tv Whatd You Miss Bloomberg July 24, 2018 3:30pm-5:00pm EDT
veteran national convention in missouri, president trump urged farmers to stick with him. president trump: tremendous progress, they tell me they do not want to have the tariffs put on them and they are all coming to cs and the farmers will be the biggest beneficiary. watch. we are opening up markets. you watch what will happen peerages be a little patient. mark: the ministrations of the aid will involve direct payments to farmers, the purchase of excess fluid and trade promotion programs to help create new export markets. secretary of state mike pompeo says he looks forward to testifying to congress about the u.s. relationship to russia. speaking in the san francisco bay area today, secretary pompeo says history will show the world that if it's from president trump's meeting with russian president vladimir putin. scheduled- pompeo is
to testify before a committee tomorrow. officials say the death toll from forest fires near athens has risen near -- 274 in the wildfires continue to rage through seaside resorts music capital, torching homes, cars, and the country's prime minister declared three days of national mourning those killed in the deadliest fire season to hit greece in more than a decade. prince harry attended the international aids conference for an organization aimed at targeting infections in men. he noted that for more than 30 years, it has been a place where science, activism, got, and medicine have come together in a fight against hiv and it's. rise to thether to big challenges the fight has required. of a deadly stigma around the virus and calling out the prejudice that has fueled it , the heart wrenching work to
prioritize research. to make the world passes government to play their role. >> the africa-based charity helps youngsters living with hiv. news 24 hours a day on air and at tictoc on twitter, powered by more -- 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. >> live from bloomberg's world headquarters in new york, i'm julie hyman. onre are some antics going here at we're 30 minutes from the close of trading in the u.s. joe: the question is what did you miss? >> earnings season is in full swing. the membersl break
and give you instant analysis. keep america growing, the trump administration delivers $12 -- will deliver $12 million in aid for tariffs. will the guarantee be the bedrock for the economy? one professor makes that case. earnings already out and earnings on tap here this morning, positive numbers from verizon, and after the bell, we get at&t and texas instruments. we are looking ahead to reports from ubs, boeing, and for more, remain, the news is not so much that we have the earnings, right? on balance they have been beating estimates i a higher rate. the news is that stocks are not , particularly the nasdaq. , particularly the nasdaq. >> you kind of saw a reversal on the nasdaq and again, after
alphabet's earnings last night, we thought -- expectations were that we would come into the race is at least for tech stocks. when did -- when is a beach really a beat? companies are bidding on a high level with revenue, but you are seeing the forecast come in below what some investors were expecting, or they are really not giving up a lot of enthusiasm. the look of the s&p five hundred revenue, buton they came with the forecast range and the low was below with the average estimate was. you see the stock is down about 5% or so today. jetblue, a similar situation. same thing again with peabody. remember they came out this morning after the open and they were basically had a 52-week low despite beats on both the top and bottom line numbers.
again, it is the forecast and happy aboute not it. joe: one of the big questions for the quarter is the degree to which tariffs are expected to .eigh on companies are we seeing any common thread so far in terms of meaningful impact hurting stocks? >> the key word being meaningful, no. you look at the companies that have missed, it is really only a handful of them. really only two of the companies really highlight a systemic issue related to the economy and trade. whirlpool, and i believe the other one escapes me but whirlpool was one of the big names. alcoa came out as well. most companies that had come out with disappointing forecasts were earnings really hadn't decided the broader issue. they have really been very company specific issues like you saw with wells fargo. comments, most of
regarding trade in tariff impact has been relatively muted. ceos and cfos are basically saying we are it -- worried is --it but the impact >> harley davidson being another company that commented specifically on it. there are enough companies out there benefiting from the trade war. , am thinking of new court which is doubling investment. dynamics, iteel mean, they were taking off today because they are benefiting from the higher price environment. down the road especially if some trade issues get resolved. you mentioned cfx. a lot of the haulers will do well. i think once we see some of the other freight haulers, you will see similar results. >> let's go back to tariffs. it is true -- it is we're that alphabet came out with these strong numbers or so it seemed, and everyone is like all right,
tech stocks are off to the races. that has been reassessed, the rally has faded a little bit, netflix we all know the story, so are people starting to come overall, look at tech and say man, this is a tough environment for them to continue to perform? >> consider how high the expectation is. for the tech sector. to see the reaction as the day went on today, it does not bode well for some names coming up like facebook tomorrow and apple next week. an issue is growth, growth going forward are not in the second quarter but of what we will get later in the year, there is just not a lot of confidence that until some of the other issues are resolved at these companies will be able to continue that performance. >> alphabet up 3.7%. it is not like they have sold off.
