tv Whatd You Miss Bloomberg May 14, 2018 3:30pm-5:00pm EDT
there were no combinations. this is trump's spokeswoman said she will likely remain at walter reed medical center for the rest of the week. and to the violence along the israeli border with gaza escalated, the new american embassy was opened today in jerusalem. ceremony, thening benjaminister netanyahu praised the move. >> my friends, this is a great day for israel. it's a great day for america where it it's a great day for a fantastic partnership. but i believe it's also a great day for peace. but the palestinian authority president criticized the action, saying he will not accept any peace deal proposed by the trump administration. the u.k. in my five director andrew parker makes his case today why written and european union should continue their ongoing partnership on security
after brexit. he spoke today in berlin wall morning about continuing threats from islamic state and from russia. to u.k. is, of course, leaving the e.u. and our relationship with the e.u. must change as a result. but as our government has said many times, we are not leaving europe. in the prime minister's speech in munich, she signaled the government's intent to sustain this mutually beneficial cooperation and develop a u.k.-e.u. treaty on internal security, building on our unique history of partnership. european intelligence she sported to russia, saying moscow is actively seeking to undermine their democracy by disinformation cyberattacks and other traditional means of espionage. secretary-general antonio guterres is welcoming an announcement by north korea to close its nuclear test site. he says he's also looking
forward to the u.s.-north korea as another step towards sustainable peace. over the weekend, pyongyang said it would dismantle its nuclear test site in less than two weeks. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton, this is bloomberg. ♪ >> live from bloomberg world headquarters in new york, i'm julie hyman. >> i'm scarlet fu. rising modestly as trade tensions between the u.s. and china seem to ease. the 10 year yield falling just below 3%. joe: but the question is, "what'd you miss?"
troops clashing with tens of thousands of palestinians along the border leaving dozens dead. president trump makes sharp left turn from a trade war with china. themys he wants to help get back to business. in the supreme court deals of $4 billion hand to the gaming industry. jason robbins explain what the decision to overturn a ban on sports wagering means for his fantasy sports betting company. julie: "what'd you miss?" president trump changing his tune on china, at least for now. the president announced the commerce department is working to throw aent xi lifetime to. wilbur ross -- will throw a .ifeline to zte
>> they did some inappropriate things, they have admitted to that. the question is, there are alternative remedies to the one we had originally put forward, and that's the area we will be exploring very promptly. we're joined by alex .ayne i want to start with you there in d.c. maybe you can give us a little more insight into what's happening in these negotiations. there does seem to be some rationale here that perhaps iny're just softening on zte exchange for china taking another look at some pending acquisitions. seems to be a three-dimensional chess game going on here. and trump's tweet was just sort of moving a night in that game or something.
, tariffs, thete larger trade and economic dispute with china, it has all become interrelated. it's all one story. i don't think we can look at any single action in exclusion of all those other issues. sunday really took all of washington by surprise. i don't think anybody was previously aware that the president had concerns about jobs in china, and we're still friendly trying to untangle it. we are not sure exactly what he means. zte he want to simply give access to the u.s. suppliers that is been cut off from? does he want to allow the company to resume doing business in the united states? scarlet: why did this come up as an issue now? did the chinese delegation appeal to the president directly? is this a quid pro quo that julie was alluding to, perhaps?
thatdon't know if it is specific a quid pro quo, the chinese did resume examining that qualcomm takeover after trump's tweet yesterday. so there is the appearance of a butct quid pro quo there, what we've been told when we were 40 this on sunday is that the chinese have expressed to the u.s. that they are not even going to start talking about broader trade issues until the zte releases its grip on and prevents this company from collapsing. we've seen a number of these cte suppliers rally today. how much does this create urgency on the part of china to be less tech dependent? which is what part of the entire trade dispute is all about. >> china has a couple of different angles here. its it wants to expand
semiconductor franchise. it has been great at putting stuff together, but predominantly bosa those chips come from other places, career, the u.s., taiwan, etc. it wants to have an opportunity to grow that part of its intellectual property franchise. the second part of it is that the chinese ministry of commerce, which has historically but these big mergers and approve them or issued concerns were other actions have to be taken, but the company historically has had nothing to quoith any other quid pro potential from any other part of the government. in this case, like was mentioned, they've all been tangled up into one. so you have to look at it from the long perspective. china might say i want to further my semiconductor franchise, and can i get something from qualcomm in order to be able to do that for my
industry in the long run, if i --e to prove qualcomm remember the deal has been pending since october of 2016. so it's twists and turns across multiple geographies. there has been an activist investor but the final deadline for this is july 25, thank goodness. julie: so not just talking about qualcomm but across the semiconductor industry, what effect is all of this back-and-forth having on operations? just day-to-day, making decisions about investments, about other inmate day, is it sort of -- about other m&a? >> on a relative basis it .ampens m&a for sure not only for china but other jurisdictions, potentially in reciprocal response to china. ,ou're going to see big m&a
