tv Bloomberg Markets Americas Bloomberg May 14, 2018 1:00pm-2:00pm EDT
the deadliest day of violence since a 2014 war. palestinians have been killed and 1200 wounded by fire. hundreds of protesters carried out "concerted coordinate attacks on the border fence in an attempt to infiltrate." borderviolence along the escalated, the american embassy was open today in jerusalem. it is a move that has been condemned by the palestinian authority. at today's opening ceremony, the israeli prime minister benjamin that yahoo! praised the move. -- benjamin netanyahu praised the move. >> it's a great day for israel. it's a great day for america. it's a great day for fantastic partnership, but i believe it's also a great day for peace. mark: palestinian authority it has criticized
the action, saying he will "not accept any peace deal imposed by the trump and ministration." officials are warning that russia is actively seeking to undermine their democracies by more traditional means of espionage. berlin, andrew parker, director general of the british a carry service, also noted the continued that proposed -- posed by islamic extremism. >> the significant impact to the shock and disgust of terrorism has been felt right across europe. just two days ago, parasol another brutal attack. -- paris saw another brutal attack. been 2015, there have brutal attacks across european countries. mark: they foiled 12 extremist plots since parliament was attacked in march of 2016. the volcano near
summit sent gases and love exploding into the air, pumping officials to call for more evacuations. the u.s. geological survey's hawaii volcano observatory says that the eruption's are more likely to continue. the volcano has destroyed nearly 40 structures. global news 20 for hours a day and on tick-tock on twitter powered by 27 journalists and analysts in over 120 countries, i mark barton. -- i am mark crumpton. this is blabe bloomberg. vonnie: it is 1:00 in hong kong. i am vonnie quinn. shery: i'm shery ahn. welcome to "bloomberg markets." ♪ vonnie: from bloomberg world headquarters in new york, here of the top stories on the bloomberg and from around the world we are following.
cbs and some their media is comeg aim at redstone escalating a long-standing fight over viacom. the stocks edge higher as yield edges back toward 3%. trade tensions between the u.s. and china showing signs of easing. wall street is on the move. we will tell you where the biggest banks are finding greener pastures. all that to come in the next 30 minutes, first julie hyman is with us. we are halfway into the trading day. julie: a lot of individual corporate stories overall and we are seeing a little bit of a good back coming off the highs of the session for the major averages. we are still seeing strengthen technology however as well as health care. we are also watching the bond market. an interesting measure here that has flipped for the first time since 2008. it is the s&p 500 dividend yield was is the three-month treasury
bill young. friday was the first-day since february 2008 when the s&p 500 had a lower yields. investors are looking for income and they may be looking for increasingly the treasury market versus the s&p 500. that is the first time going back to 2008. vonnie was just mentioning what and this on with cbs new lawsuit with cbs suing to block a possible move by sherry redstone to ask some of the network directors before they can consider a dividend that would lessen the redstone's control of the company. this continuing back and forth appears to make it look like a viacom deal is less likely. cbs shares are up and viacom shares are down by nearly 7%. elsewhere on the host of individual corporate stories we're watching, we have got one deal that may be happening and one that is not. sears says it is considering asset sales now, including some
of its key brands. kenmore among them. the shares up by nearly 9%. the man who runs the company heads up his hedge fund, which has set in the past that it might be willing to buy some of those assets. xerox on the flipside calling off its acquisition by fujifilm. this is a win for investors carl icahn and darwin decent, who control together about 13% of the company. carl icahn's appointee will take over as ceo xerox. we continue to watch the defense contractors. they have been on a losing streak here. again it's not very clear why this has been happening. analysts over at bernstein theorized that perhaps it is the values in the sector were too high. they have been looking around and say that we have seen the reality of recent defense stocks decline by record high valuations not adequately supported by growth. they are falling once again today. shery: julie hyman, thank you.
