tv Whatd You Miss Bloomberg June 20, 2018 3:30pm-5:00pm EDT
describes as obstructionists when it comes to immigration reform. it comes after days of domestic and international criticism of his administration zero tolerance policy from families attempting to enter the country illegally. as the fight escalates along the , the number border is up migrant workers 159% since 2011. american farmers have been looking for replacements for the farmworkers scared away by anti-immigrant policies. world health organization says there is cautious optimism the ebola outbreak may be winding down. the agency said the spread of the virus has been largely
contained. 38 confirmed cases including 14 deaths. vaccinated have been in the first attempt to stop an emerging ebola epidemic. in south carolina a judge has dismissed a lawsuit against the fbi for a faulty background check that allow dylann roof to buy the gun that killed nine people at a charleston church. families argued a previous drug charge should have prevented him from being able to buy a weapon. he was sentenced to death for the june murders which prosecutors said were racially motivated. global news 24 hours a day on air and at to attack -- tictoc on twitter. i'm mark crumpton, this is bloomberg.
>> live in new york, i'm julia chesley. julie: i'm julie hyman. joe: i'm joe weisenthal. julia: 30 minutes from the close of trading. tech stocks leading the charge. a new high and the s&p 500 raking a three-day losing streak. >> would you miss? >> president trump reversing course. thishas just happened hour. steven mnuchin's silence could be speaking volumes. years keeping silent on trade tensions with china. disney could be getting a green light on its fox deal. the justice department has approved the deal.
more on the exclusive bloomberg reporting ahead. president trump signing in order a few moments ago to end the immediate separation of immigrant families at the u.s. exit go border. it should spark outrage -- it would -- it has sparked outrage. afternoon after this executive order, reversing what the white house has been saying for this policy is rooted in law and congress has to act. what do we make of the decision on this? where does that leave congress? this issue has created a national firestorm that has roiled the white house. criticism -- it has sparked criticism. i read the text of the order.
it requires the attorney general to file a motion in court that the settlement from 1997 to allow the administration to detain children with their parents. right now there are restrictions on what they can do in terms of detainment of children. ministrationsious have decided to use civil prosecution to make sure families are not separated. we should expect a legal challenge that say this is still not the way to go. advocates who say we do not need to take away the rights of kids. they are not going to be happy with this. joe: part of the argument the administration made previously is they were compelled to separate families on the basis kids couldn't be held in detention for longer than 20 days. if you are going to detain the
parents then you have no choice. how do you square that circle, where you detain them with that also violating the limits on how long you can detain children? >> this is where the administration has to prioritize. does it want to keep families together, which would require civil prosecution, on whether to do a maximum criminal prosecution for everyone who crosses the border, or does it go that route of criminal prosecution for everyone at the risk of separating families? obama and bush said they would not separate families. they went civil prosecution route. the problem is in many cases the rights of children require releasing the kids after a certain time with the administration calls catch and release. asylum-seekers and it having to be released into the country as they await their hearings. some people never show up.
the administration wants to end that. the trump administration has a group of people that said they are going to go the route that separates families. we have any idea what the numbers are of the people who don't return? back to julius question, is there a prayer of weber midi getting through on this? >> there are studies that show it is a minority of people who do not show up. with asylum claims for they want to get right with the law. nobody wants to live in the shadows. as far as a legislative solution of this is important to watch. it is not clear the administration has the ability to do this. republicans, i spoke to
the vote counting team and they do have the votes. they are encouraging the president to speak personally with a list of lawmakers to try to persuade them. if that does pass the house it is going nowhere. it needs a nine to mcgrath's. the only way congress does something is if that puts a situation to deal with families, doesn't do the law, doesn't do this extra money for border security. a narrow solution acceptable to both parties, that is still plausible. short-term century -- symptoms. quickly, you wrote a great article today looking at how this plays politically.
democrats clearly against this. a majority support a tougher stance. how do we think this is going to play out? election strategy to talk about immigration. >> it is a dilemma. they are caught between a republican base that favors tough punishment according to numerous polls and a majority of american public that opposes it. it has been described as cruel and barbaric. michael hating compared it to nazi germany. this is a former cia director saying that. , he says this is one of the darkest hours in the nation's history. there is outrage here. betweenans are caught
people who have no tolerance and no mercy for the people who break immigration laws and one harsh punishment for them. it is something that president trump ran on. the majority of the american public are appalled by these photos. the audio to mention of crying. thank you. perspective on this important merit. -- important information. aboutl bring you details that, next. this is bloomberg. ♪
julie: amazon, berkshire hathaway announced they were improve employee health care.to and now the new ceo has been named today. here with more, zachary tracer. people were waiting for this to find out who that could be. >> is a surgeon. a health care researcher. he has written a lot about what is wrong with health care in the u.s.. by warrenes are read buffett and brock obama. people pay attention to what this guy thinks.
