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free land and other ministers engaged in counterparts. ,he premiers that have engaged or opposition leaders, canada's business leaders. continually engaging. in order to put pressure on the americans as well as explained to them that it would be a bad idea to create restrictions or any other obstacles to trade with canada. the decision belongsin order too the american administration. begin their choice imposing these measures. we'll all be defending canadians interest in the interests of canadian workers.
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>> in the united states, 15-16 times, maybe 100 here are surrogates were there any made nice with the white house and went all over the united states. is it time to change canadian strategy? that we have to be prepared for anything. always chosen to try and be positive and constructive. of the same time, in canadian conversations with american friends, colleagues, and counterparts, the message has been clear. stand excited and firm standing up for american interests. the american administration made a decision today that we deplore and that will lead to retaliatory measures as we must it we regret that and we would much rather move together in
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partnership understanding no two countries have economies interwoven and mutually beneficial as canada and the united states. >> the european allies, you will be there. how will this work out? >> obviously, we have done a lot of work to pull people together around common and shared themes of the g7, protecting our oceans and empowering women to be more successful in the workforce, were dressing economic challenges that happen at home or around the world. every single g7 country is facing a similar challenge of demonstrating that growth can work for everyone. in canada, we were we -- we talk that is ath and similar challenge and responsibility for each and every one of our colleagues.
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willpproach is one we continue to emphasize the choice made by the united states today, have a goal of benefiting american workers. will lead tohis harm for american workers and american industries. are twoomies interlinked to not have significant disruption in american families and communities south of the border. that workingight together as friends and allies is extremely important for the prosperity of our citizens. closest friends and allies, canada, mexico, it shows we need tohave an opportunity benefit citizens
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and not to harm them. approachministration's , i've had conversations with the president and the vice , --ident they have an ideology based approach that is pro-american. have deathlyt harm understand it will american workers. how important it is with the -- unfortunately
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they will not discover that they cannot impose the measures without harming their own people and their own workers. you would have many conversations with the president and the vice president this weekend. what would you say today about the failure? >> i think people will made by anthis is for the american administration. my approach, our approach and our teams approach has been to work together. the all who demonstrated that we have a firm and united approach when it comes to negotiations and engaging with the united states.
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>> there is a similar national security investigation. what is your response to that? >> we will deal with this one with the next steps when and if they come. as i have highlighted many times, the argument that canadian steel and american armored cars and canadian aluminum in american fighter ats, could somehow be national security risk, becomes even more absurd when one tries to apply it to cars or car parts made inch -- made in canada. we will continue to make arguments based on logic and common sense in hopes it will eventually prevail against an
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administration that does not always align itself around those principles. tooken donald trump office, he made an effort to take the high road. your appeal leaders not necessarily taking that growth. at the end of the day, you and europeans are in the same mess together. has your strategy handling donald trump worked? >> we all know the relationship between canada and the united complexs a deep and one. combined with the unity and strength highlighted. times from the president himself, the fact that we are firmly united in the united states beyond political ideologies here at home, has been a strength in our approach.
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we will continue to stay united in the moment. i know canadians will be there for one another. we will do things to stand together and stand up for our interests right across country. that is what we expect of the government and of each other. >> in your comments, i do not think you have said donald trump us his name. it still takes a month for the tariffs to kit in. we have heard kathy described donald trump as a bully. do you agree with that assessment and is this enough? prime minister trudeau: i have been very clear that my interactions with president trump have been clear and firm. understood that i will induce stand up for and canadianrests workers and canadian citizens. it is something we -- we will
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always do. ,'ve made it clear to mr. trump president trump, donald trump, that our relationship goes far the interpersonal dynamic for two individuals, connections between canadians and americans are deep and broad and multifaceted, commercial, yourral, and just any of the decision by the u.s. administration will hurt canadians and americans. we regret that deeply but will continue to look for ways to move forward in a way that does our citizensr harm in both countries and away citizens today have. >> you asked if the measures are about theeaking
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is $16.6 billion of retaliation. it is the strongest trade action in postwar era. strong response and a proportionate response. it is perfectly reciprocal, but i want to assure you and canadians that this is a strong canadian action in response to a bad u.s. decision. >> if you're targeting -- what is your assessment of the impact on the canadian economy of all this? one ofinister trudeau: the reasons we are a country that believes in free trade is ultimatelybarriers
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affect your own citizens for most. as we have seen one american allowed to move forard the cost of housing american homebuyers increased. tariffs hurt local consumers. as was said, as we put forward subject to goods we will be consulting with canadians in the industry for 15 days to ensure there are not unwanted or undesirable things for canadians but efforts have been made to look at goods that have alternatives, canadian alternatives from countries with whom we have positive trade
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relationships. we will not leave canadians specifically out-of-pocket. is a i could, the list carefully considered and carefully put together list. we have been working on it for some time. saidthe prime minister has candidate is ready for everything in the past, we have been ready. knows howthing canada to do that our officials know how to do. i would remind people of our wasrience were canada prepared to retaliate and we had a carefully considered list in response to a ruling in our favor. the consultation is really important. to get useful feedback
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from canadians and we expect to to refine the list. you can start right now. said, prime minister has the list was put together with a few considerations in mind. one has been to support and defend the steel and aluminum industries. they are facing unfair barriers in their exports to the united states. it is appropriate the u.s. competitors should face equivalent barriers next running to canada. i would like to remind americans who may be watching and listening that canada accounts for roughly half of u.s. steel x it's. that is one consideration. consideration is looking carefully at choosing goods for which there are replacements.