everybody takes a step back and trying to announce that, number one. his story climate -- historically, call it the sacrificial lamb, there's a small segment of this company typically from the seller or the target, a small segment that has been sold to a chinese state-owned entity in furtherance of chinese aspirations to become a semiconductor layer. scarlet: we started off by .alking about zte u.s. action began before the latest trade tensions between china and u.s.. this is an example of something bigger than both countries want to address. how representative is this of the bigger disputes between the two countries? a pretty goods example. it did begin under the previous administration, in fact. a lot of those officials that were involved in and have expressed some concern that the
president is weighing into a law-enforcement issue here. ,hat the u.s. is doing with zte trump's own commerce secretary has said it is not trade related, it's a law-enforcement issue that provides some background here, the company is accused of violating sanctions against iran, then lying about violating those sanctions, and rewarding executives involved in those transactions with bonuses, all against the direction of the united states. wilbur ross, the commerce secretary, just a few weeks ago said the company had behaved egregiously and need to be punished, and then here comes trump, cutting the legs out from underneath them. scarlet: suggesting everything is negotiable. , thank you so much. coming up, making strides in biotech. the chairman ceo will be joining
holdings, great to see you again. it's been about a year since i think we last spoke. you have greatly diversified your portfolio and you just had a very big transaction here. over a billion dollars here. oures, that was part of life sciences into tea were we made an investment in the , a virus in the immunotherapy phase. we've been working on it for a while. betty: event $8 million into it? >> yes. we cut a deal to sell it to janssen, a pharmaceutical ,ivision of johnson & johnson the total all in could be over a billion dollars, so it's a nice deal. betty: certainly it had a big return.
he's a guarantee you will get the billion dollars? philip: we will get $140 billion upfront and then there will be milestone payments which is typical for transactions like this in the pharmaceutical space. but the fact that johnson & johnson is putting a tremendous amount of effort around it, we feel for you comfortable with that. i know you've mentioned this, i read the transcript of your last conference call, for instance, where for some time it seemed investors were undervaluing your portfolio. you clearly think your portfolio has great value, but then your stock price was a reflecting. so you -- so do you think this is approving the naysayers wrong? philip: i think the transaction is hopefully indicative of the only across a portfolio but in life sciences. it's a little difficult to analyze our company because it is in a number of different industries. insurance, we recently
bought an insurance company, life sciences, telecom, so to the order versatile than your typical entity. betty: but there are other companies that are diversified, berkshire hathaway per instance. what were investors not getting, then? philip: i think people want to see that we follow through with some of the different things we are doing. they are looking at our capital structure at the same time and the fact that this is a relatively nascent entity for us, people like to see us, like to see the continuity with some of the different things we are working on. hopefully this transaction will get people thinking like, ok, there's a good deal of value here just in life sciences alone. i think now is the time when we expect the stock to start to move. betty: it certainly did move on
the back of that news. philip: not as much as i would has -- would have expected. betty: did you get a lot of phone calls? i'm curious if it will make it easier to monetize other parts of your portfolio. philip: i don't think it's a function of it making it easier difficult. it's taking the time to make sure we extract the appropriate value. i think this was really a testament to the different investments that we have a net portfolio because we do have more than one. mentioned, you're pretty diversified to. you have interest in steel, life sciences, manufacturing, but broadcast operations is another area you have just recently gotten into. why? into too much go detail around the cord cutting aspect, but we look at broadcasting is one of those industries that's been under followed. changes and market
the dynamics around how people watch television and what is happening in that industry, i think are changing, and this is a way we can really capitalize on that. 130, 140 bought over television stations across the country and that portfolio will continue to build over time. idea, give me a broader what do you plan on doing with this vast array of broadcast operations? philip: there is a tremendous amount of change taking place in media between the cord cutters, between all the competition and the over-the-top phenomenon. this is an opportunity where the entities that typically would not get recognized on the , you're not going to be searching for 50 or 100 different programs over-the-top all the time.
it has to be another different medium for people to get the eyeballs, as they say, and the television station with the move from analog to digital and that whole dynamic is really changing how people, and that whole process of the clarity, the content, is making the broadcast station that much more valuable. betty: how much can that disruption happened when you got these big media companies merging? you think of disney, fox, sprint. philip: those are all around the content side. we are not focusing on content. we cannot compete with adult content. we are the pipe, the distribution platform, and that's how we are looking at it. there's only so many ways that you can distribute content, it's either over the internet or cable or, quite frankly, over the air.