joe: he is probably the closest thing there is, extremely popular among these ideas leaders. what is someone of his wattage enabled a company to do? -- this issentially byuy respected warren buffett and jeff bezos. thisll get the attention venture is going to need to succeed. people are saying who is the next guy they are going to name? joe: a standard operator. he might not get them all on board. individual.nt what about the practicality of managing here?
we're not sure. i'm confused. >> people are spending he will build a team and build a venture around this. this is going to take years. stay tuned. >> it was viewed as revolutionary and a lot of ways. ,ere is a guy who is thinking viewed as forward thinking. what are his big ideas? what might he put into action? his writing has been theoretical. have we seen examples? >> he has written a lot about how there is variation in how people are cared for. the same level of sick get different care at different costs. he pinpointed that. i would expect him to bring that
and emphasize basic primary care . i would expect him to bring things like that to this venture. is heg knock against him has not run a big company. he is a smart dude. incentive, that incentive structure, the setup of the system, which is quite fascinating. independenting actually mean in this case? that was what was quite interesting. >> the companies want to give space to define what he thinks is the best approach to fixing health care. point made that is interesting, it could be that he that they things
don't like. we might like wasteful spending or being able to see specialists on call. could that create tension? >> that is one of the egg is challenges. it is not just three companies. berkshire has 30 companies. from dealing with everyone j.p. morgan to the guys who are loading boxes, driving the trains for warren buffett. that is going to be a huge challenge. how do you get these people on the same page? you anbeauty is it gives ability to make it scalable. brilliant to chat to you. don't forget to take a look at our page on bloomberg.com/prognosis where we
report on the future of health care and financial forces behind it all. technology has been replacing humans more and more. financialn the industry is no exception. discussing whether automation could take over the investment process. investing, people have to decide what rules it should follow passively. the next step, quantitative investing, that is underway. there are firms that are doing it it is only a fringe activity. >> you draw a distinction. you just did between index investing, index funds and etf's, and rules-based investing.
some could be done in the form of an etf. fund,ht be in a statistic in some algorithmic strategy. .here is a distinction one is bad and the other is ok? >> nothing is good or bad. other than how it is implemented. can have a good index fund. if it was priced too high. you could have good or bad quantitative funds. >> what many people are wrestling with, what you wrestled with in this memo, whether humans can invest better than machines or vice versa. it left me wondering, you point out index investing and the
products that followed were at least partly in response to the chronic inability of most professional investors to beat the market. right? >> >> if that is the case, can we possibly fault anyone for not wanting to invest with someone who cannot beat the market? thatere is something matches the market, and it isn't human, that should be appealing. have made the assumption that it can be the market. certainly it is open season on anything that can. quantitative is an example of something that may be able to.
thing about indexing and passive investing is they follow rules. the rules. they don't make decisions as to whether stocks are attractive or not. they count on active investors to do that. if the active investor is judged to have failed that is the reason for the flow of money from active to passive. it as an investor takes the decision as to how the price should be priced and buys at that price following its rules. there is a certain illogic à la the in that -- illogic in that. beie: up next, disney might the happiest place on earth today in particular. the company is close to winning
julie: fox has accepted a bid from disney today, the $38 a share price is $10 higher than what disney offered in december, three dollars above comcast. disney is said to be close to winning antitrust approval for the deal. joining us now, i think one of the big interesting parts of this is comcast, and where it is left in this situation. we have indication it is willing to up the ante further? want this asset. they have made that clear.
disney coming out today in this aggressive way was a surprise. they did not think they would go way quietly but they were not expecting this today. they really are thinking about this. they are going to digest and then figure out how best, what to do. voteelayed its shareholder to vote on the disney bid, due to be held on the 10th of july. they want to give their investors more time to digest this new bid. other events to date. i am wondering if fox is expecting them to come back at it. >> we have had the negative reaction to comcast investors saying they're going to have to put up even more money. you look at this situation. they are going to get approval from regulators.