cbs suing sumner redstone national amusements in an effort to prevent it from interfering with a special board meeting to consider a dividend that would dilute the voting shares of redstone's company from 79% to 17. 17%. let's bring in the analyst from be tig. this theney called nuclear option by the cbs camp. what do you think? >> i think it's unfortunate because the real story that is getting lost is that scale in the media industry is being redefined. look at what bob iger is basically saying. disney is no longer big enough. they need to by fox. comcast nbc is gearing up to try to make a bid to steal fox away from disney. those companies are massive, both of them disney and comcast. they are tremendously larger than viacom and cbs put back
together. the reality is the conversation should really be about viacom and cbs need to get together and figure out how they get much larger from there. this back-and-forth is slowing down a multi step strategy that they both need to succeed long-term. both of these companies need each other and need to get much bigger. vonnie: perhaps less movements once it on his terms. this is really the only thing he can new because sherry at any point could have fired him. richard: the reality is every investor in viacom and cbs has always known that national amusements was the controlling shareholder. we see that and companies like snapchat it we hav. comcast is 30% controlled by the roberts family. voting power is not unusual within the media universe. we saw what happens when you oppose an owner last year when
philippe kaman tried to stop national amusements from change in control of viacom. i don't understand at the end of the day. it seems very hard to win this battle against an owner. at the end of the day, obviously it will be for a court process to decide now. the thing that is missing honestly is that no matter who runs these companies, they need to get much bigger because they are just not big enough to compete in the new landscape of media. rattledhe move has shares of viacom, now trading around $28 a share. you have a buy rating and a $47 target. give us your insights. richard: look, there's no doubt that our call on viacom has been underwhelming. crept in about this transaction, the stock has been under pressure. we continue to believe that these two companies together have significant synergy and value creation. the reality is even les moonves seems the value in this
transaction. he has even offered not an acceptable price to the viacom board, but even he made an offer to try to buy viacom earlier this year. there is clearly a desire or recognition that scale matters in media and that cbs, which has already lost football rights on thursday night to fox, they need more scale. nfl rights are coming up and there will be a tremendous bidding war for a lot of bigger tech platforms for sports rights. cbs is not big enough. whether it is less or somebody else in charge of the company, there needs to be a multi step process that takes place for both of these stocks. vonnie: that's the longer term view, but with the court case, how unprecedented would it be to have voting shares diluted and to have shareholders that have been long time shareholders in cbs gain more power? richard: look, i'm not a lawyer. i think this is going to come
down a legal battle. it's unclear even before that plays out before there is a rush running order on what could or could not happen. in the viacom situation, board members were added. they were never replaced. could that happen here? i think time will tell. there is clearly a key fracture between the owner and the board of cbs. we will see how that plays out. does it play out any differently than it did in the viacom situation? obviously we all know how that ended. it paid to be an owner in that case. vonnie: any ideas that sherry had any clue that this could be coming down the pike? richard: i don't know. national amusements has not spoken to me. i honestly don't know. i'm literally looking at this from the outside. i think is unfortunate because this just slows down what both companies need to do. this just further slows it down. while companies like disney and
comcast are battling it out to get bigger, these two small-company's can't even figure out how to get themselves together. vonnie: i'm sure we will be talking to you real soon. thank you for jumping on the phone. that is richard greenfield, media technology analyst for btig. still ahead, wall street is on the move. where the biggest banks are finding greener pastures. this is bloomberg. ♪
business flash, a look at some of the biggest business stories in the news right now. cohen point72 has poached a five person team from bali osmium estimate mannesmann -- asset management. to analyst previously worked for paul tudor jones is firm. according to people familiar, point72 outperformed in the year . facebook has suspended 200 apps that examining thousands had access to user data before a policy change in 2014. they will weigh investigation as to whether they miss use the data. they are part of the probe an audit promised by chief executive mark zuckerberg following the cameras analytic a scandal. the robin hood foundation will have its 30th anniversary new rip city tonigh in your cit. they will have music from
jennifer lopez and comedy from michel wolf, whose comedy drew criticism. helpedin hood program anti-poverty programs last year. that is your business flash update. vonnie: wall street is on the move with companies leaving their cushy midtown locales and relocating to new york's hudson yard. here to talk about how it's reshaping new york is rob. first give us a few facts. rob: it's a historical piece with the wall street stock mostly leaving wall street a long time ago. now it's for you much done and deutsche bank will be one of the last firms to actually leave the southern tip of manhattan where it all started. the big issue now for the big move now are mostly midtown to hudson yards, the new center on the west side. that will change midtown to a certain extent.