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have looked to choose goods for which there is a -- a canadian alternative, the 25 or 10% tariffs, or, alternative produced by the country which is not the united states. for in useed to look products because we are mind love the fact that imposing tariffs on products as part of some kind of manufacturing chain could make us less efficient. a lot of work going into refining this. >> in your talks, t have advance notice exactly what you will do at the level, and if you have,
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why did almost the economic arguments fail? >> he will have to ask the president about that. we have made consistent and demonstrated interconnectedness of the canadian and american economies. we expect that in the coming days, there will be many members of congress, governors who will make representations directly to the white house on the negative impact -- >> that was the canadian prime minister along with canadian foreign minister -- foreign affairs commissioner. let's go to new york because mike pompeo is giving everyone an update on his talk with north korea. let's listen in. >> i'm confident we are moving in the right direction through the series of meetings. iday, the vice chairman and through ther
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visions of the future that they have clearly articulated. vice chairman is planning to travel to washington to deliver a person letter from kim jong-un. offers thed summit historic opening to boldly leave the united states into a new era of peace, prosperity, and security. two countries face a pivotal moment which could be nothing short of tragic till let the opportunity go to waste. in my conversations with sherman kim jong-un and today with vice chairman kim young, i have been clear that president trump in the united states objective is very consistent and well known. irreversiblee and -- president trump made it clear
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there is a brighter path for north korea. we envision a strong and thatcted north korea maintains the heritage and is integrated into the nations. we think people of the united states and north korea create a future find by friendship and , not by mistrust and fear and threat. we hope chairman kim jong-un positive future. proceeding with their eyes wide open and a clear understanding of the possibilities of the future. it will truly be historic. bold leadership if we are able to seize a once-in-a-lifetime opportunity to change the course with the world. president trump and i believe chairman kim is the kind of leader positive future. to make those kinds of
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decisions and in the coming weeks and months, we have the opportunity to test whether or not this is the case. happy to take your questions. >> one question each, it goes to, go ahead. >> thanks. last night, the state department told us the u.s. would be looking for a historic commitment from north korea before the summit would go ahead. you ended talks today early. can you talk about why you did that? did you get the commitment you and to the u.s. and north korea agree on what this would mean? >> we did not end of the talks early. we had a series of items to cover, topics which would make sure we were clear on what our expectations were and other expert patients. we achieved that. this was a difficult challenge.
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make no mistake. there remains a great deal of work to do. we make progress here as well as at the same time, the same progress that same conversations were taking place. we had all the time we needed to take -- make progress. >> our next question goes to michael from the wall street journal. that, theng up on senior state department official spoke to us last night and indicated the united states hopes to persuade north korea that its security does not depend on nuclear weapons. you have had three meetings with him and spent some hours with him. do you feel you have been theessful doing that or is difficulty in settling the issue or president trump is now talking about the possibility of having two or three summits and not just breaking these issues in a single meeting?