are we done here? >> they were already told to go away in december. i think they like coming back at it. they want to be a thorn. cang thing, i am not only feed -- competing against google and amazon but nine competing against disney in this new format. where does that leave me? joe: fox investors are absolutely in heaven. now, do they appear to be anticipating something further? >> they are certainly taking it on. wordwere putting the hard on the fox board. think that is what
they are gunning for. sharesu have netflix continuing to go bonkers. it feels like an incredible panic between people by netflix, everyone buying content companies. people just grasp it -- just desperate. thistflix has created desperation. everyone is running around saying we need this. they say they want five new original films for that. they have to make that. >> maybe somebody could have bought netflix but not anymore. it is an expensive asset. >> that is what investors are hoping for. that netflix will buy them. reporter,rg sales market closes next.
the big win today -- tech stocks the big win today. >> if you are tuning in live on twitter, welcome to our coverage. we begin with our market minutes as we see stocks wednesday. the dow lagging once again on trade concerns. perhaps, it is just the claim of the cap that is continuing on the flipside. nasdaq up three quarters of 1%. as we see a real estate and consumer discretionary energy stock strong in the s&p. financial trading lower. stock isgth in the
also continuing its pace. facebook trip -- shares reveling to another record high. instagram had reached one billion users. it is also adding a new igtd section which can display videos full-screen and vertically. amazon setting records as well /10 of a percent. also, alphabet shares touching a record but not closing there in the session. comcast, wefox and have been discussing throughout the day, disney providing a new higher bid for 21 for century fox. the deal is likely to get antitrust approval. comcast shareholders like that it may not win. starbucks in the meantime,
comfortable sales rise just 1%. worst performance in about nine years. investors and shareholders not reassured by the companies plan to do some free configuration and close on some stores. alliances the new ge when it comes to the dow jones industrial average. ge is going to get did from the dow. death.ed from the -- dow. >> let's take a look at some government bond markets starting with the u.s.. moving higher today. a reversal of yesterday. i was going to say, it is going to be a risk. people are happier than yesterday. yields up to 2.93. two year yield up to 2.56%. down african yields coming
, the bounce back in emerging markets after a really ugly start to the year. currencies made some choppy trading, giving you a look at what is going on as far as, sterling is concerned. limited lawmakers ability to negotiate for the eu. it has come to be a battle. irrespective of how bad it looks with the u.k. walking away with no deal at all. euro-dollar relatively unchanged. relative weakness in the cutie and aussie dollar. -- in the kiwi and aussie dollar. a weaker teams -- it to the one-month low. seen session after
session of that pressure and mixed bag as far as currency is concerned. some of those i have been under the most can -- pressure have been because of the tariff traits. -- trade tariffs. obviously, political uncertainty is another key factor that continues to weigh on the currency. >> finally on commodities, oil and called. oil having a very -- and gold. oil having a very nice day. lots of questions of whether they will be of a to agree with anything. to wantabia is expected to push for a supply increase. iran could have the first meeting since 2011 they have failed to come to some sort of agreement. gold continuing to sink down to 1271. poser today's markets. >> -- those are today's markets. >> macron coming out with
numbers that are beating estimates and living up to some higher expectations here. yearngs going up year over to $7.8 billion. earnings per share, a penny ahead of estimates at 315. up to 60.9%., the companies try to get a little bit more insulated in terms of its ups and downs of the memory chips markets. not is a company that would turn a profit. it looks like this latest quarter delivered will see if there is any kind of guidance that comes up either from the company or in the call. keep in mind that the shares are up about 43%. aey have not been trading at record in recent sessions and down off the highs a little bit but nonetheless again, pretty lofty expectations going into this earnings report. for more on today's market action, the spring and mike, team leader for bloomberg's live
blog here. the tech just keeps going. it is just remarkable. >> mostly conjured traded in the stoxx. if you look at the composition, at least, half or more. investors are looking at the port in said -- a safe any trade sanction situation. in addition to be the classic story that everybody loves, it is a good group to have in the league because they pack so much punch for the market. >> is hard to think about what the market with a click -- when the click without them. when growth is fast, people are feeling good. environmenthe only where they are not going to do well this one whether it's a
crackdown. >> that is why we did see some pretty nasty weaknesses in the stoxx earlier this year when mark zuckerberg had a go to congress. everybody was wondering if it was going to spread to google data privacy issues. also, the reciprocal nature of the semiconductor stocks is something that people, the macron numbers, people are most likely going to take the positively. any hint of a slowdown in demand in the tech sector to be that. -- vbad -- bad. >> if you strip out the performance of the tech sector from the border index here, will the return lack -- will return the lackluster? it is struggling in other
sectors. >> small caps have also been on fire lately. another haven from the trade tensions. is,question for the market the fundamental backdrop is so strong, yet great earnings gdp, theccelerating at&t deal went through and now the fox deal will probably go through. we are at that point in the cycle where it would not be surprising to see it you and that is obviously explosive for the stock market. committee, the trade tensions are really what is holding things back. they should possibly get results in. the sinking is a trump would want to get this fixed by the midterm so it is not an issue. back, whatholding happens if the risk is removed?