midtown has in some ways been wall street. jpmorgan is staying around grand central for the moment. morgan stanley is staying around times square. those are two big firms that will be in midtown, but there's going to be a lot of movement. vonnie: look at that. the moves out and the bar chart are phenomenal. just staying in midtown, that was not all about being physically there. it was also about wall street bankers just hang out together, information being passed at the bars. what happens to all that? rob: it's a bit of a historical piece. what happened in the 70's, 80's, 90's is that banks started looking at midtown is a good place to meet their clients and do that kind of thing. in a lot of cases, it sort of split the people who did the back office work and a lot of the traders stayed downtown .
the banks shifted the client facing businesses to midtown. they decided they were hurting themselves by not having that communication and having everybody in one place is a helpful thing. vonnie: it's pretty ho phenomenal because it has acquired millions of net feet of spaces. what is happening? are there more employees, businesses? rob: there is growth certainly .ould the wal the wall street firms have had a pretty good year and there's a lot of other industries as well. there's also a bit of a split between the different industries. downtown so far has been a lot of media. that may change. 'se world trade center 4 opening and there will be more space opening up over the next couple of years downtown. hudson yards has done a good job of sort of making the argument to lots of big companies and a lot of them are moving. shery: do we know at this point what is happening to those
buildings? they are going to be empty ghost buildings. who's going to take up? rob: i don't think manhattan is about to become a ghost town. [laughter] shery: nowhere close to that. rob: have you seen the traffic recently? it's a good question. cannature of the businesses shift. buildings sometimes can shift from commercial to residential. as we didpart of it not deal with it in the pentagon story, but the other part is the changing face of retail as well. that's also a lot of vacancy. vonnie: our firms paying less for these new leases than they would have if they had renewed in midtown? rob: i think the space is not significantly less although if you take a big chunk of space, you can negotiate a good lease. vonnie: what about the rest of the landscape around hudson yards? are we going to see huge influx of wonderful restaurants and nightlife and all that?
will that stay in midtown? shery: should we pay a visit in the future? rob: there's a subway line there now. obviously. there's going to be lots of things and it's incredibly convenient if you are a commuter to penn station already. that's a little difficult to get from there to midtown or downtown. i think obviously it's just the very beginning of growth in that area. vonnie: not everybody went to jersey then. rob: no. street is a concept more than a place. really it is still new york. points, firms have moved to connecticut or new jersey, but that really didn't last. it's all about new york. shery: great story on this rising trend. rob urban, thank you for that. coming up, our next guest has the biggest an mistake investors are making today -- too much credit and not enough duration.