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>> yes. make no mistake about it. president trump and the administration completely understands. there is a long history of providing the security, the effort now is to come to understandings which convinced the north koreans of what president trump has said. we are able to achieve it and north koreans are in fact allared to denuclearize, elements of the nuclear program, if we convince them so their security is greater, that the continuing to hold onto the program, we have had a lot of conversations around that. the true test comes when we actually achieve this. many conversations about how we might proceed, so we can achieve the denuclearization of the
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world demands from north korea, and security assurances required for them to allow us to achieve that. >> next one, abc news. it a proposed summit. also, you look a vice chairman in the eyes and look in the room. what accounted for the progress? it has been such a roller coaster ride. accounted fort the change in do you worry can still change back? meetve had the chance to chairmanship -- chairman kim jong: twice. a great deal of time with each of them. i believe they are contemplating a path forward, one their
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country is not been prepared to make i-4. it will be their decision. they will have to choose a fundamental he different path than the one the country has proceeded on for decades. be to anyone's surprise that there would be moments along the way that is will not he straightforward that there will be things that look card and times where there is wrote block and sometimes perhaps they -- perceive it is insurmountable. the mission is clear, to push forward the present's directive to test the proposition to achieve that outcome. i know what everyone is following this minute i'm minute and hour-by-hour. it be a process that will take days and weeks to work our way through. there will be tough moments and difficult times. i have had this at conversations with him as well and they have given it right back to me. we are decades into the challenge.
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not ought to be either surprised or frightened or deterred by moments that it looks like it is difficult. >> will we know tomorrow whether there will actually be a summit? >> i do not know the answer to that. >> my final question goes to adam shapiro with fox news. >> i will to you with made real progress in the last 72's -- 72 hours. your question goes to, what are the conditions. puttingitions are president trump and kim jong-un in a place where we can make real progress. if it is a place where we do not think there is an opportunity to place them together, we have made real progress in the last 72 hours. completelk about denuclearization.
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my question is based on the impact of the allies kumal concerns to the united states ,ave about south korea influence, to withdraw that on u.s. military present -- >> i will not talk about the or what the ship of the agreement looks like it those things are to be held so the leaders have the freedom they need to make the right decisions. i will not speak to that today. the secretary of state now for 30 odd days i think. no daylight between the south koreans, the japanese, and the united states, with respect to our approach of how we resolve the issue with respect to north korea. i've spoken to my counterpart, i
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have spoken to president moon. we understand their concerns and the risks that can be imposed in the agreement that can be reached will provide an outcome that each of those countries can sign on to as well. >> what is essential for the creation for lack of a better term, whether it is economic, political, or military? the risk of that israel everywhere, not just in this particular space and we are keenly aware of it. i am confident the things we're talking about will not enhance the risk to any significant degree. we would not do that with south koreans or japanese, two of our most important allies in the region. >> thank you very much. scarlet: that was mike pompeo wrapping up his news conference on the status of the north
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korean summit. we do not know if it is scheduled for june 12 but appears -- it appears we have not gotten update either repost. saying they made progress and the last 72 hours in sending toward a summit and the president and kim jong-un. their goal is to put the president and kim jong-un in a place where they can make real progress. he also mentioned this is a process that will take days and weeks to go through it. will be painful and there will be tough moments. just observing this, this is always the case and you are seeing a lot of this played out in public. >> absolutely. asked again and again, are we on the same page here over what the nuclear is a and what it means for the two countries but he did say a lot of progress has been made and to get the two guys into the room ofether at that point, a lot groundwork is clearly being
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done. >> we should mention the news conference in canada between -- who are with prime minister justin trudeau it is still taking place. if you want to catch it on bloomberg, it is on life go p are actually, it just ended. that news conference, can -- canada announced reciprocal tariffs dollar for dollar. it will work it out 1646 thank you million dollars canadian against the united states. there will be a list of items that levy 10%, and another list will be levered 25%. wassked ultimately if this a big enough response to the united states, she said look, let's be clear that this is the biggest response in terms of measures against another country in this era. she said it isn't an appropriate response and these wooden kick in until july 1.
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a window of negotiations. you expect this from the eu so should we get some context? let's bring in marty here with us. quicklyponded fairly and are very firm, as julia said, pointing out these are unacceptable measures that the u.s. imposed on canada and other countries and they will work with europe to come up with a way to push back. >> yes. they will go to wto to start the bureaucratic process of challenging these. also nafta rules, which they're famously trying to negotiate, and they will go to a protest mechanism to oppose the tariffs. canada clearly ready to take the steps to show that they are not going to back down against what mistake byer to be a
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president trump. >> and after negotiations, we assume are still going on. >> she herself was meeting in washington yesterday. >> yes. withre slapping tariffs each other at the same time and trying to negotiate a trade deal is a unique way. say that weau did have set a red line. the idea that actually despite all of the negotiations that take lace, it could die again. dance, for us, it is a redline that we cannot go to. so where are we? >> i think that is what the market is asking itself. clearly, they are not happy with the trade war. it shouldn't come as a surprise to the markets were investors but at the same time, there was a hope that somehow it would get worked out.
