is going to come to. we do not know at this point. it looks like an abandonment of the deal has been started to be priced into oil. that is something a lot of analysts and traders are trying. throughout the station energy has been in the top spot. now it has fallen. that seems to account for the faltering we see in the rally. , asee the strength remaining
3:02 pm
strong day for technology. facebook is higher. amazon is at a record in today's session. outperformance has started to widen. the company has talked about increasing shareholder value. aluminum is higher is well. barclays saying proprietary customer survey for its system showed they had to spiritual -- buyers.ial demand with
3:03 pm
though shares taking a hit at 11% as result. and x-ray is the ticker. that company coming up with first-quarter numbers. they are continued uneven results. new leadership lower guidance as well sooner than expected according to jeffries. shares down 7%. scarlet: thank you for that check on the moving parts in equities. mark: the white house is finalizing a list of spending cats to congress but it is using -- leaving the catchall spending bill alone. pressure from party conservatives resulted in a delay from the original release date. the project could face a
3:04 pm
challenging pass in congress in the senate. boris johnson is in washington. he met with mike pompeo. he is expected to spend today's meeting with trump administration officials as president trump decides whether the u.s. will remain in the iran nuclear agreement as we mentioned. an announcement is expected tomorrow. fromon's trip follows france and germany. the interior minister of pakistan is in stable condition after undergoing surgeries for a gunshot wound. he was returning to his car and was shot following a meeting with constituents. the suspected gunman was arrested. but theve is unclear suspect has been linked to a group of religious hard-liners who rallied earlier this year.
3:05 pm
in hawaii the kilauea volcano has destroyed two dozen homes. 1700 people have been forced to evacuate. it is one of the world's most active volcanoes. it has been erupting continuously since 1983. global news 24 hours a day on to c onck -- on tic-to twitter. i'm mark crumpton. this is bloomberg. scarlet: thank you. it is an action-packed deals report. an all-cash offer for athena health. closing in on blackstone my raising the wage on warehouses. joining us to apparatus up, let's start with the last one first, blackstone which owns the largest fund on record, striking out again. >> i love this story because if you know about the history of
3:06 pm
blackstone over the last 10 ,ears, going back even further they have been known for making big bets. this move into industrial speaks to a major trend in the market. julia: and opportunistic. they spot a theme. fundsal estate investment are all under pressure. those focusing on office rental and ones that look at warehouses. they played to a bigger theme. >> in the valuation, that is part of the playbook. seeing that ultimately the , theyage opportunity
3:07 pm
public market is inefficient when it comes to real estate. iny are seeing how to get and what they're looking at specifically, e-commerce. ist of what is driving this the distribution, the logistics that you need to service the amazon.com world we are living in. you need to make sure he gets to the right places. they are buying up real estate in a lot of areas. watch this space. you could see more of this and we should note, that is a week the deal. a lot going on in this space. julia: the perfect intro to what is going on with athena health. putting in this cash offer.
3:08 pm
are they trying to flush out other bidders? >> it seems that is a possibility. paul singer well-known. he has been aggressive. this has been a long story in the making. more than a year, they have been trying to make some changes. there are a lot of great names around this. companyrman of this came on. is not whose legacy winning a lot of great headlines of late. it will be interesting to see whether this does flush out more buyers. it is seen as being pretty attractive. there is a lot of movement in the broad health care space.
3:09 pm
they could end up actually buying and owning the whole company but this could be a play to get paid by someone else. bloomberg is recording to kate is getting close to an agreement to buy shyer. we spoke with larry robbins. he owns $1 billion. ironies is many companies are being bought and financed by the inefficient target. shyer bought back quite a fancy price for that. , rather thantimes looking at returns on capital. scarlet: give us an update in but we should be looking for. coming to fruition.
3:10 pm
$64 billion would be the biggest ever take over. what is behind this, this is a classic health care pharma move. replenish the pipeline. obviously one of the things investors are looking at, what does this do to the credit rating? there would be a spike in leverage. inefficiencies, that has implications. we will see where this plays out. julia: you kind of show your hand or you can be a target. great to have you with us. the white you to house rose garden. president trump is joining his wife as she unveils her first .nitiative as first lady you can continue to watch her go should you
3:11 pm
choose to. from new york, this is bloomberg. >> christian schools and community -- ♪
3:12 pm
3:13 pm
scarlet: this is bloomberg markets. julia: let's get to that bloomberg exclusive. larry robbins sat down with bloomberg tv earlier. theiscussed the deal and future of drug pricing. >> we are proud to have been an engaged owner. we had to people joined the board. of an agenda that new leadership has embraced.
3:14 pm
facebook has more than doubled. $1.7 billion of market value. the best days are ahead of it. the agenda the team's leading is a simple and logical agenda with a focus on time management incentives. it involves cost-cutting. $250 million of cost-cutting today. another round could and should happen. update in the next few months. julie: how much can they get? >> the market will determine that. in the short time they have abouted profitability for 15%. the best way to achieve full and
3:15 pm