it feels like we are right back where we were at the beginning of last year. julia has a chart up on her terminal now, volatility is back down where it was before besides mike. -- we saw it spike. is showing the s&p 500 and even see that last year is such an anomaly. josette steadily higher creeping market. year, we another actually have that spike in the market and now we are settling back almost to the 2017 courtroom. -- cauldron. the fundamentals are very constructive for stocks but there is a lot of catalyst that could cause volatility. i can see good returns but with strong volatility with a lower sharp ratio. the next shoe in the trade war is a good question. >> really quickly, earnings.
oracle, falling on earnings. starbucks giving a warning. there is some anxiety about the next earnings season. obviously, going in, the cops are going to get a little bit more difficult. for this year, obviously, it is going to be a great earning story. how much of that is priced into the market, and our people pricing in the speak growth ideas, i do not know? i do not have a firm answer. i think it is just a cycle that has gone on for so long that it has surprised a lot of people and i would not be surprised if it went on longer. the earnings is going to be fascinating. we may need to avoid the this time around. for markets live blog. powerful pension
>> i'm mark crumpton with first word news. president trump signed an executive order to prevent children from think separated from their parents when their families across u.s. borders illegally. we are appealing families being separated. is a problem that has gone on and we are working very hard on immigration.
people left out in the cold. >> the president's reversal comes after days of the strength domestic and international criticism and blanket media coverage about the fate of children separated from their families and held in detention centers. it also comes after mr. trump insists repeatedly that they separation of families was the fault of democratic lawmakers who refused to work with him to reform the nation's immigration policies. united airlines has asked the federal government cannot to fly immigrant children who have been separated from their families on their aircraft. conflicty is in deep with the companies like this. both airlines have said they have no knowledge of whether u.s. officials use their flights to transfer their children. the trump administration will reveal a new tax for next week.
steve mnuchin says it will be in the form of a postcard as promised. mnuchin was speaking at a news briefing marking the six-month anniversary of the tax overhaul. republicans had promised the revamp would make filing taxes as simple as filling out a form the size of a postcard. one a crucial brexit vote in parliament. she won on the issue of the so-called meaningful vote. the vote was over whether made should take the u.k. out of the eu without a deal. parliament once a meaningful vote. moving forward. global news 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries, global news 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 i am mark crumpton. this is bloomberg. "what'd you miss?"
>> the corporate pension industry has been quiet the targets way to run the market. columnists ision here with the story. grinder to have you with us. talk about -- brian good to have you with us. talk about the drivers here? >> there is so much going for the pensions right now. in the public space there is all this talk about how underfunded many state plans are but if you look at the private pension plans, they are actually quite well-funded. 90% or so. what you are seeing is a lot of shifting now because stocks are in record highs. here that young identified is for structural reasons, the pension funds have long-duration assets that match their liabilities.
what you see is the change in the tax code that would temporarily be increasing demand pulling for. -- it forward. what is a change? >> but the tax policy going down from 35% to 20%, part of that is for months, you can contribute to your pension plans as one example, and take advantage of that deduction. what is effectively encouraging pensions and companies to do is pay more to their pension plans. ,ou have seen several companies and the first quarter, contribute a million dollars or more to their pension plans. get them funded, often. -- lock in. essentially, be all good with the plants a lot of them which are close to. >> the effect of all this is that we have these pensions flush with all of this cash
buying longer duration treasuries. to we have an idea of how much they are undercutting that? right, the sort of point that i was try to get across is that jay powell was saying during his press conference, we understand that the short end is going up because we are raising interest rates but what is going on in the long and? i am not sure. you look at the strips market which is essentially banks that take 30 year treasuries and coupon payments and the principal payments. this is perfect for pensions because they are trying to match whether they need to pay out money to the retirees and strips are ideal for that. you not have any interest payments, you just have one gigantic principal payment on a single day. that is a perfect instrument and as you can see, it is at an all-time high. the charts are going to the refrain.