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there is still hope that will happen. >> let's move on because we have heard from mike pompeo and the secretary of state. he asked a question about why the tongues with kim jong-il ended early. there is still a lot of work to be done. to get things in place for an eventual summit whenever it takes place? place? >> it is more of the latter. mike pompeoay that will get ahead of the president of the united states to announce that this summit was taking place were not taking place here that is the decision the resident will make and he will announce it either by word or bytweet. there was never prospect of that coming out. i do think they want to make sure that all the rules are in place before any summit actually happens. there's this narrative that donald trump really wants this summit to take place.
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but i don't think he will do it at the expense of looking foolish. there is a lot of work to do before you will see that summit. julia: real progress has been made in the last 72 hours. >> he did not do that today. julia: thank you so much. take.get an investor's benjamin segal joins us now. it is tough to price trade negotiations and to -- and tensions like this. >> if one unless and we have learned is to expect the unexpected. we are seeing a slight uptick in volatility. and what makes us more comfortable is investing more in the longer term, try not to do anything rash or react to headlines.
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the canadian setting july 1, if you want to play hardball, we can they hardball, but give ourselves a few weeks to cool off a little bit. leaving the door open. i don't think anyone wants a full on trade war. someone had to step up. the canadians felt they had to. scarlet: how does it change the narrative that investors had in, theor priced stronger dollar, that the you would go up and that the federal reserve would proceed with rate hikes as planned? the resurgence of these tensions change that in any way? can you go along with that assumption until proven otherwise? >> i think the latter. until proven otherwise, protective measures have run the risk of raising
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prices in the u.s., which would add to inflation. the fed would use -- would the that as a one-time issue and not look to price that in on a basis.tic clearly, there are negative effects on the economy from hype rices, reduce consumer confidence, which would act as an offset. remain onuld likely its current course unless there is real data to suggest it doesn't. more interesting is what is happening in europe with the italian measures. the real change we have seen is the likelihood that the ecb stays in stimulation mode. it won't follow the fed as early as we might have thought. risk appetite in europe remaining relatively robust. julia: do you think it is a positive thing, exact, because the ecb will not be able to as quickly as they
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would like? >> there is a positive and a negative. that is certainly a positive. it is probably a negative margin on the euro. it would be negative for u.s. returns out of securities. european companies that are successful globally and they are all talking to us about the cost benefits of the tax cuts. profitsnd here and net theglobal multinationals, u.s. subsidiaries, 15% more profitable than they were. scarlet: with his local paralysis in italy, i'm sure there are fits and starts. the two parties coming up with a finance minister, we will see if that results in anything. how does this change the global growth story we have been counting on? can you say definitively that europe will lose a step along
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the way the summer because of these tensions? >> we are running the risk. political turbulence in italy is not a new thing. 61 government since the end of the first world war. political turbulence in italy is not a new event. from rhetoric that moves tor affiliate -- europhilic euro phobic is a real thing. you have a number of voices of reason. i don't think anyone in italy or around the region wants an economic train wreck. pragmatism will prevail. it seems like it is prevailing in the u.k. as well. making a mess of it, but finding a model for a solution. julia: just to make the wind as conti is set to be sworn
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in on monday at 11:00 a.m.. right party will vote against the italy government. so who knows? the problem is that they -- the is that of the finance minister will be the minister for european affairs. for american, international investors, they look at europe and say, well, sable, same old it is a it of desk same old, old.old -- same old, same it is a bit of a basket case. you can have pockets of the market that will do well and leave pockets of the market significantly behind. europe is one continent, but many companies -- many countries
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and many sectors. variouspanies have high -- high barriers to entry. they aree areas where not really per dissipated and our strategy is quality multinationals, a big feature of what we follow. they tend to not detract from portfolio. a broad-based gradual recovery, better corporate governance, lower valuations, that is the long-term opportunity for u.s.-based investors. scarlet: have to continued doing your homework. thank you very much. let's get you the rest of the first word news homework -- headlines. overseas.tion from
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belgium swine minister criticized of the u.s. decision to impose tariffs on steel and aluminum imports from europe, mexico, canada, saying the action amounted to trade protectionism. >> we will introduce the procedure for the settlement of dispute. will take a lot of measures to react against a lot of protectionist measures of the u.s. administration. i'm hoping this will be possible to avoid an escalation because we do not want to have a trade war. juncker calledde it totally unacceptable and "this is a bad day for world trade." president trump offered a full pardon to finish desousa and is considering a full pardon for martha stewart and wants to
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commute the 14-year sentence of rob okoye bench -- rod blagojevich. president also said stewart was treated harshly for lying about a stock sale and that blog ---rich was -- blog oil-rich and that rob will going which -- was punished for saying things that other politicians say. on russian media today, president assad is said american troops should leave the country. global news 24 hours a day, on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. ♪ onia: coming up, much more tariffs.