vonnie: this is "bloomberg markets." i vonnie quinn. shery: i am shery ahn. investors are welcoming risk, spurring selling in the bond market. 3%s creeping back toward while spreads remain at the narrowest and more than the decade. the potential for the yield curve to invert coupled with study inflation is likely to play out in the fed's rate hike hike this year. tolier bloomberg spoke cleveland fed president for her take on the economy. >> when the fed is thinking mandate goal and inflation of 2%, of course we're thinking about it on a sustained basis. we are looking through these transitory movement and looking at where inflation is going. my own forecast is that we will on anflation be 2%
sustained basis over the next want to two years. shery: joining us now is docked peoples. great to have you with us. we saw president masters comments adding pressure to treasuries. we are seeing consolidation patterns in bonds. >> yeah, so, i think what has helped cause that can call station is the fact that yields have risen -- consolidation is the fact that yields have risen. 2.85 on the 5-year note. if we five years ago could've given that on the 5-year note, they would've spent a lot of their asset allocation in that space. i think it is now starting to become again something investors are looking at as a legitimate area of investing. vonnie: can i just point out the seven 10 year spread? it's really phenomenal. i was reading it this morning and talking about how this is part of the curve that my invert. we're talking about three basis points here. doug: i think it shows that the
investment universe is not overly concerned with the inflation story. i think it coincides with the fact that the dollar has been a little bit stronger. you have the markets giving us some different signals about the bond market versus the currency market and the commodities market and equity market. it comes to the bond yields and the u.s., is that coming from within the united states or outside. ? doug: inside the united states. outside the united states, the european central bank has not stopped its tapering process yet. the foreign yields are actually holding u.s. yields down somewhat, which is helping exasperate the flattening of the yield curve. vonnie: what is a time frame? what should be positioning for? doug: as in bond investor, you always like to clip coupons while you're waiting and now you can actually clip a coupon while you're waiting in the treasury market. i think what investors have really done over the course of
the last several years because of the qe policy is that they have moved their fixed income portfolio out of duration because they were afraid of rising rates and they have moved into credit. that has been a great trade. now we think it's time to rebalance that trade back again and get some of your credit portfolio back into the duration front and have a more balanced exposure to the types of things that drive fixed income assets, both duration and credit. shery: i've seen in some of your notes that you have sent that you have cut down on emerging market long fx positions. i wonder if that is across the sphere. if you look at the bloomberg terminal and you see this chart on the bloomberg, you can see that asian currencies have outperformed. aug: what happens when we get period of dollar illiquidity, there's a draining of dollar liquidity and the yield curve is flattening and the dollar is rising. what happens is that currencies of countries that have current
account deficits tend to underperform those with current account surpluses. it's not a surprise to see many of the land currencies underperform in that environment. that hurt the most have issues with their current account while many of the asian countries have current account surpluses. vonnie: have to leave it there unfortunately. doug peeples is alliancebernstein cio offense to come -- of fixed income. and it's was of interview with the st. louis fed president at 1:30 p.m. eastern. this is bloomberg. ♪ . .
the israeli border. he calls the actions and atrocity. massacre is at the same place where the united states of america illegally and unilaterally in a provocative way is opening its embassy. >> 52 palestinians are confirmed dead and another 1200 injured. the -- moving the embassy angered palestinians. fake videos posted by state-sponsored anger provoking.nline is >> for too long, we have been a little naïve about the scale and
nature of this challenge, but the naïveté is disappearing fast. there's a growing public recognition of the dangers posed by the dark side of our digital world. -- mark: the disinformation can come from trusted channels makes it especially challenging for security officials fighting is spread across the internet. sanctions relief from the u.s. or north korea giving up its nuclear weapons. that they must have proved before sanctions can be lifted. more- kim called for a gradual step-by-step process. a vaccine could soon bring the ebola outbreak in congo under control. the world health organization says today there were nearly 40 cases of suspected ebola
infections, is that i've recorded outbreak in the central african nation. 90% of cases from its phase -- it's fatal. global news, 24 hours a day, on-air, online at tic-toc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. ♪ vonnie: --shery: i'm shery ahn. amanda: amanda lang. by bloomberg and bloomberg cnn audiences. shery: the u.s. and china signal a desire to avoid a costly trade war.