-- through the roof right. >> there is a window where we see in particular, this impact on the market. how big is the impact to go back to what they were saying? what heaven sent to the on market when that suddenly ends? extrae a whole host issuance coming from the treasury department. is also going to have an impact on these pension funds? >> as far as he is a full scope of the industry, it is hard to say. when you look at the 30 year yield for example, it does not even compare as far as, how much higher the short-term yields have gotten. 30 year, i can barely crack the highest the sheer. year, maybe -- this you can start to see a thicker yield cutera that would have --
curve that would have real implications and we could see how far ahead the effect would go. >> really interesting stuff. thank you brian. bloomberg opinion columnist, brian chappatta. coming up, as saudi arabia, iran, and the rest of opec wrestled over the boom, we look at the technical analysis of the oil market. from new york, this bloomberg. ♪
walter zimmerman, she is the -- atcal analysts is ipaq. >> oil today is rallying but they last month was down about 10%. the last time you were on you had a bearish call on oil. where are you? >> a month ago, i mentioned that is the most dangerous time of the year for crude oil. there's this all-time high of speculative length. since then, is down 12%. the high, the weekly high close was 7128 in my original target for the height of the year was 7124. first leg up from the slow to this high and you edited the slow and you get 7124. you had a weekly high close of
7128 and it dropped 12% but the thing is, the average spring to summer declined in wti is a 21% loss in value. we have barely done half. >> 2% down below 60? >> 58 would be an average spring to summer declined. >> that is a slightly bearish call on the assets. let's take a look at gasoline. is this another way federal vr looking at -- wave pattern you are looking at? >> how may are bullish and how many people are bearish? the candidate for speed -- spring peak here, this is market pain, a sentiment service. the last time there were this many people bullish on gasoline was right here. gasoline lost 26%. the previous time, was here at 30%.
of course, those this big tumble. the average seasonal decline in gasoline is 23%. thatwe could get more than because we have such a bullish sentiment extreme. history says the last two times there were that many balls that that, thels that bulls got a 30% loss. >> let's turn to the equity market and take a look at the dow. i think they were talking about the possibility of not just a correction but a bear market. you have a pattern here on one of my favorites. >> the first glance, it looks like the trading range. technical no man's land that has been stuck since early february. you look a little closer and purchases ominous -- there is this ominous bearish wedge that
should be sitting in a more neutral range. just two days ago, it gets down to the wedge support line. today, friendlier to recover -- failure to recover. this is very ominous. get a major long-term sell signal if this previous level is broken. >> the target of that rising wedge is down toward set a slow in april? we goe saying that if below that range, that could be the bear market that? would fall? for your analysis, you recommending to sell stock strength? -- right now? "what'd you miss?" >> -- >> at least some aggression. maybe you start ringing the register on some of this longer-term length to reduce exposure. >> is below?
-- if below? >> i would just evacuate. i would not want to be long walk equities -- from equities. by the end of this month, early july, things could turn pretty ugly. >> pretty serious story you have here, walter zimmerman of ipaq analysis. back to julie. >> think he so much for that. you can interact with the chart you just showed you. you can browse the region -- recent features. you can deep dive into them. it is a grateful. -- great tool. sales and expected higher costs and that is what is leading to the lowering of the forecast for the year. just looking at the action that we can see here in after-hours trade.
well, it's a whole day's worth of love songs. 300 minutes of baby videos. or, it's a million chat messages. a gig goes a long way. that's why xfinity mobile lets you pay for data one gig at a time. and with millions of wifi hotspots included, you'll pay less for data. it's a new kind of network designed to save you money. click, call or visit a store today. mark: i am mark crumpton the
first word news. bowing to intense political pressure and following days of domestic and international condemnation, president trump ended the process of separating children from families after they were detained crossing the u.s. border illegally. said, i think anyone with a heart would feel strongly about it. we don't like to see families separated. he continued, we don't want people coming into our country illegally, which takes care of the problem.