as people look at the opportunities are healthy over the air market has changed, and the fact that it's free, it's to stripping that content is what we are focused on, not necessarily the content. betty: last time you were on we talked about the vietnamese resort. since then, there have been reports that business has not been good. gambling has not yet been opened up in vietnam, so are you still in it? you are not going to sell? a matter fact, we are still in it. interestingly enough, we are in discussions with a pe shop, which i cannot go into detail, where we will hopefully get to where we want to be with that. , there'sen a long slog
no question. it has been there for 10 years now. we did make some management changes which has turned around the operation. is legalizing gambling going to be the key to get that business? a localfrom perspective, yes. they did pass the degree to give the different gaming companies the licenses. we are up forgetting it and i think we ultimately will, which i think will be a big step for it's 10 yearsut now, i'm looking at -- i have to focus on my operation here with regard to the vietnam casinos, still part of my other entity. in up,i hate to bring but the reports of how president trump might've helped you there in vietnam. did he? philip: the reality of it is, no. i wouldn't think that is conversation with the prime minister of vietnam, i would not suspect that my casino is at the
tip of his time. and if he did, nothing's changed so far, but no, i think that was a little bit overblown, but what can you do? betty: before we go, just on the macro environment, and speaking about the president and economic policy, do you find it easier to do business now than a year ago when i saw you? philip: there's no question, the markets have opened up, there is more volatility today but people are much more willing and open to do deals and there's a lot of transactions taking place in the market today whereas it was a little bit quiet prior. but we think that as it relates to opportunities, they are out there, and that's one of the good things we are looking at from a holding company perspective. betty: great to see you, thanks for stopping by. scarlet, back to you.
stock it's time for the of the hour, and it is symantec. shares have recovered on pace with their best day since 2012. abigail doolittle, today's rally has more to do with information about accounting issues that were bps of friday's big fellow. coaster really a roller for symantec. they were going to have to delay the reporting of the annual report and perhaps restate earnings and not really making a big deal of it, but saying it had to do with one whistleblower . lots of questions about what
that is. the stock plunged, saying they would have an investor conference call happening at 4:30 today. more information on what's happening, and my sources are saying it probably has to do with not actual fraud but likely the revenue recognition that perhaps they've been a little aggressive in terms of how they recognize revenue. they have multiyear contracts, do they pull it forward? joe: is it, to talk about proper recognition? abigail: this year there has been implementation of a new revenue recognition rule. theylikely on this call will probably bring that up and say that as the switching to these new accounting standards, perhaps there have been these issues. from a stock perspective, if you take a quick look at this chart, this is truly the definition of catch a falling knife. havingf risk here, and i issues with the enterprise
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scarlet: "what'd you miss?" stocks losing steam into the close. pressures between u.s. and china. i'm julie hyman. weisenthal. if you kidding in live on twitter, we want to welcome you to our coverage every weekday from 4:00 to 5:00 p.m. eastern. begin mother market minute and we start with stocks. stocks bouncing around in a tight range today. the s&p 500 looks like it will e-gov a small gain here at both. health care rising for the second straight session after rallied friday in the wake of president trump's comments on drug pricing in which he perhaps did not outline a worst-case scenario, energy rattling along with oil prices. real estate, utilities, and telecom are the lagging groups in the session. individual stocks, a lot of news
going on pushing stocks around today. we saw it strengthen many of the gaming stocks and mgm resorts, after the spring court struck down the ban on state sports betting. before it had been limited just to las vegas and in nevada, and now looks like it was red across the country. we will talk to the drive kings ceo of little later about that. symantec, we were just talking about this one with abigail doolittle, stocks plunging on friday after vague comments about an internal investigation led to a stock plunge of 33%. it's holding a conference call 30 minutes from now. the stock rising 9.5%. we will have details of that call when it happens. and sears holdings, this has been a fascinating story. for years -- sears saying it starting a formal process to for potential sale of assets including its kenmore brand.