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here is another look at dollar-canada asked her a relative or a -- after a retaliatory tariffs. from new york, this is bloomberg. ♪
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♪ it's time for the spider report. at the: we are looking xlt or the consumers seek out select sector are spider. space is thestaple worst in the s&p 500, indirectly
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reflecting the tariffs that the u.s. state imposed on europe, mexico, and canada. let's look at the worst performers for the xlp. kimberly-clark and clorox, kimberly-clark received about 60% of its revenue abroad. [indiscernible] and hormel foods, these companies have been involved or will receive effect from pork tariffs issued by china earlier this year. the idea is this will all escalate and could weigh on some of these companies. the consumer staple spaces the war sector of the year. the possibility of trade war and price were among these companies really weighing. let's get to the industrials sector. , down look at the xli
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1.5%. even some of the more traditional companies you would possible be hit and ,rade war, caterpillar, bowing gosteel and aluminum prices higher, that will cause their import prices to go higher. there is one stock trading higher on all of this today and that is u.s. steel. let's look at an intraday chart of u.s. steel. at the highs, up 8%, giving half of that back. what makes it so interesting is the idea that, when the stock was up at 8% religion today, a lot of that was perception in earlier today, a
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lot of that was perception in terms that the trade war would be good for u.s. steel producers. our viewers can take a look at this chart. from october to march, a huge pop, up more than 40%. now we are flatlining. much of all of this is already priced in. scarlet: the irony is that the steel industry and steelworkers oppose tariffs on canada. abigail: the other still companies are down. ak steel is down. : is down. -- alcoa is down. companies,s of other whirlpool and even sears holdings," costs right -- input costs rising. thea: this says a lot about
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nasty negotiations or potential failure. scarlet: thank you so much. coming up, a bloomberg exclusive. we speak about why go long on snap. this is bloomberg. ♪
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>> you look at a stock with 21% short interest and they have overplayed their hand. at these prices, absolutely. if you want to compare it on any metric to facebook or twitter, daily active users, enterprise value, you will see that snapchat going to ipo is the most expensive of the social media stocks. at the same time, they have captured more the zeitgeist. it is being lost on wall street rate. of that is because of their small, but very engaged user base. the push back is that the user base can be fickle. they are young. the minute a new platform comes on, they may flee to that. more of it -- facebook is a $500 billion company. they are fickle,
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but the amazing part about it is, generations he, when you hear zuckerberg -- generation z, when you hear zuckerberg talk, it is about privacy. itn i post something, disappears, whether it is a picture or a message. snapchat has that market. that's why they are so dominant with that jen z -- gen z. imagine one company that is bridged to one generation where people make purchasing decisions. it is amazing. they have not lost it. the redesign was almost a test to see how sticky this really is. yes, it was a disaster. and the conference call was terrible. but they did not lose their core user base. that is what is important. julia: whatever these guys do,
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facebook steals it, they have a bigger audience, but i want to pull out a headline. snapchat is $63 for the active daily user. >> look at it this way. offered $30gle billion for snapchat. since then, the business has accelerated. the daily active users have accelerated in and the excess cash is now a $20 billion company. investors have lost confidence. the best decision i should have made was to let my teenagers manage my portfolio over the last three years. the only stock they probably would have been down on right now is snapchat. with that, i don't think they are wrong. i think it is just time to buy more. scarlet: one of your calls was on snapchat he acquired.