consolidation in canada's marijuana industry come into the largest players agreeing to the biggest merger seen so far in the sector. elon musk announces a thorough reorganization tesla saying the carmaker is changing its structure to improve communication. let's get started with a quick check of the major averages. we are seeing u.s. stocks higher today, but the s&p 500 is paring back some of the earlier games, all of the dow continues to rise it seems the longest winning streak since september of last year, health care and energy are leading the gains on the s&p 500. we are also seeing yields gaining grounds today and today also, the msci just publishing the final selection of so-called a-shares. the message any stocks that will be included to its index. can see that growing investor interest ahead of the inclusion has led to northbound flows of shares surging 45% year
on year, that would be your second panel. saying $40 million will flow into shares annually after the inclusion. into that aill dig little bit i'm going to dive back into the terminal here. we've been watching the yield on the 10 year treasury as a potential to point for when people might trade other stocks in this is the s&p 500 dividend yield dipping for the first time below the three-month to build yield. and what point investors see a better return in the same breath that class, so far analysts are saying it's too soon by this measurement and testing turning point. you can see that you tv . president trump toning down tough trade talk on china for now. in a sunday morning speech from the president announced the commerce run was working with thrownnt xi jinping economic lifeline to chinese telecom equipment makers e.g.,
this comes as president she -- xi continues trade talks are secretary mnuchin. michael mckee is here with the latest. could we expect some progress in this week's talks, given some trade tensions easing now? don't know trade tensions will ease because we don't know what congress is going to do about the ge. was found guilty of selling primitive items of u.s. trade sanctions on china and north korea, on iran and north korea. accused also have been of industrial espionage. the u.s. congress from it came down them hard and banned u.s. companies from doing business with them for seven years, which all but put them out of business they were so dependent on your suppliers. it's a big deal for china and the president saying too many chinese jobs lost is a little on for him and it is unclear
exactly what they're going to do about it. he told wilbur ross to try and find some solution, but ross has not announced anything yet. widget of wilbur ross speaking of the national press club of d.c. making some comments that seem contradictory to the new tone we are hearing is a, including that zte separate enforcement action severed from trade and he says that the u.s. and china remain far apart on trade. with his new sense of a rapprochement trade overblown today? michael: it may be. part of the problem of doing national below is a lightweight as there's only 140 characters and you don't know what's going into this. it may be that what the president is trying to do is get china's cooperation in a sanctions tit-for-tat. if the u.s. imposes sanctions on china for an electoral property theft, china and that it would
retaliate by not buying u.s. soybeans and hit the u.s. agriculture sector hard and there are some feeling the president says we will back off of zte if you back off agriculture, that would big deal politically for the u.s. in the midterm elections. there's also a thought that ande they can move the zte agriculture issues to the side, they can strike a deal on trade with china saying it will buy and bring down the bilateral trade deficit, which is what donald trump seems to really care about. but nobody really knows for sure and that's part of the problem with trying to figure it out. the markets are taking the most optimistic interpretation can be they hope their some sort of deal and we won't get into a trade war. futures rising 2% on the news we could see some easing of tariffs on the agricultural products. we have already seen perhaps some moves coming from the chinese when it comes to qualcomm also trying to acquire
nxp semiconductors. michael: we don't know that you are connected but it came at about the same time and maybe they are going to go ahead with their view and we will see that the approved. it may depend on the outcome of the talks this week. is a lot of questions about what the u.s. actually wants and what would donald trump takes a victory in his negotiations with china? hard to know, it's whether the markets are taking this anyway or not your -- or not. amanda: we have this quality deadline looming on the aft and we certainly know there are political deadlines out there. with the chinese trade delegation coming, is this the worst time for that kind of -- i don't recall a distraction, because it's usually important, but in terms of multiple strands of trade discussion going on, is that bad news for nafta? michael: it's very difficult to keep all these falls in the air for the abuse region, especially when the administration doesn't speak as one of these issues. robert lighthizer is the key