the ceo sears holdings has a , which hascalled esl said it might be interested in buying some of the sears holdings. he has divested some of the assets over the past several years. but sears has not managed to turn it around. we will see if this is what finally does it. joe: that's look at the government bond market, starting in the u.s. with the two-year and 10 year, both of them up across the board. yield back up to 3%. that has been down to around quite a bit. we will see if there's some direction break in the coming days. i want to look at a one-year chart of italian yields. you can see where the election happened -- actually, you cannot see it at all because there has basically been no reaction, including the fact that despite it looks like there will be some
populace, nationals coalition that can ruled the country, investors just don't care. scarlet: they cared for a little bit earlier today. the dollar has regained some strength after the commerce secretary said china has not been playing fair on trade and the u.s. will impose still tariffs if a deal is not reached by june 1. as joe mentioned, the prospect of a populist government forming in italy is something that was supporting the euro. the pound fell to a four-month low last week versus the dollar. the real action was in the argentinian peso. the central bank change in strategy by easing off interventions and allowing the currency to drop. when you see the line go up, that's the dollar strengthening versus the peso. the imf also says it will not target any exchange rate or
standby loan that's currently under negotiation. your today performance of the peso, it's lost 36% of its value, or the dollar has gained 36% versus the peso. that's worst performer among emerging-market currencies. changed tactics. and finally, on commodities, not a whole lot of action. oil up modestly, above $71 a barrel and gold is down about .5%. in the: let's bring chief strategist for the quad group. want to talk to you about what you're looking at to get a sense of where we are and where we are headed. one thing you brought up speedily in the past is oil and a lot of people have an caught off guard. is this a worrisome development for you? peter: it's always wonderful to
be here. in our business, that is the one constant, is worry. that's what we're supposed to do all the time is worry. oil,o, when we think about it's still in historical perspective, it's real prices and that high. our policies are designed to get more out of the ground. the dollar has strengthened, which at the margin since we're in exporter it reduces demand. you've seen uncertainty in some foreign countries and that pressure on the oil price. we look at gold, silver, copper. there is no real price pressure there. there have been some bounces in iron ore and things like that but it's not a major concern. that to your first point of rounded out, it's kind of a snoozer in terms of both the market and things we are looking
at. the chartly speaking, for a lot of things look better than when you were on last, which was about a month ago. tech stocks close to their all-time highs, in many cases at the all-time high. proxies,tercard basically at their all-time high. this action that we seen in the last few weeks give you some confidence that what we saw starting in early february is not yet the start of some new bear market? i was on, last time which was a friday afternoon, everybody was worried. the whole thing smells like a wetom, and i got on here and talked about that. now there is complacency on the other side. outside of the strengthened these and mastercard, we talked about the russell, it's the only one to make new highs. it felt today. there are some technical
divergences. we look at the utilities, and interest rate that is not been able to bounce. the industrials a lot of to the s&p and the nasdaq. amount of warning signs out there but as i said, it's nothing to particularly get worried about. i always say that were money is lost anticipating something happening rather than waiting for the confirmation of that happening. we all want to be smart, we want to sell the highs and by the lows. that is dangerous. look for confirmation of that high or some validation of that low. we have not seen either, so that's why said it's kind of a snoozer. joe: we have this chart that scarlet brought up of the russell. peter: we made you all-time highs today in the we close below the high of the previous i come if you look closely on that. scarlet: you can see that it did
kind of rollover right there. peter: so that's just one little data point for today, where it did it all by itself. you want to see markets strong and in sync together. we just look for the weight of the evidence, and the weight of the evidence right now is blah. to take risk just to take risk because you are there, that's what the guys at draft kings are going to be talking about later. that is what that is for. this is business investment, investors money, when there's things to do come you do it, when there is not, use it that. julie: but not really an investment strategy, is there anything that is getting excited right now? business is about risk-reward. if you don't see the risk-reward in your favor, then there's something not to do. that is the hardest thing for most people to do, when they are
sitting in front of the screen or getting a management fee, they feel obligated to do something. that theu don't feel scales are tilted in your favor, then don't do anything. that is an important trading strategy and that is worth a lot of money for people. blah can last a long time, for couple of weeks, a couple of months. peter: i always say in this business, a day can be a long time. the news turns around and rallies. we trade a lot of different things. there are individual movements but in the aggregate right now, as you saw, again, you were just talking about the s&p is plus or minus at six basis points today. when you're period
going to have a risk-reward. the last time i was on and we said things are lining up your, this is an opportunity to take a bite. we are not there are problem that probably stick nature to say this is a point where were accelerating. to me, we're closer to the highs if we break the jay gray 26 highs, and there's confirmation technically and economically, and that something you might but wereo with, reasonably far away from that and we are certainly much further away from the february 26 low. so that's the accordion, and it's not that exciting. peter, thank you. we will keep this discussion going. this is bloomberg. ♪