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thatu said interesting facebook would knock off anything that snapchat does. whenever you have a company the size of facebook who is so dead set on killing a company like snapchat, a $13 billion company, only imagine which white knight, whether it be apple or google, would like to come in, take this over, and, come on, they spoke, let's rumble. they are sticky. they are there. they spent a lot of money on rmb based -- r&d. they spent a lot of money on augmented reality. snapchat, unfortunately, has had to work out the ups and downs in the public marketplace. julia: in recent weeks, the vice president of sales engineering,
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the cfo -- cfo fromrought the amazon. is probably one of the more important people. integrate who helped whole foods into amazon, will be a big positive and one of the grown-ups everyone said is needed in the snapchat culture. julia: what about profitability? you have the duopoly, the likes of facebook and google, if you want to tap into that market, you have a situation where the content disappears. they don't have the same kind of data provision and collection that those big guys do. >> and that is a good thing and a bad thing. for everyone who thinks snapchat there are 450n z, different categories that they offer advertisers. advertisers will follow the eyeballs. if you read the report, there is plenty of documentation from
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marketing weeklies and add weekly is discussing what snapchat is on the and attainment platforms, how you have to be there. you will see that modernization kick in. they expect profitability by the end of this year. i cannot comment on that. but you are looking at a company, if you are going to work on one quarter profitability, this is a much bigger picture than that. scarlet: we talked about m&a possibilities. you make ailing to fortnight, which is a game that has taken over every teenager's mind. owns 10% of big games, which created fortnight. >> that would be a stretch. i wouldn't want to be dishonest. tencent will help snapchat get into a videogame. when you have this generation
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and you see the important of gaming to this generation and you see tencent foothold in gaming with epic games, if they were with snapchat to monetize gaming, that is something they are in position to do. julia: what ultimately could have been here that rakes the thesis? >> here's the beautiful part about it. there so much negativity on the stock. all you need to have is a stable quarter and you can see 30%. if you look at where facebook is trading, where netflix or google or amazon is trading, what will it take for them to go up another 30%? if you look at snapchat, right now, if you get a stable order, if the financials are getting better, if you bring in some of the spending and go to the programmatic advertising they are doing and bring it on the platform, and that has been the growing pain, the first bump you get is 30% and then he goes from there on in.
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julia: i don't think i have ever seen you so lively. i think you should go along more often. [laughter] havethink my wallet should -- my wallet think i should have also over the years. it is what it is. with a 21% short interest, i would love to hate the stock. i would like to look at as it is is a dog. just need this company not to implode. --eed them to go on spring on script the next conference call and teenagers will do the rest. [laughter] we get it. thank you so much for speaking to us today.
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julia: i'm julia chatterley. scarlet: i'm scarlet fu. welcome to bloomberg markets. ♪
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julia: we are live in new york over the next hour. here are the top stories. steel or no still? the -- steel or no steel? speak with david o'sullivan. the battle over self driving cars, soft tank making an investment -- softbank making an investment in gm. boulevardteady, james -- james bullard says the fed should go big or not at all when it comes to raising rates. check on the markets. julie: if there were a crisis in the making, this is not the trading pattern we would say.
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downward pressure to be sure, but the selling is not much hotter now than when we came in this morning. before, we heard confirmation of all of these retaliatory actions, it had already been teased that, handheld at, by both the eu and canada and mexico in response to the steel and aluminum tariffs. this was perhaps expected on looks like nowt a trade war or the early stages of it. other major averages are down. we see some areas of the market where the response and the reaction is mark stark. look at the dollar-canadian dollar. rise.s. dollar on the versus the canadian dollar and wen taking another leg up as heard prime minister trudeau speaking earlier about the retaliatory tariffs that canada was putting into place. we are watching staple stocks.
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that had been the lagging grupo session, down now 1.5%. you see a. broad swath of stables companies whose costs may well go up as a result of these retaliatory tariffs. there are also food companies to watch. some of these retaliatory tariffs are on food items. we see companies like tyson down. brown-forman also down. harley davidson, not just foods and other types of items. finally, outside of what is going on with stocks today, got to come back to yield curve. eveningeen some recent -- re-steepening but it is mostly flattening again. you have the 5-30 spread in blue. 10-year flattening,
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narrowing. we have the said preferred measure of inflation at percent inflation. no-brainer today, backing gradual fed hikes in comments, saying the grade may go past neutral. in the background of all of this trade talk, we are still watching a flattening yield curve. now to firsts go word news with mark crumpton. mark: it has in a busy day. canadian prime minister justin trudeau level sharp criticism at the united states for washington's decision to impose i and aluminuml imports from canada, mexico, and europe. by clevelandoined retaliatoryg surcharges on $13 billion worth of u.s. goods. despite today's actions,
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premised are trudeau said that the connection between the u.s. and canada are broad and deep and bigger than what he called the internet -- interpersonal dynamic between him and president trump. >> this action will her canadians. it will hurt americans. and we regret that deeply, but we will continue to look for ways to move forward in a way that does not continue to hurt or continue to harm our citizens in both of our countries the way the actions of this administration today have. tariffs willadian begin july 1 until the u.s. ends its move. secretary mattis arrived in singapore today to attend a national security conference and to talk with key asian allies. mattis is expected to meet with india's prime minister and defense officials from the at
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malaysia, and the philippines. a comes before trump and kim jong-un meet, scheduled for june 12. the united nations. council is planning to vote today on a u.s.-drafted resolution that threatens an arms embargo and sanctions against south sudan. the resolution asked the secretary-general to report by the end of june whether fighting had stopped and whether a political agreement has been reached. in 2015, the security imposed sanctions on several south sudan military leader's. but a u.s. attempt -- leaders. but a u.s. attempt to impose a it -- and embargo failed. socialist opposition is said to have enough votes to beat lahore a tomorrow. the good trigger elections if he quits before lawmakers vote on that measure. global news 24 hours a day, on
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air and on tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. ♪ scarlet: thank you -- julia: thank you. wilbur ross announcing that the united states will proceed with tariffs on imported steel and aluminium from europe, canada, and mexico. we are joined now by david o'sullivan, the european union ambassador to the united states. thank you so much for joining us. the eu nations must be deeply frustrated by today's announcement. >> yes, we are extremely disappointed. we are not entirely surprised given the echoes we have been hearing the last few days. we always hoped it would be possible to avoid this situation. we have done everything we can to engage. with this administration, to .rovide assurances
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positive agenda how we can grow and improve trade between us. unfortunately, this has not been successful. today, we are disappointed the united states has taken the decision to impose these illegal and, in our view, totally unjustified tariffs. scarlet: for weeks, the european union has threatened, that without an excursion, to complain to the wto. give us a sense of what the eu is considering. >> we have always said, if tariffs were imposed, they are illegal under wto rules and we will take the case to the wto to have a definitive judgment on that. we also said that we would exercise our rights to impose what we call rebalancing tariffs on equivalent amounts of u.s. exports, which is the way in which we now intend to proceed, announced by president juncker and cecilia nostra.
