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tv   Bloomberg Markets Americas  Bloomberg  June 4, 2018 1:00pm-3:29pm EDT

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on the president is responding to years of trade abuse. china says the u.s. imposes tariffs on chinese goods, beijingill back out of commitments it made to reduce its trade surplus with the u.s. secretary-general of the organization for economic corporation and development says the trade fight could hurt growth. >> we are growing up close to 4% speed before the crisis. this has the potential of slowing down the recovery because it infringes on the level of confidence. are: america's allies headed for a showdown with president trump this week at the g7 meeting in quebec. residents of london high-rise were wrongly told to stay in their apartments as fire raised through the building in june of 2017. that is according to a new report by a fire safety expert. barbara lane says the fire department policy failed and
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residents were not told to evacuate for more than one hour after that blaze began. report washe published by an inquiry investigating causes of the blaze that killed 72 people. police officers from 40 departments in wales are returning to their home assignments three months after they stepped in to help local authorities respond to the nerve agent attack on a russian expert. the police department -- department would serve salisbury to spend $10 million dealing with the aftermath of the march and his on sergei daughter who both survived. former president george h.w. bush is out of the hospital. his spokesperson confirmed on twitter today that the is appreciative for the terrific care and many good wishes he has received. mr. bush has been in a houston hospital since last weekend. he was being treated for low blood pressure.
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global news, 24 hours a day, on air and at tic toc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. scarlet: it is 1:00 p.m. in new york. 1:00 a.m. in hong kong. i'm vonnie quinn. shery: i'm shery ahn. welcome to "bloomberg markets." vonnie: from bloomberg world headquarters in new york, here other top stories on the bloomberg and around the world. he did not do it. the global trade war, but the president's top economic advisor remains to find that the administration. apple mania. apple's worldwide developer
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conference has kicked off or it bring you the software strategy update and a hardware. microsoft agrees to buy getup for $7.5 billion. we hear from microsoft ceo. first, new yor -- we are halfway into the trading day. stocks are higher, broadly, but there is some negative news. >> there are areas of weakness we have all three major averages higher. they are near the highs of the session. especially as we see the nasdaq and s&p start to catch up more. and paste the advance in the dow jones and industrial average. subgroups that is lower is transportation stocks which is interesting. this is a group that has seen -- has been seen as an economic bellwether. .5% right here to we have weakness in the various types of ground transportation companies. pacific, jb hunt,
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and landstar system's lower. it does not seem to be -- there does not seem to be specific news other than what the class cow says is a risk off tone to this group in today'session. elsewhere, getting to a group that has been leaning -- leading the moves as of late, technology. apple, for example, as it has that developers conference. you see the shares rise 3.30% over the past two days. trading at a record. they are doing the best in one on that today basis with that 3% gain. also, other technology doing well, it brought technology rally, especially in large cap, microsoft rising to a new record after that agreement to acquire for 7.5 billion dollars. out of that shares trading higher as well. it does not -- there does not seem to be a lot of news there. among theoing well chips here.
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according to bank of america merrill lynch, graphic chipmakers may benefit because of expanding adoption from the pc gaming sector. and minimal risk from cryptocurrency from that benefit rolling off. those two stocks trading higher. we continue to watch the m cap race between microsoft and google specifically. the two largest companies by market cap at this point. apple and amazon. these two vying for number three. -- off itint, google is slightly ahead of the race. -- off it is slightly ahead of the race. $794 billion in market cap. microsoft sits at $781 billion. with all these records and momentum in technology, who is counting? we are. shery: yes we are. julie hyman, thank you for that. president trump heading for collision course at the g7 summit. some of the closest allies of the u.s. are lashing out condemning president trump's
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tariffs and vowing retaliation. china is warning to withdraw commitments it made on trade if the president carries out a threat to impose tariffs on the country. here with more on the trade tensions is bloomberg's trade reporter, jamie letter joining us from washington. are we to assume that those meetings between secretary ross and chinese officials in beijing over the weekend and not go well? >> yeah, we still have to see from the white house what specifically he came home with. so far, it seems like not much. went over tohe finalize the deal on agriculture and energy exports. the chinese said if you move forward with the tariffs on the 50 billion worth of chinese ar, we wilplay ball.that is when impasse right now. the ball is in president trump scored. is he going to go forward with those tariffs? is he going to go forward with attacking eyepiece and forced tax transfer? or is it going to sign off on a
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deal that will allow the chinese to buy more products to the u.s.? the ball is in president trump's court. we have to see what the white house considers the path forward. vonnie: what could be the path forward? if there is an absolute bte deal, might that help? does that the one element of what china is looking for? jenny: it is definitely one of the biggest elements in the whole puzzle piece tchina is looking for. mated aese have precondition to come to the table in the first place to talk about any u.s. product that zte will get a pass. the deal has not been finalized. we don't know what the fine will be, what the details of a deal might be. but that definitely helps to move the ball forward. then we will see what they will and energyct products. then we will see what the u.s. will do on the tariffs that china says, do not impose them or what we are stuck. it seems like right now we are stuck.
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we just have to see what the white house lanes to do next. administration is stuck not only with china but with its allies and trading partners. the u.s.istration keeping firm with topic -- top economic adviser, saying this is because of trade views. take a listen. don't blame trump. europe, blamelame nafta, blame those who do not want reciprocal trading, tariff rates, and protectionism. trump is responding to several decades of trade abuses here. mr. kudlow, we have been saying, the canadian prime minister trudeau was overreacting in response to u.s. tariffs. whether or not he is overreacting, we know that countries are reacting. tell us about what europe, canada, mexico, and so on are doing in response to the u.s.? jenny: we saw last weekend, in
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canada, the g7 finance ministers meeting. that this was high on the agenda. some of yourffs on closest allies, of course, will draw critici. we saw from treasury secretary steven mnuchin that he told his counterparts, i am not your guy. don't come to me. you have to directly appealed to trump. you have to tell the president that you want something changed on the tariff situation. that is what we are looking at at the g7 leaders summit this weekend. the u.s. allies are heading back. we see kudlow getting in the debt -- getting in the defensive. always talk him out of the weekend, saying we are added to six plus one. the u.s. totally isolated. kudlow coming to the defense of the president and thing the president is responding to something he sees is unfair trade. tomorrowariffs go live on canada, mexico, and the european union. will we expect more statements from leaders? we have had so many from yours
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in particular. we're i would say definitely seeing a lot more -- not just the leaders, but i think this is going on on every single level that you can imagine. are still outs there. so far, they are stuck. now everyone shifted their attention to the tariffs. that is something that the leaders still have to discuss. lower-level advisors have to discuss, like where we are going with nafta. we saw the u.k. prime minister come out and say she is disappointed that the u.s. took that step. you was talking with the president on the phone about this and looking for an alternative way. i think that is whare looking for this weekend. please appealing to trump on what will resonate with him? vonnie: jenny lenard is keeping and i on it for us. our thanks to you. coming up, we will hear from microsoft ceo on the company's decision to buy guitar. this is bloomberg. ♪
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♪ is "bloomberg markets." i'm shery ahn. vonnie: i am vonnie quinn. microsoft has agreed to acquire popular withe software developers. this eeo returning to its roots, serving the tech community. the sharp turnaround from where microsoft was a decade ago. emily chang spoke with the microsoft ceo earlier today. about what isk happening in the world around us, computing is being embedded in every place and everything, it is impacting our daily lives and our economy from precision
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agriculture to position medicine, to personalize education, personalized banking is being driven by software. every company is becoming digital. that world is being billed by developers. there is a linkedin stat which ows that development in n-technical been a's, developerson-tech retail or energ is growing by double digits. 25% higher growth rates there then even in the tech companies. that just shows you that we are in the early innings of what is going to be a set of tools and staff services that are required to empower every developer out there. that is the wrist strategic rationale. if you think about microsoft, we have always been a developer company. that is how we got started with the developer tools. now we are all in on open source. with that big -- but that coming together, that makes a lot of sense to us. we can country viewed a lot and stay true to the original a post of github. operatehow we will
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going forward, which is being developer first. emily: github has had issues finding a way to grow revenue significantly. they rsed $2 billion a few years ago. is microsoft going to do differently ty the $7. billion price tag? satya: we feel very good about the growth rate that github has. github starts, whether you are a hobbyist or student, or a small or a person working on a large company, wants a private thing to use github as a free service. they have done a good job of having the premium model going from the free service to paid ions for organizational use. we think we can scale that. by staying true to building that service up and making sure it is an open platform for all tools, all clouds, all platform targets as well. we think we can bring a lot in
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terms of scale, and reach, two additional customers and additional channels. we feel very bullish about what we can do for developers on -- on organically growing github. there has been consternation in the developer commit -- community about this acquisition. some critics saying this is a sad and to github's independence. the lists of reasons why is unloaded how do you reassure them and bring them along? satya: it is a very critical element to this. we are very committed to keeping the developer first defense of github going forward. that is why we have really -- between chris, the ceo for github, we decided to run this company independently, even post close, operated as a open platform. --t treatment who came to us that person knew came to us has open source convention rolls --
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credentials are he will be the new maintainer of github. he will stay true to what the -thub community depends demands. will have to earn the trust, there is no question of that. our actions from the recent past should assure every open-source developer of what microsoft intends. areou measure us by what we doing going forward and hold us accountable. vonnie: that was bloomberg's alameda chang -- emily chang. shery: it is time for the bloomberg business flash. a look at the biggest business stories on the news. sell three $.5 billion worth of royal bank of scotland shares. that is about 7.7% of the stake it acquired after bailing out the edinburgh bank lender during the financial crisis. the investment is the first for rbs since 2015 and comes after the lender reached a $4.9
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billion preliminary settlement with the u.s. over the seal of toxic mortgage bonds. the sale reduces the uk's stake to 62%. scientists shares are up after reports that its experimental therapy could advance ways to treat malignant and stubborn cancers. gilead's unit assigned -- signed .his gilead is a belt -- is building a pipeline of cancer drugs after years of success of treating hepatitis and hiv. is betting $2 billion on the pga tour, it is investing in a deal that includes tv and internet rights to the u.s. space men's golf circuit. discovery ceo says he wants to make the companylobal and live sports. tothe idea is we are going build -- we own together, as a partnership, globally, pga tour, and this whole golf ecosystem.