mark: i'm mark crumpton with first word news. u.s. delegation includes white house advisor jared kushner and a ivanka trump, is now headed back home. the new mc will temporarily operate from an existing u.s. consulate until a decision has been made on a permanent position. it took place as violence at the border with gaza continues. more than 50 palestinians were killed, another 1200 wounded, and clashes with the israeli military. palestinian observer to the united nations has condemned the violence and describe the israeli actions as an atrocity. places massacre is taking
at the same time when the united illegally andica in a provocative way is opening its industry. mark: moving the u.s. embassy from tel aviv to jerusalem anchored the palestinian to seek east jerusalem as a future capital. first lady milani of from underwent a procedure this morning to treat a benign kidney condition. the white house as the procedure was successful and there were no compensations. she trump's doctors say will likely remain at walter reed national military medical center for the rest of the week. environmental protection agency administrator scott pruitt demanded and received unprecedented around-the-clock arm security protection on his very first day at the agency. internal watchdog has sent letters to two democratic senators disclosing leaked details about security arrangements to protect prewitt. the staff has previously said
the enhanced protection was triggered by death threats. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton, this is bloomberg. borish is still with us. we talking about that right now is not an inflection point, perhaps, but there are always things you are watching. you were just tying some threads together for us, some things we touched on earlier when we talked about the argentine peso and the action is having, falling to a record low. joe pointed out what's going on in italy with the lack of reaction in the bond market in italy. what are you watching for? we have to be sort of, if i could take hawaii and the volcano, you have to look for
those warning signs to see if something is going to blow and then spread over here and cause volatility. so we look at turkey, venezuela, argentina, italy's bond rates are 110 base points below ours. we go beast things and say wait a second, that could all be a drag on our growth. you look at the components of exports,e u.s., imports for marginal growth. where are our exports going to be coming from? we have these trade uncertainties which the president walked back over the weekend. we see the strength of the dollar. oil exports. where is marginal growth going to come from? that leads to a people. we have a more stabilize process, we have better institutions to deal with those who are less fortunate than the
rest of the world, so we don't see that sort of economic upheaval, but that economic an earlybrought can be and not so early indicator of weakness that we may be seeing here in our market. joe: how do you avoid not just turning something into a narrative, as opposed to just saying random things that don't amount to much? peter: because i always have on my shoulder the notion that it's a lot easier to make a bearish case about everything then to be an optimist. that's why some he people are out there and you see all the books. we are mindful, we try to look at the data and wait the evidence and be objective. so we see these things, but as i said, the market is not indicating that. the market is always right. i'm generally wrong, so i listened to the market and i try to have good risk management. founding boarde member of the robin hood foundation, and it turns 30 this
year. the annual benefit is tonight. talk a little bit about how the antipoverty initiative has evolved since you guys were founded 30 years ago. back then, you are focused on teenage pregnancy, for instance. obviously times have changed quite a bit. it's a great member to be a founding member and you have been here for 30 years. new york is the greatest city in the world, if i can say that. new york has been good to us and we wanted to be good that. part of the issue when we looked at 30 years ago is the evolution of robin hood, it has to evolve the technology, methodology, ways of helping those who are less fortunate. on the surface, we have done a great job. if you look at the pictures from the late 1980's, of food deprivation, health care and housing deprivation, we have a long way to go. we have had tremendous strides
with that. , we haveew leadership constantly new board mirrors to try to bring in expertise associated with how to best apply these things to poverty. of course the numbers, and i always love this, there is a distribution of income. you are always going to have a lower end of distribution. robin hood is all about mobility. from poverty on one side, and trying to keep people from falling into poverty as well, and making sure that safety net is tightened. scarlet: thank you so much, and congratulations again on robin hood turning 30. peter borish. breaking news on zte, the buys a bigaying it percentage of individual parts from u.s. companies. is reflective of the larger trade deal we are negotiating
with china and my personal relationship with president xi. the president turning things around with this discussion on zte. that's how it was putting the screws to it, preventing it from getting that stuff from u.s. companies. it's not news to him. it may be, sorry. scarlet: we will continue to keep you posted on developments with zte and the president. u.s. opens its embassy in jerusalem, following through on the president's promise. meanwhile dozens have been killed along the gaza strip. we will get some perspective from a former u.s. ambassador to israel. this is bloomberg. ♪
bloomberg business flash. amazon is said to be tested in new advertising tool that could rival google. the tool lets merchants buy stocks and follow shoppers around the web and lower them back to buy on amazon. merchants would only pay amazon when customers click. , the macroon team investing group that includes three portfolio managers and to analysts am a previously worked for another firm. according to people familiar, point72 has outperformed the industry in the first four months of the year returning 4.6% through april. york city's blockchain week has begun and the biggest event, consensus, is expected to draw more than a thousand people. speakers include jack dorsey and the fedex ceo, frederick smith.