person at least in dealing with nafta. there are a lot of voices on china, but lighthizer is driving the nafta negotiations and easily going to be tied up this week with the chinese stocks, so they can move forward or not enough time is a real open question, because he's not going to be able to negotiate as we understand, there are no talks and mexico scheduled for this week. and the speaker of the house here has put a deadline of the end of the week on it. that's not really a hard deadline, they can fudge it and go another week or two, but as we understand that they are so far apart on the deal that it's hard to see it getting done and earlier today, the president's top economic advisers said he thought it was getting very difficult. he doesn't see necessarily a deal getting done. where does that leave us? does the president withdraw from nafta or let it go on, to the suspend the talks until next year? there's no plan b that we know
of. the deal in principle has been touted a lot. still farhey are apart on the roles of origins. if they can some sort of breakthrough on autos they can fudge some of the other things. there were five big things the u.s. wanted in some of those like dispute resolution they could set aside or agree to disagree on in the sunset clause they could just drop that whole issue. but an agreement in principle doesn't mean that you gotten all the chapter and verse. there's a question about the deadline for publishing the details of the treaty for congress to be able to look at, whether that could be done with an agreement in principle, nobody knows. michael mckee, great to have you with us, bloomberg's international economics policy correspondent, michael mckee. china inches closer to accepting this acceptance by the financial committee. the move the gnu game changer to
shery: this is "bloomberg markets," i'm shery ahn in new york. i'm amanda lang in toronto. china's mainland stocks are moving a step closer to inclusion, the msci is changing the makeup of three widely followed industries. collects foreign investors will soon gain much greater exposure to china through an denominated domestic a-shares. more than 200 large-cap stocks will be added to msci's emerging
markets through china and all country next is in june. it's a stab at financial credibility after three prior rejections. don't expect the economic equivalent of a victory parade, a-shares only account for .7% of the emerging market index. even a small slice of the pie is excited to bring billions of dollars in the china's equity market is index tracking funds by end and waiting for change in beijing carries out further market reforms. bloomberg's george leg joins us now. shery: we heard about what we are expecting from this. how much of that is symbolic and how much of it is a real step towards liberalization of the chinese market? now, it's paraphrase a small step for msci, it's a big step for china's markets.
a few years before, the u.n. was being upgraded into the imf special basket. year, being admitted into the bloomberg index. an onshore equities joining the msci family. shery: chinese markets haven't done that well. subscribers can actually see broader china etf's, how much inflow can we actually suspect? george: probably not so much right after the announcement because as you said, the broader shanghai composite index isn't doing too well this year. and down about 10% or 11% you look elsewhere across emerging markets and you got
large countries like brazil and russia, whose equity indices are up 11%, or 8% or 9%. these markets would offer much more attractive opportunities in the short-term. talking a morgan stanley last week and they estimated that in the very short run, the inflows related to this conclusion would only be about $1.5 billion, that's basically the positive index tracking funds that have to adjust their portfolios. over the long term, if chinese equity markets, performance picks up, this probably would be more influx and they estimated over the next year is probably going to be 300 billion dollars worth of inflows, which is $45 billion. amanda: obviously, there may be a lag effect come other than those who automatically do track. how long do you think -- have you heard from analyst about how
long before -- this is a step towards maturation. when we actually see a full inclusion with full waiting in this portion of the msci? george: there's going to be a lot of numbers out there for the estimates. a lot of the money they are already buying chinese a-shares, regardless of that conclusion because now we have the shanghai hong kong stock connect which every day will allow 52 billion yuan of inflow into the shanghai market and there's an equal amount of inflow into the shenzhen markets. mostly we haven't exhausted that daily quota for most of the time. is that foreign buying picks up, china will allow them to buy more than 100 billion yuan, which would be roughly $15 billion of inflows into the two major exchanges. so potentially could be talking about a lot of money. thank you for the
breakdown on the msci inclusion of a-shares. time now for the bloomberg business flash, the biggest business stories in the news right now. elliott management has sold its position in mall owner taubman as of the february filing, elliott owned 418% stake and has push for changes, including a potential sale of the company and taubman centers is in a proxy fight with another activist investor, led in buildings investment management. areanadian companies combining in the biggest merger ever in medical marijuana. aurora cannabis has agreed to buy rival med relief for $2.3 billion, aurora led the effort to consolidate canada's marijuana industry and acquired within 10 companies over the past two years. that's her business flash update. a sign of the times as our viewers may know, some of them