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the fact that it is through 2030, is a huge deal. we also see this as a partnership we will grow together for the long-term. shery: that is your business flash update. as vonnie isis is doubling down when it comes to their international overseas market. pay-tv, not as big of a deal as it is in the u.s. that is telling you how sports could be bid up in the future. vonnie: they have spent one $.4 billion on the olympics a little while ago. it was a sick -- a success for them. people downloading an apt to follow that. there are -- they are hoping to replicate that with the $2 billion in 12 years. half of the pga men's players are from outside the u.s.. i didn't even realize. shery: that is true. golf, a huge thing abroad. my parents are hooked, addicted.
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still ahead, apple ceo tim cook on stage todayuncinghe company's latest software update and roadmap at its annual developers conference in san jose, california p are we will have the latest. this is bloomberg. ♪ e the latest. this is bloomberg. ♪
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♪ vonnie: this is "bloomberg markets." i'm vonnie quinn. shery: i'm shery ahn. apple kicked off its annual's worldwide developers conference in san jose, california. the company is laying out its software strategy for the next year. teasing future hardware ambitions for what we can expect, let's go to san francisco where bloomberg technology anchor emily chang has been following the story. emily, what is new at this conference? emily: tim cook has left the stage. apple vice president craig is softwarebout engineering and ils. he has talked about new updates to ar developers tools.
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he is showing off a new apt they hauled -- they have called measure. allows you measure things in real life. but using ar technology. onstage, tim cook tout the progress they have made in the app store. he said there are over 20 million apple developers around the world. 10 yearstore turned old next month -- turns 10 years old next month. the app store getting over 500 million weekly visitors. today's conference is all about software that are we will hear little about hardware. and while ios is incredibly important, they are unveiling ios 12. it is about keeping developers in the ecosystem, not wanting to develop not just for the iphone, but also for the mac and apple tv and for the watch. startedatforms have looking shabby to developers. apple needs to keep them in the full because they want us to become even more connected to
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our devices. later in this hour, we are expecting them to unveil some new tools to help track how mu time we are spending on our apple devices. apple has gotten a lot of heat from critics for their lack of responsibility when it comes to monitoring tech addiction. we are expecting apple to unveil some sort of tool -- some type of tool to monitor how much time we are spending on our gadgets and these apps. apple has sounds like decided to really -- nonperformance. so that app developers don't get frustrated and consumers. emily: yes. craig talked about how the company is doubling down on performance. tosays this is largely due custom silicom. apple has been designing its own chip. this is really important. after years of complaint, from users, and the lengthening
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replacement cycle of our apple devices, we are using our devices longer, and performance has suffered. but apple is saying is that now for certain tasks, we will see load times that are twice as fast, even better performance. instead of some dramatic software upgrades that we may be more used to seeing, they are focused on more incremental updates. so that they can get this performance back on top. will focussaid they on software and less on hardware. anything interesting that could catch our eyes as we head into this conference? emily: i think these ar developer tools are really interesting. reporter who tech covers apple has talked about how apple is planning to release a headset, and 's headset as early as 2020. what we are seeing is building the foundation for a potential big ar that form. we are expecting ar kit, a toolkit for developers working
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on ar. we are expecting updates there. cuteve seen some fairly announcements of far. nothing too dramatic. they do have a new tool. it is called -- it is basically a new file format for a are programs which will make it easy to drop ritual objects into virtual environments. you so much. thank emily chang. you can catch her live commentary and analysis of the conference on tliv on the bloomberg. coming up, president trump doubling down on his hard-line immigration message, turning his attention this time to agricultural exports. this is bloomberg.♪
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mark: i'm mark crumpton with first word news. groupafter graduation, a of survivors from the february shooting at florida's marjorie stoneman glut -- douglas high school has announced a multistate bus tour to get young people educated, registered, and
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motivated to head to the polls. >> real change is brought from voting. often, voting isn't shrugged off as nothing in our country. people don't do it. they don't educate themselves. so often, people will vote for a letter in front of the name we are encouraging people around the country to educate themselves on their vote. and turnedthere voting into more of an actress -- active patriotism than a chore. beginthe best tour will june 15 in chicago where they florida students will join the peace march led by students from saint sabina academy. the united nations nuclear watchdog says it is ready to restart inspections in north korea within weeks. the international atomic energy it made its announcement precedes next week's historic summit that we present a kim jong-un in singapore. expected to focus on improved relationships between washington and pyongyang and the
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denuclearization of the korean peninsula. inspectors have not been allowed in north korea since they were expelled in 2009. in i, the new government s confidence votes in both houses of parliament this week. the prime minister should win approval for his 18 member cabinet since the populous five-star movement and leak parties hold a majority in both houses. but there is limited -- their slim majority in the senate could make the report risky. saudi arabia has issued the first driver that -- driver's licenses to 10 women as it prepares to live to the world's only ban on females driving. the females -- the women took a brief driving test before getting their license because were already licensed in other countries. as four saudi women's rights activists had campaigned for the r drive remain under arrest facing possible trial. global news, 24 hours a day, on air and at tic toc on twitter, powered by more than 2700
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journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. ♪ shery: live from bloomberg world headquarters in york, and shery ahn. live in toronto, i'm amanda lang. welcome to "bloomberg markets." we are joined by our bloomberg audiences. shery: here are the top stories from around the world. the united states isolated at the g7. president trump heads for a america'lies. and bloomberg exclusive, we hear a this week. canada' facebook fights back. the social media company is beating a report made by the new
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york times about how it shares data with filmmakers. -- phone makers. let's kick things off with a check of the major averages. we are seeing u.s. stocks in a high we have not seen since mid-march. the dow is up 8/10 of 1%. by s&p is b led discretionary. despite the rising trade tensions are we have broad tech games, microsoft agreed to buy github for more than $7 billion. not to mention, we have the apple worldwide developers conference in san jose, california kicking up today. you can see apple, the stock at record highs. although, it is worth mentioning that apple has been criticized for the addictive nature of its devices lately. the company is planning to unveil software to help cure people of their iphone habit. this would be called digital health. if you take a look at this chart, you can sit -- you can see apple's iphone growth year
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on year, this showing you their ongoing reliance on the iphone to generate revenue. tim cook finished talking to detect about the progress made in the app store saying that in app store has 500 million w visitors. amanda: that is part of the reason we are seeing renewed enthusiasm for tech as tech in general tracks back toward record territory. take a look inside the bloomberg and you can see this is the implied volatility. this is the volatility spread on the qs. you can see as it sinks, this is the risk on trade coming back. somewhere else that is showing up despite the talk about trade between canada and the u.s., canada seen as a loser of increased tariffs and no deal on nafta and we are seeing the canadian strengthening against the u.s. dollar. not necessarily the fundamenta in canada. what you're looking at risk on. the u.s. dollar is in favor when people are feeling risky. they are feeling more comfortable today.