it's a partnership with the new york city economic development company. some analysts say the conference could prompt a rally in bitcoin. that is your bloomberg business flash. scarlet: "what'd you miss?" over 50 palestinians killed in confrontations with israeli troops after tens of thousands -- casting a shadow over the contentious inauguration in jerusalem. i want to bring in the director of rice university baker institute. i know you were opposed to the president moving the u.s. embassy to jerusalem. now that it has happened, how can the u.s. make the best of this? how should the u.s. harness to goodwill that's been created in israel as part of a broader strategy to perhaps offer something to the palestinians? what is the path forward? >> i think the main priority for
the administration should be to reestablish it self as an honest interlocutoryd with the israelis and palestinians, to find a way peaced to negotiate a settlement between the israelis and palestinians. i think the unilateral move on the part of president trump to declare jerusalem as israel's capital, and moving the embassy to jerusalem, has obviously reaction ony bitter the palestinian side, and therefore the goodwill has to be reestablished by the united states. i feel it is very important for our country to play that key role between the israelis and arabs, and in this case specifically the palestinians, to move the peace process forward. so that should be the main priority. you are seeing on television screens, the contrast between
the celebrations in jerusalem of the establishment of the embassy in jerusalem, and on the other hand, the demonstrations, the violence, the death, the injuries in gaza and demonstrations in jerusalem by palestinians and in other arab countries. so it's really a picture of sharp contrast. and combine this with the announcement that it withdrawing from the iran nuclear deal. is there the perception in the mideast at this point that the u.s. is doing israel's bidding, and will that then also further damage the u.s. possibility to broker not just peace between israel and the palestinians, but amidst other parties in the region? >> you are right, there is this perception, especially in the arab world and in muslim countries, whether right or wrong, the fact is that of
course we have been and will continue to be a strong supporter of the state of israel. it's one of the tenets of our foreign policy in the middle east. certainly these, whole history of the u.s. involvement on the arab-israeli conflict has been to play this role of an instrument to bring the two sides together to produce peace agreements. we succeeded in doing that under jimmy carter's administration between israel and -- and egypt. under bush we won, we created the victory peace conference. we got the arabs and israelis in direct, face-to-face discussions that led to not only -- it was the framework for israel and jordan to get together and create the second piece treaty between israel and an arab neighbor. what i am saying is that the united states should really do everything possible to maintain
it's very important position at the honest interlocutory between the two sites. shouldrything possible be done to that end, i think. joe: is there anything the administration could do now to reestablish its position as that honest broker? especially given the perception that the movement of the enzi set that back. edward: it was very interesting, if you remember when president trump made the announcement a few months ago of moving the embassy to jerusalem and declaring that in america's view, jerusalem is the capital of israel. senior administration officials, committed leak work , saying basically nothing has changed. the future status of jerusalem has to be the subject of final
status negotiations, indicating that would involve, in jerusalem's case, jerusalem as the capital of israel and jerusalem as the capital of a palestinian independent state, living in peace and security thanks to israel. so there are confusing signals upfront and on backgrounders. where is the administration's peace plan for the israeli-palestinian settlement? applaud the administration taking the initiative to put this as a priority, but we have seen nothing of what that plan is and whether or not it's going to be tabled. julie: is this further complicated by the perception, perhaps, that neither side is necessarily open to talks at this point in time? it would take some significant misogyny from here, would it not? massaging from here.
>> this has become one of those dangerous frozen conflicts that is not going anywhere in terms of peaceful resolution. what you are seeing is increasing violence on the ground. this is a bad omen. right now, israel and the region is in a very fragile situation, from afghanistan, iraq, syria, gaza, theamas in situation is quite quite -- i would say dangerous. it israelien to military intelligence and security officials, they are certainly focusing on the dangers on israel's northern border with lebanon and syria, hezbollah moves into syria in the military sense, and they are predicting that there may be a conflict on israel's northern border. with conflicts in gaza, even in jerusalem by palestinians on the
inassy move and elsewhere the arab muslim world, the situation is fragile. i think -- in my long experience in middle east affairs and negotiations, when there is a loss of hope on the ground, dangerous things happen in that part of the world. i think the administration has to at least try to restore the hope that there will be a peaceful settlement. and let me say that that settlement -- this is very important. that settlement has to be based on the principle of land for u.n. resolution from 1967. peace formula will work. by that, i mean economic solutions, security arrangements. it has to be land for peace. julie: sadly it appears that we are a ways from that type of settlement. thank you for your perspective,
sir. we appreciate it. former u.s.jian, ambassador to israel. let's get to our first word news with mark crumpton. mark? mark: uk's foreign secretary born johnson -- boris johnson says the u.s. relocation of the embassy to jerusalem was "a troubling move." he discussed the ongoing violence today during a meeting with the french foreign minister. secretary johnson: we understand that some people have been provoking that violence, but on the other hand, there has got to be restraint in the use of fire. in the united kingdom, we do not agree with the position of the u.s. to move their embassy. remained absolutely committed to a two-state solution. military sayseli
there were no border breaches during demonstrations today in what is being described as the deadliest day of violence since the 2014war. twitter 50 palestinians were killed and another 12 wounded by israeli fire. the -- 250 palestinians were killed. former mexican president dissented fox tells bloomberg mexico does not get a good deal on nafta, "mexico will just be happy with withdrawing. we are already working on plan b." unfortunately, senor trump has been very stubborn on nafta, on borders, on the relationship with mexico. out: and time is running