commerce secretary ron's faced ross faced tough questions about the steel and aluminum tariffs. >> do you consider these tariffs to be attacking american families? you are putting jobs at risk and destroying markets, foreign and mastic -- and domestic. >> the actions taken by the president are necessary to revive of america upon's and aluminum industries -- steel and aluminum industries. allowing this to continue unchecked impairs national security. mark: ross said the tariffs will reduce imports to the levels needed in the united states to achieve long-term viability. the puerto rican governor has
signed a historic bill to privatize the troubled power company in the country to help minimize outages that have followed hurricane maria. governorsigned by the allows for to rico's electric power authority to sell its power generation plan. the company carries more than $9 billion in public debt. global news on air, 24 hours a day and at tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. let's get a recap of today's market action. we saw a mixed picture, with continued strength for the nasdaq, rising to a record once again. 500, up as much as
the dow was down on a percentage basis. ulia: saudi arabia has been included in the msci can emerging markets index. it has been a long time coming. any further headlines, we will bring them. silent.uchin has gone typically a vocal support of the president's, his silence is being perceived as a clear indicator of dividing factions within escalating trade talks. talk us through the situation. steve mnuchin has been a strong supporter of the president. under,e tensions he was and is suggesting the trade talks with china on pause, he has come under fire.
has, ever since he negotiated a truce between united states and china coming off his trip to beijing. deal wase that condemned by the likes of steve bannon and other trump advisors, he has pretty much gone silent on china trade policy. we have not heard much. we heard him we need raining the message the united states does not want a trade war -- reitera ting the message that the united not want a trade war. maybe he is working internally to persuade the president to step back on economic aggression. people rise and fall all the time in this administration.
couple ofy sure, a months ago, when we were talking not going toavarro meetings -- whatever the situation is, it is not necessarily permanent. i don't think his star has fallen. steve mnuchin is one of the few high-ranking officials that has not been tweeted at by the president or publicly called out. he has never publicly spoken in a way that has broken from trump's policies. like theid he does not label he has been given by his opponents within the white house, like to call him a globalist. he said, i helped write trumps economic agenda. he just has a different approach. he ist: it sounds like
being segment in public, but not necessarily in private. stops -- mean he has stopped putting forward his view to the president? is to read theis tea leaves. he is continuing to debate. he is engaged daily and crafting toward tradecy policy overall. to commenty declined whether steve mnuchin was still having talks with chinese counterparts. internally, he is engaged, but he is not doing any previews on television to come out in front and whatte the tariffs the stances of the president. -- stance is of the president.
julia: the press feels the steve mnuchin is the least person they can negotiate with going forward. what is done behind the scenes of the announcements the president is making on the prospect of greater tariffs? behind being made possible negotiations of coming to some kind of deal in the future? no idea what the dialogue was with china yesterday. the top trade advisor in the white house said to reporters phone linestates are always open if china wants to engage. it is interesting what you said about the treasury secretary. the chinese have always traditionally, since the bush administration, looked to the treasury secretary as the point person for the u.s.-china economic relations. they prefer steve mnuchin
because he has a friendlier approach to negotiations. he is the good cop and trump is using peter navarro as the bad cop. scarlet: thank you. julia: quite interesting to have peter navarro saying the phone lines are open. who, givenbe calling that the u.s. administration is talking about greater tariffs. it is always face in these kind of negotiations. may -- moreheresa battles to come for the prime minister. this is bloomberg. ♪
what'd you miss? theresa may fending off rebellion by members of her own party. legislation would have given parliament more power in negotiations with the european union. butamendment was rejected, this could foreshadow more problems. two guests are joining us by phone. nina, always great to chat. what is goingtand on with theresa may. my understanding is that this is about limiting the powers of parliament. it is those people that are afraid of what a no deal exit from the european union will mean. where are we now?
nina: this was an important piece of legislation going through the house of commons. what the amendment suggested was that if the government didn't get the deal finalized, parliament would take control of the process. defeated, evenas though it looks like theresa may might lose. six of her own mps rebeled. rebel were threatening to if parliament needed to have a say. there has been this backroom trading. we don't know what theresa may has promised. pro-eurorra p.m. -- tories, they would never put party unity above their
respective wishes -- the big , where is this going radinghe future t relationship? this closea may won spoke and there was a similar vote the week before that she won closely. in the meantime, the clock is ticking. progress being made on any of the key sticking points with the actual separation? nina: all of this is semantics to a certain extent. it is all about what role parliament is going to take. the big question, the u.k. is negotiating with other countries. we have european council summit next week.