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you can see they are willing to gamble on other currencies. seeming unfazed by the threats of retaliation coming today from its global trade partners. president trump doubling down on his hard-line message this morning. he is taking aim at barriers against u.s. agricultural exports on twitter. this is what he wrote. farmers have not been doing well for 15 years. mexico, canada, china, and others have treated them unfairly. by the time i finish trade talks, that will change. big trade barriers against u.s. farmers and other businesses will finally be broken. masstrado longer. the president also turned his attention to soybeans in particular tweeting, china already charges of tax of 16% on soybeans. canada has all sorts of trade barriers on our agricultural products, not acceptable. soybean prices are down for the day. bloomberg's just when growth joins us more for more on autolock. agriculture would be one of the issues that would be hammered out a nafta. proionsntries have
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in their agricultural industry. i was interested to see come as i am sure you work among the farmers in america are not happy by this talk. where is the leading? - pick yourone of business. one of the things that was left out of the original nafta was canada's system. management system, which we know is a system of restrictions" is an tariffs that protect canadian producers. it is politically unanimous in canada. all three major party support it. any attempt to touch it is political lightning rod. trump wants to blow the whole thing up. that is the nafta context on all of this. farming groups in the u.s. are generally pro-nafta. they do not want trump to kill the deal. we do not know where this is going. by thedge -- the effort u.s. to see change to below par canada's system has been put to the side. justin trudeau signaling in a tv
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interview on meet the press that flexibility. maybe there is something there. more broadly has been one of the few specific issues of nafta, which is a really arcane thing, at times, but trump latches onto. he has zeroed in on that for a while. shery: president trump insisting on the five-year sunset clause. take a listen to what the prime minister of canada said earlier. >> the unitedtes wants a sunset clause in nafta, which makes no sense. you don't sign a trade deal that automatically expires every five years. there was no way canada would agree to this. and even mexico. josh: absolutely. they think this would add too much uncertainty. they are getting a taste of that now with these talks adding uncertainty to the whole process. it is a bit weird. we have a six year exit -- six-month exit clause a nafta. any time people can quit on six
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months notice. trump has been given the notice, although he threatens to often. everyone is drawing a line on the sand on the five-year expiration. even if they didn't have that, trump after five years, or the u.s. president could if you wanted to. this is one of those red line issues. even if they got that, if they got agriculture, there are a bunch of other things. nafta asked to have lost the urgency we have seen in the last few weeks. we are just quickly, hearing talk about bilaterals. canada should negotiate only with the u.s.. mexico should negotiate only with the u.s.. do we think that will be the next leg that it will go to bilateral? that trumpe seen believes that bilateral deals are better than trilateral ones. at this point, this is a bilateral discussion. if things collapse, maybe we go down that route. and it has a bilateral treaty for it -- free trade agreement with the u.s. that was a nafta predecessor.
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in his to be updated if they ever wanted to use it. amanda: josh when growth, thank you so much. despite the crowd of the u.s. trade at this weekend's g7, the meeting amongst leaders were said to be "constructive." up next, an exclusive interview with bank of canada governor, stephen poloz. this is bloomberg. ♪
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♪ shery: this is "bloomberg markets." i'm shery ahn in new york. amanda: in toronto, i'm amanda lang. in our exclusive conversation with stephen poloz, the meetings is to form a consensus among member nations. last week's meeting was more of a discordant than cooperation.
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when i spoke with the governor, that was the subject of conversation. here is stephen poloz in an exclusive interview. the question was all the influence the town was having on the meetings. stephen: there's no question over thee is a cloud conversation, given what has happened this week. very agenda oned which can be constructed. i would say the town was constructive. was theat extent described at the distraction of discussions around trade and tariffs taking away from some of tiermeteor issues -- mea issues he wanted to talk about? stephen: we talked about tray that was separate from all the other things. that was separate from all the other things. now we will move on and talk about other things. we know it is there, an issue for everybody. but it is an issue that really needs to be discussed in full
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detail at the leader summit. amanda: glenn central bankers come together, i know one of the things he were discussing is rate policies and uncertain times. obviously one of the uncertainties of trade issues, but there are many others in the world today. what does that mean exactly in a practical way? what are the uncertainties you are grappling with as a group? stephen: there is a whole range of uncertainties. mosthings that are topical, what is potential output, how much capacity do we have in our economies? how far can they grow before inflation actually becomes -- reasserts itself in a normal way? how high is our star? or how low? what is our star? those two assumptions alone, and their intersection, gives you all kind of scope for uncertainty and ranges around things you are looking at. i think we focused a lot on
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those things. the inputs we need to be more depend -- definitive about those things. comment, ifing there are any nonlinear things in your model, it means but even though you think of uncertainty as symmetric, it gives rise to a symmetric risk decision-making. intuition would become a downside risk feels the worst right now, given what we have been through. even risks are symmetric. you care more about the downside risk. that is because of the nonlinear xina model. amanda: has that informed policy? stephen: it means that since we don't know exactly where we are, it is a risk management decision. as we have discussed for canada, it means that you believe the skew is a positive one. that means that there is probably more room to grow before inflation pressures are actually evident. but you don't know that for sure. it is a risk management
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decision, not a definitive decision. it shades your judgment in that direction. amanda: are we changing, recalibrating, the amount of inflation we are willing to tolerate, even in the models than we did a few years ago? stephen: no, i don't think so. certainly we are not. over that is about two-year horizon, where will inflation be? our forecast says it will be as close as anything to 2%. our forecast also shows it could go 2.5%, or something like that between now and then. we say, that is ok because we believe it to be a transitory phenomenon. that we a taller thing can expand -- explain. not in a targeting sense. we would not target above 2%. but again, since it is two years from now, you don't rew what it will be. it is a question of what are the upside and downside risks, and
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if they are a symmetric i mentioned a moment ago. then you say, i can wait a little bit longer before i will see those inflation pressures showing up. relative to my model. amanda: it feels as though there is a tension between central banks and finance ministers, treasury, in terms of continuously stimulating growth and a willingness to take on debt to do that. and banks are now looking to normalize. how does that play out in your view? stephen: usually fiscal policy is something the central bank takes into account. it is not a big game where it is all coordinated. governments have a range of objectives that they are pursuing. once they lay out their fiscal plan, the bank can take that into account in relative to potential, this is where we will be, therefore this is what the rate path will look like. i have thought about this as a mixed question, rather than what the total demand is question for
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we all know that for the last number of years, interest rates have been extraordinarily low. period,that time fiscal policy had been more stimulative come at they could have been hired to what would be the outcome? but more public sector debt. either way, there would have been debt. it is not black and white. which is worse? it is about knowing and understanding the trade-offs and then judging and how we use it to bring those things into a common environment. of debtged period accumulation gives rise to a higher probability of a financial crisis, or what have you. which puts the economy at risk. we take those things and count them that way. amanda: that was stephen poloz. i also spoke with the secretary-general at the g7 meeting. he says president trump's
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tariffs may hurt the global recovery. >> it is a big concern. of course, we regret the fact thatthere were tariffs were applied starting in the first of june two in number of countries which are either negotiating or already have very old trade agreements withhe united states. it is also, in a moment, where there is a recovery in the world. we are growing close to 4%, which was increasing speed before the crisis. course, the potential of slowing down the recovery because it infringes on the level of confidence. it creates uncertainty. mayefore, some investments be deferred, some actual trade may be detoured.