in the u.s. may not but legalization of marijuana is on its way to this country, the medical marijuana space alive and well in many countries pursuing increase legalization medical marijuana, this is a highly valued deal. in the u.s., a lot of progress has been made and we gainingng canada's etf a lot of ground and investor enthusiasm sending the shares of stocks higher. it seems a lot of canadian growers are eating out little or no profit. they need to expand production in revenue. amanda: it's a bid to get new production value are absolutely right. still ahead, and executive exodus at tesla. why the manager shuffle is making it a little more difficult for elon musk to burn his short-sellers. we had to san francisco after this. this is bloomberg. ♪
shery: this is "bloomberg markets," i'm shery ahn in new york. amanda: i'm amanda lang in toronto. elon musk shuffles as management team in a thorough reorganization and now, why one of tesla's most vocal , ist-sellers, jim chanos calling the flood of executive to partners stunning. dana hull joins us from san francisco. the good that elon musk has taken on the shorts at least rhetorically speaking via twitter. why is it making it so hard for him to pull this off actually squeeze them out? dana: bloomberg confirmed that doug field is on some kind of leave of absence and we are not white shirt for how long he will be on leave but that's a really
big deal. he has been in charge manufacturing it has been a key player in tesla for all these years. today we got a memo from elon musk that he's announcing some kind of reorganization of the company and this was something he alluded to in the last earnings call that there aren't many details as to what that means. over theok at tesla past year and a half, there has been a string of departures they typically when someone leaves, they announced their replacements, but that hasn't happened recently. we have doug field on leave, matthew's wall on the out of pilot team is out weibo. and everyone is asking what are the changes next? one thing that is difficult about tesla is a lot of people don't know the executives are. is no listing on the website of who the name executives are and there's not a lot of transparency is what positions people are feeling. shery: jim chanos weighing in saying it's not good we are senior seconds leave a time when the prices are at a high.
is -- hisrgued argument is executives are leaving money on the table that tesla is a very demanding place to work, and so sigrid. people are attracted by the clean energy mission as well as by elon himself. are other jobs in silicon valley and sometimes people are ready for a change, ready for a different pace and want to spend time with their families. the fact that the departures are happening now while the company is in the midst of this model three ramp has a lot of people shaking their heads. amanda: one of the things that so great is that you really do itemize the extent to which really senior important people including some included in proxy statements have left the company and as we do now, negative sentiment around the stock can be self-fulfilling, is this blood in the water for tesla? is it feel like some big thing to happen to pull this off? dana: shares today are down
slightly, but they are still trading at two dollars and five cents. it's not like shares changed on the news of doug being on leave or this reorg today. shares are some really high and he said himself the company's overvalued but short sensitive is very high right now, it's the most shorted stock in the market. any kind of negative news is going to be amplified. shery: what's the latest we have on the level three output? dana: we won't really know until tesla releases sales in early july of the quarter is like. the rumors in all of the tesla forms is that they are getting there, but i think the question raising these cars in high-volume edit high-quality and is there any kind of impact on the service operation? other cars fully functional or are they having to come back to service? everyone is very focused on production, but you need to look at are the customers super happy, are they coming back to
service at all and we won't know the full and active that for a while. -- the full impact of that for a while. amanda: dana hull with us from san francisco. still ahead, coming up wednesday, our exclusive st. louis fed president james bullard at 1:30 p.m. eastern. if you missed any of the charts, g tv is the function on the bloomberg and you can see the second chart about the chinese a-shares underperforming the broader hong kong and u.s. listed chinese stocks. find it g tv , live from new york and toronto, this is bloomberg. ♪
scarlet: we are live in new york over the next hour. we aree top stories covering from around the world. casino stocks rally as the supreme court strikes down a ban on sports betting. change of heart, president trump throws a lifeline to the te -- eiseman's next to short. the man behind the big short says the junior and -- german lender is this bank. mas gains and -- modest gains and big caps. abigail: a very modest to small gain for the three major averages or the dow, the s&p 500 and the nasdaq, investors taking a breather after last week's big rally for those major averages and