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scarlet: in terms of timing, we heard a couple of hours earlier today from jean-claude juncker. what are we looking at? >> we have already taken the necessary steps at the wto. there are built-in deadlines and we would expect, from june 20, we will be legally in a position to do this. there will also be sim internal be someion-making -- internal eu decision-making in early july. claimingis it the u.s. that the tariffs are to protect alsonal security, is it does say that it is for national security to the tariffs on u.s. goods? >> no, we do not find it convincing that steel and is of a broader
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u.s. economic interest. useful components, enabling american companies to produce better products and be more competitive. we really don't believe that case has been made. the imposition of our rebalancing tariffs is based on wto rules. when a country illegally or unfairly imposes tariffs coming have the right to rebalance. we are not claiming there is a security interest on the contrary, we don't see how a question of national security could arise between such close allies as europe and the united states. julia: why do we think this has happened? eu has done that everything they can to reassure the united states. we have wilbur ross saying that it wasn't enough progress made in discussions. but the eu tensions are not the only issue we have. the an estate is fighting with china. they have been i enable -- been
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-- theyo a ground after have been unable to agree on nafta. we have to acknowledge that this administration came into office, president in particular, on an agenda and a program saying that america has not gotten a fair deal out of the international trading situation and the situation to rebalance that. we don't necessarily share that analysis, but america is a friend and a partner and are willing to our best to listen to the arguments and see if we can to listen to -- the arguments and steve we can find mutually acceptable situations. on for chile, the administration has -- unfortunately, the administration has decided to take this action, which is not legally based on the economic interest. i am position on
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china. we would much prefer to be making, and with our american friends on issues rather than squabbling within ourselves. julia: it is not the only issue of the trade tensions. we have the eu and the united states offsides on the iran nuclear deal, and on the paris climate accord. is trust ultimately being broken? >> again, we have to acknowledge that the american people have chosen president trump as their president and he was elected on agenda based on skepticism on these things. when there is a change of administration, it is not surprising that we face new challenges. we are disappointed by these decisions. we regret them, both of them.