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it is not good news. amanda: that was my exclusive conversation with angel gurria. --t was at the g7 media meeting. everybody i spoke to ahead of that final note from the chairman, it was not the communique which requires consensus, it was a no from the everyone was universally opposed to the tariffs. as we saw in that final note, they were opposed in the rooms. it was g six plus one. shery: pretty interesting how the united states was singled out in the community -- communicate. not surprising given bloomberg economics is projecting global trade war could wipe $480 billion of the economy by 2020. we could see president trump getting his shrinking of the u.s. trade deficit, but at what cost? the bloomberg business flash. a look at the biggest business
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stories in the news right now. health will look into a video seen by bloomberg news where a ceo reportedly made disturbing comments about a female employee comes after the former president george h.w. bush apologized last week for scolding his ex-wife. they are facing a takeover cited poorich management for the health and technology companies on their performance. to pay 585greed million dollars to settle u.s. and french bribery investigations. payments to with officials at libyan fs -- investment authorities. a judge has to approve the settlement. japan's finance minister has as a form ofay cut response ability for junior officials who reportedly altered documents in a land deal. his highest rank official to be
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punished over the scandal. i sincerely apologize for this affair. i wilfilling my duty as the finance minister by devoting efforts to create new procedures so that documents will never be altered or mishandled. resigning is not on my mind. is your business flash update. coming up, facebook shares are falling as the company disputes a report in a loud phone makers to have deep access to users data. we take a look at those social networks data issues next. this is bloomberg. ♪
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♪ this is "bloomberg markets." i'm amanda lang in toronto. shery: i'm shery ahn in new york. shares of facebook are trading lower in the disputes on how it shares data with device makers from apple and amazon to samsung. joining us from san francisco with the latest is sarah frier, bloomberg tech recorded --
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reporter. this report came out over the weekend. there was an upro what is facebook saying no? -- now? sarah: facebook is saying, this is not what it looks like. the new york times report is potentially devastating. they are alleging facebook, even though he told us in 2014 that it no longer shares a friend data with anyone who is a theseparty, they did have relationships with device makers that allowed them to see the very data that zuckerberg said was no longer a problem. if this is the case, then potentially, zuckerberg misled congress and his testimony. which would be very serious. facebook is saying these device partnerships are nothing like those developer partnerships. because with these device partnerships, you need to have the data flowing through the advice to give people a facebook experience. that is what these were designed to do. they were designed to give
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people a facebook like experience on whatever they were using to whether that was their phone or a gaming console. it was a facebook ranted environment. -- branded environment. amanda: it seems as of facebook defense is this was designed to serve the end user. so far, a lot of consumers -- customers seem willing to go along with that rationale. is is this another example where that might satisfy their base? sarah: the problem right now is oft facebook is in the midst a crisis over public trust. when they say, this is really what we are using it for, the reflected it is not accurate. it is like we are in this romantic comedy where the guy is caught in the act with somebody else and they are like, this is not what it looks like. do we really believe that guy? -- facebookoment has apologized for these things over and over.
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they have explained them away. they have tried to get people to understand how their businesses is operating. is a very nuanced issues. is on the defensive at the moment. lawmakers have had countless statements today that are continuing to slam facebook. this is not going away for them. amanda: bloombergs sarah frier. thank you for that. if you missed out on any of the charts we showed you today, gtv go is the bloomberg library. one of those is the iphone chart. we have the apple worldwide developers conference in san jose kicking off today. this is bloomberg. ♪ ay. this is bloomberg. ♪
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>> it is 2:00 p.m. in new york, 11:00 in san francisco, and 7:00 in hong kong. scarlet: i'm scarlet fu. julia: i'm julia chatterly. welcome to "bloomberg markets." ♪
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scarlet: we are at bloomberg world headquarters over the next hour. here are the top stories. apple's ambition, the team takes the stage to layout the softer strategy for the next year. we will bring you highlights as a-shares climb to new highs. $2 billionry paying to distribute the pga tour globally, details on the deal straight from the discovery ceo. donald trump versus the world, the president faces a showdown at the g7 summit this week as the eu and canada one of retaliation. u.s. markets closing in two hours. julie hyman is tracking the moves. apple at a record high. >> nasdaq gaining ground, as the dow has been losing a little bit of ground from highs of the session. technology propelling part of
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the gains we are looking at today, as we continue momentum from the jobs report on friday. the nasdaq and the nasdaq 100 both potentially poised to close at a record today. they have outpaced gains in s&p and the dow. here is a look at the nasdaq year to date. the number we want to watch today at the close, 75.88, that was the prior closing record, right now above that level. not passed the intraday level, but it could be the next level to watch. the year-to- chart, you see the zig zag, the nasdaq re-attaining a record in march, pdid not get there. in the session today, best performers in the nasdaq 100 are some of the chinese companies listed in the u.s. alibaba rising after the strength we saw overnight. and it was up about 1.66%.
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many of the companies that do business or are based in hong kong and china rising today. and finally, when i talk about the tech stocks outpacing what we have seen from the broader market, this is a visual of that. merrill lynch fang index in white, new york fang index in purple, and s&p all the way down here. both are sort of the classic fangs expanded, with other big tech heavyweights as well, many trading at records today, including apple, microsoft. records helping to propel the industries. version isill lynch up 35% year to date. julia: thank you. going to first word news with mark crumpton. mark: the u.s. supreme court ruled for a colorado baker who would not make a cake for a same-sex couple. the justices said the bigger did
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not -- baker did not discriminate when he refused to make the cake, but it was a narrow ruling that did not address the broader free religious right issues that prompted the justices take up the case. president trump scheduled to meet with the north korean leader kim jong and in singapore next week. the two countries plan to discuss denuclearization and regulations between washington and pyongyang. james klapper tells bloomberg, that the focus should start with the basics. >> rather than thiabout me grand bargain on denuclearization, which i do not think will happen, it would be useful --
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when i have done nothing wrong. rudy giuliani said if the president did part of himself -- didn't pardon himself, it would lead to impeachment. the united nations nucle watchdog calling on iran to cooperate with inspections. agency said iran was below the maximum level of uranium did the deal allows it to enrich. today, the director of the agency said "timely cooperation by iran would enhanceonfidence that is abiding by the landmark 2015 accord." president trump announced last week that the u.s. was withdrawing from the agreement. global news, 24 hours a day on air and on tictoc, powered by over 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. julia: thank you.