fair value is to have a critical -- credible path. believe thesay we tenant as a third partner is a valuable asset but does not need to be owned by tenant. all of our customers have been attracted by the belief that it hospitals.unning we think we can have that as well. the stock have owned for 5.5 years. action inrun a proxy february. we put out on a website our view is. we did not want it to be a campaign. forimply one of the ability shareholders to have some say. the company board heard the
3:16 pm
request and put in a special meeting. we have not talked publicly about that in some time. disappointed are it took the legacy board so long to focus their time and attention on that. we are like other shareholders thrilled there does seem to be the appropriate pace of time and attention. julia: staying in the general air of health care, what happens to shyer? >> that looks like it is heading to a deal. many companies are being bought and financed by the target. shyer bought back salt. they paid a premium. we see boards and management teams tend to want to accomplish that which is on the strategic plan rather than looking at returns on capital.
3:17 pm
they promise the market they would bring leverage down. they had every opportunity to purchase their own shares. takata has come along and recognized only there are synergies, but also one can access cheap capital. we do think that is about 35% of shareholders. stocks come under pressure. think that deal is trading at reported deal prices. julia: you have spoken about mckesson. they have had a few rough sessions. have you been buying more? is it philosophy
3:18 pm
changing. our attitude is, we are positive on them and our attitude has been to add over recent weeks in those positions. some of the noises, we expect president trump and hhs to come out with certain proposals later in the month that will address the rising cost of pharmaceutical processes. if one looks at the data there is absolutely examples for individual drugs have seen serious price increases. on the whole, the average price per medicine inflating 1% per year.
3:19 pm
in fact, that is the problem that market forces have solved. they provide a valuable function. just to be clear, you don't have the position in cardinal. >> our biggest positions are mckesson and america source. scarlet: time now for the bloomberg business flash. a look at the business stories in the news now. bitcoin kicked off with the first decline in four business days following criticism from warren buffett. currency rat poison. thend starbucks will pay world's biggest chain of coffee
3:20 pm
shops $2 billion in cash to sell products in retail and food service channels. that is your business update. g tv , that is where you will find the charts you see on bloomberg tv. you can click on them to catch up on the future reference. it is a great place to go. that is you can see g tv . julia: from new york, this is bloomberg. ♪
3:21 pm
3:22 pm
julie: time for options inside. joining me is kevin kelly of benchmark investments. evan, there is a little bit of an uptick here in stocks of the past couple of sessions. as we have learned recently,
3:23 pm
can't get a call ratio. major averages. >> i want to see investor sentiment. options have been hedging this market. the index options come you are starting to see the one to one of the half times the amount of those being traded versus the calls. you have to break it down sector by sector. then you can even see people are really bearish on the health care space. three and a half times the amount of things being traded when you look at technology which has had some issues. you are seeing the opposite. very bullishing
3:24 pm
and that can be off the back of apple. >> apple has another record today. your trade has to do with equal next. noticed me you have been talking about real estate stocks. hass no accident your firm developed and indices that tracks subsectors. know, it combines technology and rates. >> right. this goes off the xl case sentiment. that is what it is. it is the world's largest internet exchange. they have data centers all over the world and they have a big partnership with microsoft. it is this company that is enabling the back of their cloud computing. the trade is down today.
3:25 pm
how do you play that? go out to september. 4% of theust under underlying share price. enticingeally especially if you believe in the cloud story and that is where it is going to grow. this is a nice derivative trade. julie: they bought a number of verizon data centers but in the most recent earnings report that is a weak spot. is that going to be a drag on the company? aboutryone was worried the growth in the verizon deal. they do not think it is going to pay off further for bookings and not lead to organic bookings until the second half. verizon sold off a lot of it cell phone towers.
3:26 pm
everyone getting into the core competencies. julie: specialization. back to you. deal or nol ahead, deal. president trouble announces decision on the iran agreement at 2:00 eastern tomorrow. here is a picture. after the president tweeted oil falling below $17 a barrel. we are awaiting the deadline on may 12 for the united states decision on whether or not to remain in the deal. we will discuss further details on what you mess. -- what'd you miss? this is bloomberg. ♪
3:27 pm
3:28 pm
3:29 pm
mark: president trump has tweeted his decision on the iran nuclear deal will be announced tomorrow at 2:00 washington time. the president has criticized the
3:30 pm
report and hinted he would with drawl from it. germany, and france have lobbied mr. trump to remain in the deal but the french president said after his meeting last month he expects the u.s. to exit the deal. totesters gathered outside rally against the trump administration's move to end fororary protected status tens of thousands of hondurans who lived in the u.s. for two decades. 57,000 hondurans are covered under the program. they have until january 5 to sort out their affairs before returning home or to normalize their status and other ways such as marriage or sponsorship. the european union will investigate crimes committed against ethnic serbs during kosovo's war for independence. they agree to set

12 Views

info Stream Only

Uploaded by TV Archive on