for mexico, which will hold elections on july 1. hungarian prime minister viktor orban says his country's strong opposition doing allowing migrants into your does not mean ontarians have, in his words, "hearts of stone." -- hungarians have, in his words, "hearts of stone." he says their nations are helping people in africa and the middle east, in or closer to their native lands, and sensing this was a better way to address migration. officials say a pioneering vaccine combined with rapid response could soon bring the underoutbreak in congo control. the world health organization says there are nearly 40 cases .f suspected ebola infections this is the ninth recorded outbreak in the central african nation. been located in
90% of cases. news 24 hours a day powered by more than 2700 journalists in more than 120 countries. i am mark crumpton. this is bloomberg. julie: let's get the recap on market action. not a whole lot of action on the major indexes. it was a mixed day of trading and very light a of trading. , compared tolume what we have been seeing. after hours, we had new data from symantec, which was going ,o hold a conference call today of course after it indicated in internal investigation last week. that there is no material in verse impact on historical's. they provided some additional information on the investigation, but right now it's not looking to have any impact. julie: that call is still
happening. analysts were looking for more clarity on this issue. they got the earnings call and did not get it. maybe there will be more clarification -- bruno: -- >> we will keep you posted. julie: now let's toss it on over to joe. joe: thanks. "what'd you miss?." recent legislation by senator kiersten gillibrand -- our next guest says that before they pass the bill, they should ask japan first. noah, welcome to "what'd you miss?" explain the appeal. ah: in the united states, we have a lot of people who are d, may be call unbanke 7% of people who do not have any checking account and the postal
service would be a way to, you know, spread around banking services. there are neighborhoods where banks do not want to put ranches and atm's, and you could always go to the post office, and you can have a bank. rushing intobefore turning into postal banking in the u.s., we should look at what happened in japan. what did the postal banking set up in japan look like? noah: japan have one of the oldest postal banking systems and one of the biggest. a very large percentage of people's savings were kept in the postal bank, but it was government controlled and the problem is they were also a lender and midlands to companies . when the companies did not pay the loans back, a lot of the times the postal bank would continue to lending keep them on
life support, which not only would waste people's savings, but also those on the companies would compete with healthier companies and compete down their profits and basically it was bad for the economy. have -- maybe not corruption, but certainly politically well-connected people would loans from the postal bank, and it was -- even though it was this big public ethics scandal and crony capitalism and a lot of people got really mad, around the mid kuzumi,ands -- the mentor of the current prime minister abe, foth of this hard battle and called a snap election and finally one to move toward privatization. they have finally done it. japan is still being privatized. a majorityent owns
share, but it is slowly selling off at stake. and basically, it is going to be one of the largest private banks in the world and the biggest one in japan, yes. fear is if the public sector entity, the post office, is involved in lending, loan decisions stop being about quality and quality underwriting and start being politicized with money going to cronies of the government? so we get up crony capitalism lending to companies that are politically well-connected even though they are bad for the economy. we could also have predatory lending to poor people by the government. people think the government will act in the interest of poor people, but that's not necessarily true. we have seen with student loans, the government has underwritten loans forever and now outright owns the loans has been very aggressive since the late 1980's especially in collecting student loans. expungeade them less
will in bankruptcy, revokes people's professional licenses if they do not pay, very true, and collection measures put in by government. i worry this could happen to poor people who get loans from a postal bank. joe: what about narrower postal banking that does not involve simplending but is savings accounts, atm card, quality payment, given some of the issues we have seen in private sector banks like, say, a wells fargo, multiple account scandals. you could see the appeal of a plain-vanilla banking for the masses. i agree, yes. we definitely could. we should look at the alternative of forcing private banks to do the same, forcing them to put ranches and atm's in underserved neighborhoods, to get them involved and private service -- privacy of his
banking as an alternative to postal banking come up -- banking, but narrow postal thinking would work fine as long as it does not turn into a boondoggle of crony capitalism. joe: are there any other examples besides japan, when you look around the world, of the post office being used in a financial services instrument like this? are a lot. a lot of countries do have postal banking. and you know, japan's was extremely big and extremely active. but a lot of companies do have -- countries do have is to banking and is not a massive disaster. what you talk about with the narrow postal bank, i think would be absolutely fine. and there's lots of countries we could look to as a model for that, but we have to make sure it does not become a monster. joe: if we were to see legislation gain momentum in the u.s. toward postal banking,
would you expect a pretty massive fight on the part of private sector banks, where they could potentially lose significant market share? yes, probably. it depends, because in terms of retail banking, they might have something to worry about. in terms of lending -- i'm really not sure. it really depends on the proposal. my guess is a will in's and deadly fight it. no company wants to see the government morning on the market. noah smith for bloomberg opinion in san francisco. thank you for joining us. >> coming up -- the supreme court strikes down a 19 92 law. tohave the ceo of draftkings explain how this ruling will change what his company does. this is bloomberg. ♪
scarlet: "what'd you miss?" today, betting on individual sports was illegal in the united states except in nevada. the supreme court has struck down a ruling them a allowing states to decide on gaming as they fit. isftkings ceo jason robins in town and joins us now. great to see you. jason: great to see you. scarlet: this is something you were preparing for the possibility of. talk us through what happens next. do you press a button and it's all system goes now? jason: i wish.