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shares of apple hitting an all-time high today, as the worldwide developers conference takes place in california. the company has laid out a future software strategy and hardware ambitions. for the latest, we are going to ouremily chang in san francisco. great to have you. just getting overexcited about the headlines. i am looking at group face time and limiting app use. talk me through the highlights so far. emily: investors are excited, but nothing too surprising, all of it in line with what bloomberg has reported, perhaps although the most significant so far is the new features apple has introduced to help monitor our tech addiction, or moderate tech addiction, if you will. a screen time monitoring feature, which will tell you how much time you're spending on your apps, it will cause notifications -- pause notifications. apple has been under fire from
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critics who say that the technology is too addictive and apple is responsible. you could also turn off your phone, but that might be too much to expect. but the is, i thought same time icing new features, like the one you are excited about, the me-moji, that allows you to create a personalized emoji that looks like you. they just demonstrated group face time, which is a technological feat. very difficult to do. all of those features will only make our phones more addictive, so at least for apple, investors liking what they are hearing. scarlet: so far, so good. apple was pushed by investors to do more when it comes to fighting the smartphone addiction. compare and contrast how apple is resolving this, or addressing this, to say how microsoft and apple that are doing this. addressing smartphone addiction, some people say, is less of a
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threat to apple than to the software companies. emily: interesting you mentioned out for that, because google did the same thing a few weeks ago at their own developers conference. they announced the monitoring tools, the notification, you know, the keeping, if you will -- atgate keeping, if you will. i also talked about the ceo of microsoft about facebook, and he talked about how trust is very important for them. the bottom line, it will come down to the users to make these decisions. at the same time the companies are announci new features, they are making their products better and better. apple announced better features around siri, a new shortcut that allows siri to can mitigate with any app. app. communite with any that is something users have been wanting. tools. new ar developer one thing tim cook has talked
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about is he thinks augmented reality is a huge idea, perhaps as big as a smartphones. what we are looking at is apple lane the foundation for what -- layingndation for a what coul platform. and we have reported on a as early as 20scarlet: good stu. thank you so much for catching us up on everything that apple is doing. catch commentary and analysis of the worldwide developers chi-go.ce on coming up, donald trump versus world. th president heading for a slowdown with allies. what can we expect and what it could mean for the global economy? this is bloomberg. ♪
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julia: this is "bloomberg markets." scarlet: it will be president trump versus allies this weekend and a fight over trade. the group of seven will be in quebec, and the european union and canada are threatening to retaliate and less the u.s. services course on tariffs. we are with our chief washington correspondent, kevin cirilli. this really looks like a group if the indication from the initial meetings are anything to go by. finance ministers ended their meetings united in opposition to the white house in a formal statement rebuking the u.s., how unusual kevin: it is unusual. the finance minister from france said it felt more like a d6 plus
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meeting, just because of how odds it is feeling against washington. some threatening to with the draw from the deals and they had made preliminary with united states on the issue of trade. meanwhile, the europeans are thinking of formulating and cohesive unit to respond to what the president has decided to do with proposing to increase tariffs on steel and aluminum imports. that has been objected to by germany and the u.k. and canada, i want to pull up a tweet on what president trump said about nafta, because this is very interesting. "farmers have not been doing well for 15 years. mexico, canada and others have treated them unfairly. by the time i finish trade talks, that will change. they trade barriers will finally be broken, nafta trade deficits
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no longer." the president has faced pushback, not just around the world, but from those very farmers he is tweeting about. many of them are republicans, they are in flyover country as it is called, who helped elect him and are concerned about what he is doing, because of the chinese response with soybeans. julia: is the president listening? to what extent, as you point out, the critical vote are based in the farming state and if we see retaliation, that ultimately will hurt these people. is the president phased? fourth is this all part of the rhetoric, part of the rgaining process going on and nobody is really paying that much attention to the tweets? kevin: great point. most analysts are not paying attention except when he tweets about north korea, but i talked to a source about the administration, and what that
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source said was, take a look at the tweets. the president talking about the farmers, many of whom have sent letters to wilbur ross. and hillary kudlow, a senior economic adviser, to reconsider what they are doing on the issue of agriculture. but on the second side of that, we should also note the president campaigned about ripping up nafta, and negotiating a bilateral trade deal. the ministers and says to those republicans, do not blame president trump, blame china, blame mexico, blame canada. take a listen to what lyric of those said. -- larry kudlow said. >> do not blame trump. blame europe, blame china, blame nafta. kevin: trying to be on the offense, kudlow. and when you talk to folks at the white house, they say they are walking things in real-time. take a step back and be patient
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as these things continue to develop. scarlet: i want to ask again about the president arriving at the summit. we were saying how fascinating it would be to be at the event, it would be so interesting to read body language there. there will be accompanying the president and when will they arrive? steve mnuchin seems to be somebody that our allies see as a partner in promoting free trade, yet there was a report over the weekend that indicated he is under pressure and feeling the heat from both sides within the administration from the hardliners. kevin: i spoke with sources close to peter navarro, more like steve bannon from the public worldview, and they say he is at odds with the steve mnuchin, who has abdicated for more free trade, and along with whoow who has advocated, would describe himself as a free trader. you have that tensioin the president's administration, but he likes the attention, in the
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sense -- tension, in the sense that he likes that type of movement. he is expected to arri second half of this week, before he goes to singapore ahead of the summit with kim jong-un. and he will likely be surrounded by his senior team of economic leaders, people like wilbur ross, as well as peter navarro. the treasury secretary still playing the key central role, the key point person in terms of the direct conversations, especially with the chinese, chinese would anticipate the the highest ranking official be the point person on this come as my sources tell me, and that person is secretary steven mnuchin. julia: you get a sense that not just china, but the nafta countries, who to deal with and who is working toward some formal deal. i want to talk about another tweet today, talking about the prospect of the president being able to pardon himself, although
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he has done nothing wrong?at if laughing.stop what do we make of this? [laughter] kevin: t administration is going on offense by raising the issue of pardons. that is what every conservative folk -- person is doing. they feel like this has gone on long enough and the trump movement, the voters are really behind the president in this thinking. democratt, and there is a group of independent voters, many republican as well, who are at odds over this. over the weekend it was reported a memo that which the legal team of the president advised him he would be able to pardon anybody, because he has final jurisdiction over all the investigations, including robert mueller's. that case could go all the way to the spain court. i do not want to get too far ahead of ourselves, because as
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he rightfully mentioned, we do not know when the investigation will wrap up, nor do we know what he will find it what it will mean for the midterms, and for our audience that is the question, because should immobilize democrats or republicans to get to the polls, the policy implications come november, and what kind of framework could get done next year. julia: and a comment from rudy giuliani saying, the president probably does have the legal power to pardon himself, but it would probably lead to immediate impeachment. i am shaking my head. kevin cirilli. thank you. [laughter] coming up, we will hear from the ceo of discovery on a new partnership and why eh thanks -- he believes it is a hole in one. this is bloomberg. ♪ ♪
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scarlet: this is "bloomberg markets."
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julia: discovery is betting $2 billion on the pga tour, aiming to become a global force in live sports. the deal includes tv and internet rights, and the development of a netflix service. we will be speaking with jay monahan and david zaslav, ceo of discovery. >> to start with, this really fits perfectly with our overall vision for discovery. company. are a global even with eurosport, the olympics, and even though we're the largest international media company with all of our channels, we are the only one that owns all of its content globally. we really believe content is going to be moving onto devices and phones, and people who love content will be consuming it. our journey is, how do we own content that people want, and want to watch, and most important lehigh do we own more
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content that people love so much that they will pay for it before they pay for dinner. the pga tour, we do not think that there is a more compelling sp franchise, global sports franchise in the world. 50% of the pga tour players are from international venues. we are in business in every one of those countries. it is a passionate group of people and together we see this vision of offering a global pga tour golf ecosystem. not just 43 weeks a year of contents, and all of the tour and players, it is an echo system for golf. >> you acquired the olympics rights, the bundesliga, and beyond. so it is win-win in terms of global reach, but i am wondering what it means about the increasing value of sports rights. when the deals with nbc and all of those come up again in two
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years, will the prices be pushed higher? david? david: we think the long-term is the game. the idea is we own together now as a partnership globally the pga tour and we will be building a golf echo sysm. the fact is through 2030 is a huge deal, but we also see this as a partnership we will grow together for the long time, because by the end of 2030 we will have the credit cards of millions of people, we will know what they love, and we will have come together as a partnership to build that and own it. for us, the long-term nature of golf, in this case the pgaour, was critical. vonnie: what does it mean for other partners, will you be charging them more, will there be more leverage now? jay: talking about the international markets, we will address every single market as the deals come up, but the landscape is changed by virtue of this partnership.
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when you create this video streaming service, when you bring discovery's knowledge in every single market, not just in sports, but with all of their distribution and in market relationships we will be looking for the partners that give us the biggest opportunity to grow our fan base, and accelerate growth of the game. somee: and you brought in other players, who have done it for the nba. jay: and from directv. when we this together, we can do traditional things. we could launch a golf channel in every country of the world. david: we can decide when to offer content free to air, when we want to offer to cable players, but the idea is to aggregate all of the content and offer it on every device, so that when some but he leaves the house they could be watching, in the office they could be watching. it is the idea of creating content around gulf.
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vonnie: you will have to differentiate yourselves. how will you do it? with the videos you provide and who will you hire? do you need tir woods to retire and become a commentator? david:ink the differentiator will be the pga tour brand. the fact half of the players are from around the world. we saw this with the olympics. they are the big stars, but the local players. in norway, we had a 90% share of viewership, because we promoted local players. one thing that we can do with our channels is promote all of the great talent that jay has o. scarlet: that was david zaslav and jay monahan, commissioner of the pga tour. time for the bloomberg business flash, a snapshot of the biggest stories. the koch brothers going head-to-head against president trump over tariffs. local networks backed by the brothers planning to launch a
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multimillion dollar campaign to promote free trade and derail moves to impose tariffs. the age have a net worth of about $47 billion. they did not support the trump campaign, but did chris's efforts to cut taxes. and qualcomm is asking the european union's general court to reduce a $1.2 billion antitrust fine. the penalty was imposed overpayments made to apple to make sure that only qualcomm chips were used in iphones and ipads. they argue that it did not hurt competition. ♪ and that is your business flash update. from new york, this is bloomberg. ♪
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scarlet: from new york, this is "bloomberg markets." i'm abigail doolittle. abigail: on the
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session, you can see the dollar barely moving and some of the major pairs are flat. take a look at the australian dollar against the u.s. dollar, up 1% and hitting a six-week high, given by australia's retail sales figure that came out and it doubled. the strengthened aussie helping another pair, the new zealand dollar against the u.s. dollar, but more upside ahead. take a look at the chart in the bloomberg of the atralian dollar against the u.s. dollar, you can take a look at the chart using the gtv function. there was a steep decline in the dollar, very similar to what happened with oil. also similar to what happened with oil, this upward moving range. we have the australian dollar going back today. there is an area of bottoming that appears it could take the australian dollar higher. in fact, this range sho that we could see it go to $.80 per u.s. dollar, maybe $.83 per u.s.