the nasdaq up further, which is what we were expecting. >> it is worth pointing out it is the nasdaq composite or the nasdaq 100 still in the green. it is the smaller names, perhaps. >> usher point out the new york faang index is basically flat on the day and that includes all of the big names, as well as a couple of the others. >> still pressure on facebook to do something special tonight if it intends to trade higher by the close of tomorrow. all right. thank you. equities strike a deal with public safety solutions in mind. we get the latest on a three-way merger from their new ceo. this is bloomberg. ♪
>> we are watching shares gaining, a big bump up after the california governor jerry brown proposed a bill that would change a key wildfire provision. right now come utilities can be held liable for a cost of wildfires the equipment ignites. -- ifor brown said utility would act reasonably. it could greatly ease the financial burden on copies like pg&e if they are found liable for those fires, especially ones that torched northern california late last year. now us turn to m&a. there has been a 13% increase in deals for public safety technology companies. alix joins us now from san francisco with more on the latest of such a transaction. and bain capital are the latest contributors to the uptick. the firms have agreed to combine three portfolio companies into one to sell software to police departments and other agencies
are joining me now from san diego, simon will -- simon, how did the deal come together? collects we have explored the deal for about a year now. it became obvious that by combining the three companies, we could create a market leader exclusively focused on innovating for the public sector. we will have the broadest software solutions, and public agencies, and we will have a geographic reach to bring that region to agencies of all size and canada as well. never has there been a more important time to bring innovation to the public sector. the rhetoric out there around public safety has gotten louder. it does not always mean an actionable increase in spending dollars when it comes to government spending. are you seeing incremental by the clients you selling to, municipalities and the police department when it
comes to the focus on public safety? >> you hit the nail on the head. violent crime not a problem in most american communities according to the fbi here the number of active shooter instances has grown since the year 2000. staffing levels and most public agencies have been flat during that time. combat rising crime with fewer resources and that is where we see a critical role for technology to act as a multiplier and make sure they are effectively -- effectively using these first responders. >> you're looking at three you are combining here. you look at the opportunities going forward and scale is to the advantage. other others -- others -- other very fragmented section of the software industry? broadestwill have the portfolio to meet all the needs of agency customers and we will
also have one of the country passes largest networks of safety agencies and we will foster more cooperation across the agencies. being able to share 911 dispatch across the county lines so if there is a police officer or anetruck closer to emergency, they will be able to respond more quickly. a larger set of data to look for crime were in may have crossed the county line. >> the tech sector is learning quickly the need to have a relationship with the current administration. is it look forward, important to back certain candidates? are you behind because they seem to be enthusiastic about increasing spending at some of your public-sector customers? >> we do not see it is a very politicized process. that may change in the future. what we can say is if you want on merit andted
not how well the trees are trimmed in the park, we are asking strong demand for the public safety solutions so that mayors have other ways to combat crime in their cities. >> when i see a roll up like this, the question comes to mind, does this mean peak asset values for what the private equity companies are looking at? you said the deal started coming out a year ago and that is right around when vista. your company or $800 million. privateeeing peak equity right now? did you get a read of that from your backers as the whole scenario came together? >> i do not think we reached the peak in the public sector software. it is a fragmented market that has enormous opportunity. if you look at technology spending, local government in the u.s. is over 100 billion dollars, the single largest
software market in the world. private equity saw the opportunity that we see, that this is a highly attractive space with strong demand, but -- the kind of solution we bring to bear. are much better positioned to pursue it. >> simon andrew, a ceo of this company, thank you for joining me. >> thank you, alix. tech deals reporter joining us from san francisco. a look at some of the biggest business stories in the news right now. u.s. approval for what could be another potential main dollar drug like it's blockbuster arthritis treatment. the new drug is an oral treatment from -- for a gynecological disorder. -- first has been approved to be approved in more than a decade. investors were -- the forecast -- jetblue says one benchmark measure of costs will rise 3% this quarter after its looting
pricier jet fuel. ivanka trump is shutting down her clothing and shoe company and says she does not know when or if she would ever return to the business. several big-name department stores have dropped the brand from their lineup. 's nest your bloomberg flash. >> coming up next, tariffs are great according to president trump at the agricultural base does not think so. bailout farmers who are caught in the middle of the trade war? we will discuss this. this is bloomberg. ♪