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the strength of the transatlantic relationship remains very strong. believe we will continue to engage and try to find mutually acceptable solutions because this is a partnership that we value and we want to try to understand where america is coming from. it is true, these decisions today, make that more difficult. julia: do you believe this president is trying to buy votes at the expense of world trade? >> i would never make a comment like that because i take we all have our democracies and governments get elected on a certain platform and governments feel they have to go forward on the agenda which they use during their election. the challenge here is that europe and other countries also to have democracies and constituencies and want to defend their interests. the only you can do that is by sitting down around a table and find a mutual -- mutually acceptable outcomes. unfortunately, unilateral actions undermines those
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actions. we would have preferred to be engaged in a positive and constructive agenda of growing trade between us, not limiting it. scarlet: i want your take on what is going on in italy. obviously, the populist movement in the league party have reached an agreement on the prime minister and the european affairs minister as well, a eurosceptic. what kind of message does that send to the european community? >> we have 28 by rent democracies use -- we have 28 vibrant democracies. we sit around a table together. we listen to what the newly elected government in any country has to say. if they have any issues, then put them to the table and the european way is to listen to that. i remain confident that italy
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will remain a founder member of the european union and the euro currency. and italythe polls and they're still strong support for everything european. they will be listened to very respectfully. scarlet: thank you so much. from new york, this is bloomberg. ♪
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julia: this is bloomberg markets. scarlet: shares at general motors and zooming ahead after softbank announced it would billion..25
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softbank has a lot of money to play with. it can invest in a letter different players. why gm? >> they have a lot money so they can choose everyone. they can spread their risk and bet on as many different people as they like and and at the backing a winner. this is the latest horse. they arty put money into uber. -- they already put money into uber. they are very invested in tech companies. julia: money to throw around. is raising money from places outside of the united states, sovereign wealth funds in the middle east. be when will that money you have a u.s. administration
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that is touchy about war and money. >> that is the nantz's way of saying -- that is the nicest way of saying. theyhate anything that think of as an sle, having influence over u.s. technology. we saw that with qualcomm. softbank had his moment with trump. they played best buddies. does that mean they get a pass? there is so much foreign money in division funds, they will not cruzinfluence over this gm vehicle, but it does beg the question. why would they not get looked at when others do? announcingat also building 62,000 revelers car is. do we -- driverless cars. the view is that waymo has
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the best tech, but not the best ability to build the cars. gm may be further ahead. .ou may have to marry those two there isn't a clear winner yet and no one has built the oma -- the ultimate robotech. that's called level 5. whoever gets there first is likely to have a first mover advantage. late -- john lit managed to do it. now what? >> now he will push his agenda. we have a vague idea. he may look at selling some assets. he may try to sell the whole company. the come -- the market is not overly impressed.
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julia: he already started pairing his position. scarlet: he's not the big stakeholder he once was. hedging because he did not get added to the board? >> he is on the board. we should assume he can have some influence, but it is only one seat. last time around, he asked for two seats and did not get either of them. this time, he asked for one and put himself on the board. said.t: so well later today, a bloomberg exclusive with james bullard. he will talk about the impact of tariffs on the u.s. economy. from new york, this is bloomberg. ♪
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♪ julia: this is bloomberg markets. scarlet: it's time forscarlet: options insight. joining me today is steve
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from interactive brokers. yes, we see an increase in the vix,. huge. in the vix, not huge. what we have been getting is .uch website -- whip sawing the market does not know what to do with this information. it becomes difficult for the market to process not market events. the tariffs become a market in event but with politics in a way mark -- and that markets are not comfortable with. julie: we are looking at the vix curve and the changing tenor of the vix curve over the past week, couple of days even. talk to me about what we are seeing here and how things have
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been changing. >> the bottom curve, the yellow one, is where we were a week ago. that is normal, upward sloping. i heard people going into the short trade, which borders on insanity. that did not work out. tuesday.ine is you see the big spike at the front and in the upward shift in the whole curve. in the last couple of days, the blue line is yesterday. the green line, second from the top, is today. we gave back a lot. there was certainly a short panic on tuesday. we have not given back all of it. you can see the whole curve is higher higher -- riding than a week ago. julie: let's talk of about cisco systems. this is far from the big cap tech that we talk about these days, momentum trade, if you
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will, the amazons of the world and facebooks of the world, which continue to do well. -- cisco was the systems was the amazon of its time. it was the bellwether. it looks like they were flirting with new highs before the most recent earnings report. they sold off and have not come back since. they have been meandering lower. the stock is dead money. it is really not moving at all. but it's got lower highs and lower lows. so how do you play that? do you buy puts? i don't want to pay 18 for something that is moving. so that money call, the 40 two half in this case, we will do this fair short-term. when you sell them very short-term, you are writing down the and of the time period, the
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options decay over time. it fell off a cliff in the last week or two. i would suggest buying an upside call to hedge. julie: ok. thank you so much. bloomberg, james bullard talks about the impact of tariffs on the economy and much more. it is an exclusive interview with him later this evening. scarlet: we have plenty of charts here, including these on steel imports. it's called allies versus rivals. this is bloomberg. ♪
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♪ mike pompeo says efforts to set up with a summit between president trump and kim jong-un are gaining traction.
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he made remarks after meeting today in new york with the former north korean intelligence chief. >> this is a difficult challenge. make no mistake about it. there remains a great deal of work to do. asmade progress here as well in the other venues the conversation was taking place. we had all the terminated today to make the progress that was achievable. is theim jong-chol first top official to visit the united states in 18 years. they are also meeting with korean delegations in the demilitarized zone and singapore. with hurricane season starting tomorrow, officials in washington and puerto rico are preparing for another catastrophe that cuts power on the island for weeks or possibly


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