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dollar, so pretty interesting. the dollar weakness is ahead. i want to bring in joe perry, a consultant for forexanalytix. treated futures -- traded futures contracts for 17 years, so a perfect that the way in. what do you think? joe: i see that there is room for a pullback here. you see the long channel that started in february, actually here we have a triangle formation, it is broken out here in the middle of april, going up to these highs. actually appear there is resistance -- up here there is resistance. you can see 2017, here. this is very bearish. we went up, we tested the high right here and we pulled back down. then here we could not move about it. we traded to this point here on
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thursday. here we have the retail sales had the sorry, we employment numbers and we could not get higher. today looking like it is pulling back. it will be a very important today to see where we close. is interesting you are saying that, giving all of those details. this is looking like a move down to 93 or so, so it will be interesting to see if it makes it back down to 50. but tie it into the australian dollar futures, really bring in your expertise, this is a three-month to form of chart. front month contract. joe: here we have broken lower out of this channel, forming another channel right here. we started to extend higher. last night on the retail sales number, it actually got it right here. we did not break out on that number, which i found interesting. it took another hour to bring to the 76 level, takeout stocks,
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trade to the top of the longer-term channel, and a pullback to this blue channel. from here, if the dollar does pull back and go lower, i expect this to raise higher and go toward 77. here,el, right around which could act is resistance. abigail: relative to the longer-term chart i showed, which suggestcould see the australian reach $.80 or so, which is out of the timeframe you are thinking about, but that would mean this channel would make an upward move. joe:would. what you could do is enter right now and put a stock below this blue one, or wait until it breaks out, buy on the breakout and then go look -- then go below the white channel. 7650 forlooking around a possible stop. thank you for joining us.
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back to you. julia: let's get you to your first word news update with mark crumpton. mark: in guatemala, the death toll from a volcano now stanat o rise. more than 3200 people have been evacuated from their homes. the disaster management agency of the country says many people remain missing. a volcano west of guatemala city erupted on sunday. angela merkel said today that she condemns a tweet from iran's top leader,s a cerous tumor that needs to be removed." speaking in berlin alongside the israeli prime minister benjamin netanyahu, she said israel's security was a top priority for germany. benjamin netanyahu called the extraordinary."
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calling for the states to suspend of venezuela and stepping up to restore constitutional order. ompeo made the. position clear today at a meeting of the general assembly in washington of the oas. >> there is no greater talent today then the dismantling of democracy and the heartbreaking military and disaster in venezuela. while the u.s. welcomes the release of the imprisoned hold to family, our policy remains unchanged. mark: secretary pompeo again condemned the disputed elections in venezuela,'s foreign minister responded by accusing the u.s. of a legal interference in its internal affairs, and violating the oas charter by imposing sanctions. political reports that former national economic council director gary cohn withheld jobs numbers from president trump
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until close to the public release. politico says he did not share the numbers because he was concerned the president might comment on them before they were made public. president trump boiled the markets last week by tweeting that the numbers were going to be favorable. larry kudlow follows protocol used with other presidents and gives him the figures a day early. global news, 24 hours a day on air antoc, powered by over 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. thank you. the world cup kicks off in less than two weeks in russia, and soccer fans are not the only ones watching. our next guest has taken a deep dive into the tournament. he joins us with his report on how indicators, including inflation and gdp could be playing out on the pitch.
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soccer, we are in new york. julia: football. [laughter] scarlet: what if they were competing in a different tournament -- it depends on what indicators you use. >> we one a macro health check. we look at the big indicators used for comparing the major economies, will look at where the risks are. this time around, instead of looking at the risks, what if we flip it and look at countries where we do not have so many risks. so it is like playing the tournament, and whoever wins it depends on the indicators, but at least you can look at them as a way of seeing which country is in good economic health. julia: you look at growth, inflation, the budget deficit, government debt, and demographic openness, which could be important in light of trade headlines and tensions we are seeing. have you ranked them in a particular order to get the kind of shifts and progressions
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through the effective tournament we are talking about? >> it is interesting, because some countries do quite well with a lot of these. things about the groups in the world cup. germany, quite tough footballing group. mexico, other countries doing quite well. it does not matter the indicators, they are doing well against each other. but it does not matter too much. the one indicator that matters when you are playing an economic world cup, you take something like demographics, working age population growth, you have an enormous spread between india and japan, where as with inflation, you do not get the same deviations. maybe gold with economics. scarlet: any countries that score well across all the different indicators? >> some of them do. when we did this it was sweden, iceland, panama. economically doing well at the indicators we are looking at. when you do this kind of
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analysis, you have to take data that you can get from all of these countries. get a lott -- can't of great country from senegal or others. have household data from like costa rica, for example. julia: there are countries that are very relevant that did not qualify. like the united states. sorry, i should not say that. for turkey. [laughter] have you had a look at where these guys would place if we could include them. >> exactly, we were discussing this as a team and you realize pretty quickly that the u.s. did not qualify. and some of the heavyweights, they did not qualify, china, chile, turkey. which is quite unfortunate. so at the end of the report, we did compare them all against each other. unsurprisingly the two of them better standing out are
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argentina and turkey. so showing up quite clearly in the last month, as they have been at risk, but -- while we have not seen any market tears from sweden. scarlet: is it going to be a iste elephant this time, or is a different kind of animal? >> it is how you provide infrastructure. you saw in brazil, a lot of the stadiums were redundant. they were building large football stadiums in the cities that did not need one. the good thing for russia, st. petersburg and moscow already have those stadiums in place, so not spending so much money on new infrastructure. nonetheless, we should get a little bit of a pickup to the econy om the influx of tourists. scarlet: what about the long-term impact? >> historically, there has not been. that is a challenge. you make it likenal
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euphoria, if your country does well, you get in uplift because you feel connected to the tournament, those things can help the economy in the short term and maybe start a spiral. it happened in the u.k. a little bit with the olympics. also, great britain doing well with this of upper this in sentiment. may be that could happen with is thereut the chance that it could not happen. julia: and the brackets, the semifinals, korea, germany, and in the final denmark. doing pretty well on a football basis, in ter economics and football. massage these figures in terms of relative importance in order to make the u.k. went? -- win? >> you can do it. julia: i love that you have tried appeared [laughter] -- try. [laughter] >> it would help to win
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something. we could cheat the data. the economic data not doing quite well, so you really have to try, but there is a way to mix of the indicators to make it work. it comes with a bracket you can play with an excel spreadsheet, we sent out and then got back the results. it is funny how everybody managed to spend enough time to make us about their country won and then send it back to me,. people enjoy the interactive nature of the research. scarlet: major bracket work for you. julia: there you go. scarlet: thank you so much. well done. ok, be sure to check out gtv , you can find all the charts that we feature here. click on them to catch up on key analysis, save them and use them for yourself, and here is a good indication of a facebook user activity stalling after a report about partnerships with device makers, different from third. -- third party app developers.