that the european commissioners have updated their conclusions. they don't expect much. for a long time, there was the thought that this would be the breakthrough summit. now that the european commission is already dampening hopes, w that we haven't gotten there in june, we are not going to get there in october, either. with the way things are going, there might have to be some special summit called in october through november. we are getting very close to the wire. do we continue to have more summits added? do you see the deadline being extended? is the risk of the hard brexit just rising and rising?
nina: there is the risk of a hard brexit. stormn have a perfect were all these elements provide -- where all these elements provide crashign without -- crashing without a deal. they can extend the articles of negotiations, but you would need the unanimous agreement of all the 27 european union countries in order to do that. just like the u.k., the summit would not be prepared. if britain comes out with a new deal, we see a return to the hard border on the islands of ireland.
i don't see how they are going to square this circle before the date. joe: how did the tensions within angela merkel's own government complicate everything? it complicates massively. what britain has done when it comes to this negotiating position in europe is to overrely on berlin. we saw this during david cameron's own renegotiations with the european union ahead of the referendum. angela merkel was not able to give this much attention, because she was struggling with the migration crisis. i think the u.k. hoped it could do a special deal with germany. germany has other issues and other problems domestically. you see this trouble that angela merkel is in.
there could be a crucial point within brexit negotiations, that week.l summit next another reason we can't be too hopeful is that the migration issue will be on the agenda and merkel will be trying to anger migration leaders around here. is one of many issues weighing on the european union at the moment. angela merkel's inability to concentrate on this might have an impact. great to have you with us, as always. next, and ongoing economic crisis. developers building luxury condos in venezuela. this is bloomberg. ♪
julie: saudi arabia is being included in the msci emaar to market index and argentina is also being updated to emerging markets status by msci. arabiai believe saudi was expected to be added. what about argentina? peter: that was a bigger surprise. it was a welcome victory for the president. he got the $50 billion i am a phone -- imf loan recently. there was a welcome sign of support from the international community for a country that has been going through a rough currency crisis.
joe: either estimates for the dollar flows that are attached to this -- are there estimates for the dollar flows attached to this? peter: this is difficult to predict. there is more access for international investors to buy those securities. it this is aid victory for argentina's leadership? what kind of investment have we been seeing come into the region already? ater: the case of argentina, lot about flows in recent weeks -- a lot about flows in recent weeks and months.
hopefully, argentina will start getting that capital back into the country. julia: think -- great to have you with us. what'd you miss? good shortages and crime, seeing caracas.tate boom in food shortages and crime, seeing a real estate boom in caracas. >> this is what is happening in venezuela right now. there are so many reach people -- rich people who can't take their money out so they are turning to real estate investments to protect their assets and they are losing value b thy the day. it is a surprising situation in venezuela. see a lot of social
divisions. andwalk down the streets cvs hightower's all over the place. se hightower's all over the place. joe: is the problem that they won't be producing cash flow? cycle, will they endure some sort of real value at some point where there is a rebound? people investing venezuela think all of their investments will have value again. now, they don't actually care who is going to buy them or rent them. there are so many people investing their. -- investing there.
there are theories that there is money laundering going on. the question is who has links with the government, who can get the contracts to build -- bill, so they are taking advantage. julie: how do you pay people for construction when you have the value of the currency fluctuating so much? how do you find materials? is it difficult to get these buildings up? who have links with the government, most of this material is given by the government. people can find materials and have the money to do so. ia: are you going to buy or rent fees, given the economic situation of the country -- these, given the economic situation in the country?
how do you get a return on your investment? you see highla, inflation of almost 20,000%. theany people believe situation is going to change at some point. here.s why you see this joe: do you see any other signs in caracas of economic rebound, or is this disconnected from what is generally going on? here.is going on like, the regular venezuela and could not afford to bring a full , their their table salaries are very low. scratching their heads and saying, this is crazy,
our phones are more than just phones. they're pocket-sized personal trainers. last minute gift finders. [phone voice] destination ahead. and discoverers of new places. it's the internet in your hand. that's why xfinity mobile can be included with xfinity internet which could save you $400 or more a year. it's a new kind of network designed to save you money. click, call, or visit a store today.