last summer when it was announced the court was taken get the case, we shifted our focus to building a product for this. in that sense, we are in great shape. we have a product. and we are ready to go. from the getting up and running standpoint, there are a few steps. this clears the way for states, but states, most of them have to pass laws. they have to issue regulations. we are engaging with the regulators. we hope to be in their day one, but there is work to be done before that. scarlet: day one will come first in new jersey and delaware, i believe? jason: new jersey will be an early mover. delaware already has a form of sports betting. west virginia has passed a law, new york has a law in place, pennsylvania has a law in place. i think those will be the states that move quickly. and europe, released in london, if you want to bet on sports, they are all over the place. on the shops, on the corner.
you go in and place your bet. what will the market look like here? will we see a lot of physical locations you and what would be the breakdown between online wagering versus sort of corner shop next to yankee stadium? jason: i guess in the short-term, physical locations will be kept to mostly casinos and racetracks. there may be some states that allow for it in other places, but i think that will be mostly it for physical locations. online and mobile so far have been in almost all of the bills we have seen introduced in states, so that is the part we are really excited about. you mentioned the u.k. when that market started to develop, they did not have online and mobile. now they do. it's a huge majority of or the betting comes from. i think you will see that happen here much faster. julie: have you estimated what kind of money this could generate? now it's hard to estimate, but some people say there's hundreds of billions of dollars. estimates of 150
billion dollars wagered illegally on the black market currently. when's days decide they want to legalize and -- when states decide they want to legalize and regulate, a lot of that will shift them a depending on which states regulate. julie: how much potentially goes to the league's? the mba, for example, has said it wants revenue sharing with this. -- the nba. i hope most states will see this as a growth opportunity and not over toxic, but it depends on the state. some will have higher taxes than others. the leagues have asked for an integrity fee, which i think is a good thing. having them feel supportive and feel like their product, which they own and they create, they are being compensated for that, because there will be increased cost for them as well -- monitoring integrity, things like that. i think that will hopefully be a component of most of the
legislation. this will be such a big market that gets created, really that gets shifted from the black market, and there's enough for everybody from the state to leagues to us to casinos to have a lot of growth in this. scarlet: i'm glad that julie brought up the leagues. but want a cut of that, they are pushing for federal standards, a national screening board. what does that look like to you versus what the nba wants? jason: i think the national framework for them looks the same as what they are pushing in the states. i would think that that is no different, just making it congress instead of state by state. for us, it would be nice to have a federal framework because it didn't it -- then it is not , state-by-state, which is hard to operate. but we will be fine either way. scarlet: does this open up a massive market into sports betting? surely that will be the future. jason: our hope is most states
that in.w for e-sports our hope is that will be part of the regulation framework state-by-state as well. what do you expect to happen to the daily fantasy part of the business. how much of the appeal is people that just want action but cannot get it through the traditional forum of betting on? sports jason: i think it will grow. the reason why is most of our customers playing draftkings are betting on sports anyway. 80% say they are currently wagering on the black market, and i suspect it might be underreported given the nature of the question. i don't think much changes. hopefully we have a great product and they want to do all of it with us. and we see more customers which should grow the -- scarlet: new customers, you mean? shouldmore customers create more interest in every product we offer. scarlet: which sport do you
think will create the most interest? high: football is candidate to be the biggest. you never know, innovation and different types of betting practices -- julie: do you think they will be processed just like they are off the books? jason: i think most states will allow -- live betting will be a thing. if you're not happy with your that in the first quarter you can change it. scarlet: it is a short season though. jason: we see so much more volume in baseball and basketball. scarlet: that is why e-sports will be huge. it's all rather world. jason: all around the world. all year round. it will only grow over time. julie: you just bet on hockey. scarlet: you know me so well. julie: thank you for joining us, ceo. robins, draftkings
statementews -- the has been released from richard clarida. he says that he always supports the dual mandate -- perhaps not a surprise he says that, and he says he will take a balanced approach to meeting fed goals. those are comments he is making in this prepared testimony. he is scheduled to testify 10 a.m. tuesday in washington before the senate panel. we will be discussing that as well tomorrow. from new york, this is bloomberg. ♪
all elliott has sold a position february filing, he had a stake. he is a to be in a fight with another activist investor. united continental is pushing service connecting new work, new jersey 217 u.s. cities beginning october 4. it will also expand flights to warmer destinations like florida and california. it is part of united's push to connect with more hubs as a competes with alta an american. and the 30th anniversary in new york city tonight -- the event comedy from michelle wolf and music from jennifer lopez. robin hood spent almost $70 million on anti-poverty programs last year. that's your business flash update. joe: coming up, what you need to
caroline: this is "bloomberg we are live from boston, showcasing innovation diversity and power of the regional tech economy. we come to you from boston's institute of contemporary art. we will be live from various tech center locations in boston through the week. coming up in the next hour, investor and celtics