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users stalling for quite a while. from new york, this is bloomberg. ♪
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scarlet: this is "bloomberg markets." julia: time for the stock of the hour. also groups urging today as the only analyst with a buy rating turning more positive about its prospects. columnist dave wilson joining us with more coming even more optimistic about the prospects. analyst is from keeping capital markets. when you have some version of a buy rating on a stock, the way to express optimism is where you expect the stock to go in the next 12 months. he raised his price target to
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$32 from $25, well above where they are trading now. scarlet: it is a stock not well covered, their only 8 analyst ratings, this one you are telling us about, five holds and two cells. -- sells. what are they bullish on? julia: it is way off, from keeping. they've: you think about -- dave: giving about what has been going on there, it has been all about fitness trackers and smart watches integrated into fossil. scarlet: with the smart watch on his wrist. julia: just useful. dave: and a lot more people buying them. bt the thing -- but the thing is though, fossil is getting into that area of the business and he figures that they could become the second biggest company in what you would call wearables,
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the category that includes the smart watches and the trackers. so that is the reason why he is optimistic, when everybody else is either saying hang on, same thing as saying sell, or an outright sell rating. julia: so this is what he believes in terms of the company. dave: the stock is killing in the last five years. it started to turn around. and we will see if there is more to come. julia: i love the space. scarlet: thank you so much. breaking news, live pics from the white house daily press briefing. sarah sanders hosting that of course. she made comments saying that the first meeting between esident trump m jong-un will occur on june 12, at 9:00 a.m. singapore time, not a copy of monday night in new york. you can watch that entire event by using the terminal function live go on the bloomberg. she also says president tru
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will not need a pardon, because the president has not done anything wrong. we locate -- we will keep you up-to-date on more headlines. this is bloomberg. ♪
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>> this is "bloomberg markets." scarlet:m scarlet fu. with julia chatterly. their are many ways to look at the issue of why women make less than men. a podcast focuses on the gender pay gap, called the paycheck, and the host rebecca greenfield kicked off with her mother's personal struggle. rebecca: when i saw what was given out, i was appalled when a junior colleague, who was lower ranked, with fewer responsibilities, was paid twice the stipend from the university as was i. and to make it worse, in some cases my hospital colleagues were paid more than five times my hospital stipend for the administrative work i performed,
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even though i had the most busy service in the hospital. scarlet: in the business of a quality, are ongoing conversation about diversity, i sat down with rebecca and asked how her own mother's battle influenced her views. rebecca: the state university of new york and at the hospital she worked at, she sued for pay discrimination. she did that when i was very young, 12 years old. i grew up in the 90's, and it was a time when i was told i could grow up to be whatever i wanted. it was the time of girl power, the spice girls were huge and the powder puff girls, and i internalized those messages and at the same time i had a really awesome powerful mother who was not only the female surgeon, but also like fighting what i thought was a crusade. that is what i thought when i was younger. and i think basically by the time she settled and i saw what it did to her and how it was, she called it her third job, and
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you know, she settled which is kind of a win in these situations. scarlet: one thing she said that she had a hard time grappling with, was she felt like her battle did not change anything, but you offer some perspective in your podcast. has anything changed? rebecca: i think the biggest thing that changed is happening now, the me too movement. we talk about sexual harassment a little bit in the show, but i think it is helping people realize the gender dynamics in the workplace and how they are, and how men and women in -- really heart women -- hurt women's careers. some of the women that we hear from our also sexually harassed, and suing for pay hand i hand and opens upes go people's eyes to the reality of the workplace. sadly, i do not know that much has changed, up until now.
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scarlet: what did you set out to do with the podcast? did it from run the me too movement? rebecca: i think what we wanted to do was everybody hears the number of 20%, women make 20% less than men, but we wanted to show the human side so we spoke with women, and myself, who experienced it personally, but we wanted people to know the history of why it happened. behindn some of the math it, so people could walk away learning something. i think if you learned one thing from the show, that is really getting our goal, because it might help solve this. scarlet: there is a common nation people give, including companies and women themselves, that women make choices about family, career, and the results in jobs that do not pay as well. it is individual choices rather than institutional framework imposed upon them, unpack those arguments. rebecca: listening to the show,
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you can kind of see how the forces are greater. the historical reason for why thes that women are choosing payless are because of sexism and ideas that pee about women, in how women were not allowed to do a lot of these jobs until the 1960's. there were laws. and they would end up in lower paying jobs and they are still the jobs we are doing. the reality of the way that we see men and women at work forces women into making these quote "choices."ices -- we expect women to dial back the hours at work for family. scarlet: has any company done anything about it? rebecca: we spoke to one company, virgin money, therted o 33%. the ceo claims, we are try to make it less of a taboo for men
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to take the lower paying jobs in customer service, for example. but she said even getting down the three percentage points was hard. scarlet: 33% is stilmassive. side inut on the public the united states? is there any kind of initiative at the state level that is bearing fruit? rebecca: the biggest thing happening in the u.s. on the public side would be a lot of cities, and some states, have started banning asking salary history questions when hiring new employees. so when women come to work at other companies, if they are underpaid at a previous job, and you have to tell your salary you will be underpaid at your next job, so a lot of those places or employers are not liking this and they are getting pushed back, so it is becoming a nationwide experiment. scarlet: that was my conversation with rebecca greenfield. you can download the podcast
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from itunes or wherever you get your podcasts. i thought it was interesting the u.k. shedding light on the gender gap. it is a nationwide experiment that forces big companies to expose with the pay gap is, but it does not enforce them to do anything. julia: the hope is shaming them forces action. australia and germany are doing it. scarlet: let the outrage takeover. julia: they said of nothing gets done, and it could take a century to get anything done on the cap -- gap. scarlet: a century, that is frightening. apple shares off of their highs as the annual conference wra up in san jose. we will go there live, next. ♪
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>> is 3:00 p.m. in new york. scarlet: welcome to "bloomberg markets." ♪
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julia: we're live in bloomberg world headquarters in new york over the next hour. here are the top stories we are covering on the bloomberg and around the world. stocks around the world continue to rise on hopes that the economy is powering ahead despite uncertainty over global trade. apple ambition. ceo tim cook taking the stage to layout the company software strategy for the next year. we will bring you all the highlights. site site for coding
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more than 7 billion dollars in stocks. we will hear from the microsoft ceo.
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there is analysts commentary on that. the price target being raised to $2000 at suntrust. best is yetsays the to come for that company. with all of these records, it is no surprise -- take a look at the bloomberg and we have seen it outpacing the s&p in terms of momentum this year and the number of records is -- records it has set. the nasdaq pushing to the record level well below its record high. it speaks to the impressive and persistent momentum in the tech sector.e he
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i want to mention an area where we are seeing momentum go in the opposite direction, with oil prices. now down of out 10% from the highs just on may 21. this has to do with chatter over opec and other nations like maybe slowing back on production cuts and some of the information we are getting about the meeting over the weekend continues to support that speculation. --nce down once again again below $65 per barrel. >> thank you. first word news with mark crumpton. mark: thank you. group of survivors from the shooting at florida -- florida's high schannounced a multistate bus tour to get young people educated, registered, and motivated to head to the polls. >> real changes brought from
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voting. too often, voting is shrugged off as nothing in our country. people do not do it or educate themselves. the letter in front of the name of the candidate. we encourage people in the country to educate themselves on their vote and get out there and turn voting into more of an active patriotism than it short. act of patriotism than a chore. mark: residents were wrongly told to stay in their apartments building in june of 2017 according to a report by fire safety expert. the residents were not told to evacuate for more than one hour after the fire began. the report was published by an ,ncrease investigating causes and it killed 72 people.
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officers are returning to home inside -- assignment three month after they stepped in to to innervate agent attack on a russian spiraling -- spy on his daughter. they have spent about $10 million dealing with the aftermath of the march 4 attack of surrogate and his daughter, both of whom have recovered. former president george h.w. bush is out of the hospital and his spokespeon of armed on 20 -- on twitter that he is deeply appreciative for the terrific care and the many good witches he received. he had been in a houston hospital since last weekend being treated for low bread -- low blood pressu global news 24 hours a day on air and on tick tock on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg.
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julia: apple shares are gaining off -- off session highs. the company holds its annual developers conference. a new measuring app make it more difficult for data companies to attract additional users. still joining me from the conference is oh donald. great to speak with you. thank you for taking the time to join us. just reading through the live thatn bloomberg now, i see apple is taking a clear stance on privacy, making it dramatically more difficult for companies to attract individual users. to let customers decide on a case-by-case basis whether they want companies to attract them. it seems like an easy way for apple to differentiate itself from the rest of the tech such as facebook and alphabet. >> yes. this is a stance apple has had for a long time. tim cook has been strong on this
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issue that they sell devices and not your data. it is a huge advance for apple and they will continue to play the card particularly as we see the challenges with facebook yet again. today we saw challenges being -- deviceund devices data, that is. yes, it is incredibly important for apple. do is focusey will more on the idea of doing machine learning and artificial intelligence but doing it on the device. it settles an important difference of what we're seeing other companies do as far as clinton devices. feel like the presentation at least so far spends little time on discussing syrian harm. if you look at what is offered , it feels like if they don't do more to a dress this, they will just continue to see the gap widen. would you expect them to do more
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at this stage? >> i would and of course everyone is looking for apple to make a get hansen -- enhancements to siri. but they did today was interesting. and i was 12, they're offering the ability to basic you last year to become a voice interface. that is different from a voice assistants in thehat you can say, hey siri, i want you to do this function in a particular application. it is a very interesting new way to start thinking about theory -- siri and it could be a way for apple to say, this may be a because infor us something major versus alexa and google assistant, apple is falling behind. note that apple is now providing support for some older phones and you know that people seem to be holding their iphones along here. is that just a natural thatction for the length
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people are holding the device and apples simply has to respond here? >> i think that is true and i found it interesting that that is the way they started, the whole section on ios was to say, we will enhance the capability of the phones people had for a long time. they do recognize people are holding onto these devices. to bes an effort by apple realistic and say, people will hold onto these so we want to make them better. factorort of a feel-good . it basically says, no, you do not have to get the latest phone to get our latest enhancements. good thing for apple overall as well, presenting an overall good picture, that these are our ideals and values. we value all of our customers and older devices. it is an important device for them. >> we will see what that actually holds out. let's move on to facebook we mentioned it earlier but there
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was a new york times story that detailed how facebook shared .ser data and friend data there is a distinction. the question is, to the agreements that facebook shares data with device partners violate the agreement with ftc on data privacy? >> there seems to be an argument to be made that it does. more details need to be revealed and facebook has come out and said that these agreements -- most of these agreements, we discontinued and we believe they are part of a larger policy we had around sharing data essentially with service providers or something equivalent. the ine is it raises questions yet again about how freely facebook is willing to share it data and in the age of gdp are and in the age of all of the privacy regulations and concerns we have got, it is yet
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another slap in the face for facebook. will it dramatically change anything? no. far theshows you how data leakage extended. i pect we will see more of this fro os and not just facebook. --l julia: we are turning this may return to roots for microsoft. what do you make of the deal for open source information? >> the thing that is interesting is i'm not sure we will you ton immediately. microsoft can bring efficiency but this is an enormous deal. it is a place where all developers like to store code, particularly osource.
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10 years back, microsoft was anti-open-source. they changed things around and are aggressively adopting it. microsoft is also leveraging the connection between developer tools and the developer community. that is why i think i bought this and philosophically, this allows might soft to be in an interesting position in terms of being a place that developers continually rely on even if they have walked away from microsoft. race questions about google and other platform divided debt providers and i am sure we will see those shakeout but it is an important move long-term for the way microsoft thinks about software development moving ahead. >> thank you. great to chat with you. we will hear from our interview with microsoft ceo -- how he plans to scale up the business p we will get all the
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details. from new york, this is bloomberg. ♪
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scarlet: this is "bloomberg markets." julia: how will microsoft make a $7.5 billion deal payoff? that question was put to microsoft ceo. let's listen in. >> the thing about what is happening in the world around us, computer is being embedded in every place and everything and it is impacting daily lives and economyprecision agriculture to precision two personalized banking being driven by software in every company is becoming digital. -- byorld is being developers.
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development in non-tech companies like retail or energy, is growing by double digits here 25% higher growthes than even in the tech company. it just shows that we are in the very early innings of what will be a set of tools and services required to empower every developer out there. the thing about microsoft, always a developer first company, that is how we got started with developer tools and now we are all in on open source. really, the coming together for microsoft makes a lot of sense for us. we can contribute a lot and stay and to the original ethos that is how we will operate first.orward, developer >> that have been issues finding a way to grow revenue significantly in turn a profit.
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to billion dollars just a few years ago. what will microsoft do differently to justify the 7.5 in dollar price tag? >> we feel good about the growth rates it had but it first starts come whether you are a hobbyist startupdent or a small or a person working in a large company, to be able to use it as a free service, and startup they have done a good job of having a freemium model, going into paying for a bit of organizational use. we can scale that my staying to building that up and making sure it is an open platform for all the clouds as well. we think we can bring a lot to additional customers, but we feel bullish about what we could do for developers just on organically growing.
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>> there has been consternation in the developer community about the acquisition here and i'm sure you have seen some of it, andics saying it is a sad in the list of reasons why is endless. how do you reassure them and bring them along? error --a critical element. we are very committed to keeping that developer first ethos going forward. that is why really between chris , the ceo, and me, we decided to run the company independently, operate it as an open platform as thet, who came to us ceo to of years ago with a lot of open-source credentials, he he will stayeo
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true for anyone demands containing that community. actions from the recent past should help assure every open-source developer of what microsoft does. they should measure us by what we do going forward and hold us accountable. >> it is now time for the bloomberg's newsflash. we begin with first-time buyers accounted for 46% of new merchandises. as far back going as 2012 per the national association of realtors call death but the median age at 32 years old. ofrting to take advantage more easily excess book credits. shutting downis most of its corporate finance division in south africa. corporate broking and sponsors
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units in the most industrialized units in the next six months. they haven't said how many jobs are on the line the biggest lender reported to straight annual losses in 2015 and 2017. hotel --biggest the outlet says there was interest in buying the french government's posts -- 14.3% stake in the airline. the commercial partner as its biggest stakeholder. also fending off a costly and better labor dispute. and that is your business flash update. from new york, thbloomberg. ♪
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julia: this is bloomberg markets. scarlet: it is time that for options insight with julie hyman.
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>> thank you. joining me now for options insight, jim, i have talked all day long about the rally we have seen in tech in particular taking the nasdaq and the nasdaq 100 to new records. it has not escaped your notice either. do you think momentum keeps on going? >> it looks like it. 100 is butting up against the highs from earlier this year here the narrative for us for the whole year has been about a high volatility regime relative to the last five years. balanceto manage the that directng exposure and those risks, we will see play out in the next several months. trade disputes, everything talked about, italy on the radar got the fed next week tightening again. there is no lack potential
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triggers for volatility over the summer months. we want to stay long. >> at the same time, you are convinced we're at that even though we have seen in a sideways movement in six weeks in the s&p 500, a range bound movement. still think the risk as we continue to see these spikes? >> june gets is nine years into expansion. the same fed tightening ahead. the yield curve at expansion. the same fed tightening ahead. about 40 basis points. maybe it is 2019 and you are on the clock in terms of duration. we absolutely want to stay long here with at reason the u.s. specifically, but manage risk and options are a great way to do that. , the proxy for the nasdaq, how do you manage risk? >> it is straightforward.
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we want to play again for potential. breakout two new highs. you can get a quick 1% of de above the breakout. att we are doing is looking july and you buy 176, 181 call spread in the qs again. we call it about six weeks of exposure, one dollar per -- $1.5 for that. it is a nice payoff but again, really straightforward and simple structure using a call red, not bringing it in session offering economy cap to play for this. >> we have talked about microsoft component and apple in the chipmakers of the world. i know you are not bringing the trade today but are you looking at putting trades on those
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individual components or do you like the index trade better in this case? >> all of the above. netflix up 88%. amazon up9%. when name we like on his radcom. -- broadcom. implied volatility around earnings is high is really gone. interesting ways to play it but it is a cheap stock. it is one to watch later in the week. >> ok. jim, thank you. back to you, julia. julia: tomorrow, most influential and dynamic figures from bloomberg invests in new york. just follow the names so you can see tomorrow on bloomberg. ♪
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mark: the u.s. supreme court ruled 7-2 for colorado baker who would make a wedding cake for a same-sex couple. the court is not deciding the
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big part of the case, whether a business can invoke religious objections. the majority opinion is that the issue must wait for further elaboration. >> basically said people are not free to be in the marketplace here this is their aversive that. >> the fact that the opinion is written by justin kennedy -- justice kennedy makes it a little more -- he stood up for equality in the past and it is shocking he did not today. loss.a narrow a limited loss. >> justice ruth bader ginsburg dissented. the united nations nuclear says it is re


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