tremendous progress. they do not want to tariffs put on them. they are all coming to see us. the farmers will be the biggest beneficiary. watch. opening up markets to watch what will happen. just be a little patient. welcome allen now. walk us through how this will work and what form the aid will take and when it will be deployed. >> we still need to know a lot of details. the white house announced $12 billion in assistance to farmers which will come basically in three ways. one is direct purchase of commodities like soybeans, commodities that have very much been targeted under the trade action we have seen going back with china and other countries. in -- direct purchase of commodities, that could be everything from almonds to the gums to other forms of nuts, fruits, and vegetables are finally, a little more funding for trade promotion. this is the idea the usda takes
part in efforts to expand the market, convince buyers to buy u.s. products. aboutill all add up to $12 billion but we really will not know until after the fall harvest. last week, the agriculture secretary was saying they would announce the plan around labor day. they decided to announce it today. the president is speaking in iowa on thursday. he was in missouri today. looks like the real details will still wait until around labor day. the timing of this, we are not sure exactly why it was done this way but we know the president is in the midwest and farmers have questions. joe: where does the ute -- usda get the authority to spend $12 billion without it being -- by congress? >> the commodity credit organization, part of the usda, does have statutory authority to spend money for such projects during times of emergency. this is not unheard of. the obama administration, there was a big drought in 2012. you saw them buying pork,
chicken, lamb, about $170 million worth. this time, obviously the order of magnitude is much higher. this is not a response to some otherworldly, outside the u.s. condition p are this is the president's's own trade policies grading the situation. that has a lot of republicans especially in congress concerned with the amount of money being spent to basically tell out farmers. >> how much move the dial here? >> it pushed the soybeans out a fair amount. is saying look, this is aid to farmers per farmers spend money on -- in other ways. this is a shot in the arm to the royal economy. be president is saying to patient and stay the course for >> i'm curious if that is the case. with the president saying be patient. the most rosy outcome for trade would be that we see trade removed as a result of the
back-and-forth tariffs eventually as people are brought to the table. what is the history of these types of aid packages being once the barriers are removed or once the trouble is removed, or is this $12 billion that will be spent, that is it, it is money out the door and the aid is being to point? >> we really do not have a precedence for that. these are being used for different reasons than what you normally see. is being billed as a short-term program, a believable think i do nothing for white house or the usda really wants to see this become a long-term situation. the question is as the trade war goes on, will this be for that specific circumstance? mark does this fundamentally restructure farm programs with the authority and what historical record we do have, that would not seem to be the case. >> good stuff p are allen, thank you for breaking it all down for us.
stock of thethe hour p are we will stick with that theme. shares of this fertilizer company up more than 2%, best day since june 6. this as the trumpet ministration plans for 12 plane dollar aid package for farmers. abigail, you have taken a look .t this abigail: you're right, it is the entire estate -- the entire space. what is interesting is the idea that of 12 plane dollars in aid is given in various ways for farmers, the logic is they will spend it on equipment and fertilizer and it will offset some of the prices we have seen for both crops. something interesting here, it opened at the highs of 5%, so it is more of a strength for theic'supported --
industry's spike at the headlines this morning. joe: looking at the chart you showed, the action is fading all day. it seems like this one less than the the industry's spike at the headlines this morning. others is sensitive to those . >> i wouldn't say it is less sensitive but apparently he is a real there. he has been very bearish on one of the fertilizers. as we hopped into the bloomberg, you can see why he is changing his tune. chart.n the one-year you can see it around flat. i do not know -- know if you want to say he is throwing the tower on it but he is more bullish on this. i spoke to a trader in the news has already priced in. they have talked about this for a month. analyst, same thing. the analyst i spoke to was saying this is really getting the trade to sharpen their pencils, why is this guy becoming so positive and fertilizer. it bullish contact overall but well off the highs for mosaic
more so. classes interesting because what is good for mosaic is not necessarily what is good for dear. in other words, a farmers have to spend more on fertilizer product -- for example, maybe they do not have as much to they have to spend more on seeds, for example. >> a great point. the other thing is, we want to know the details of the packet for another 6-8 weeks. that could depend on how the farmers do spend the money or what money they have. a point i would like to make is the politics behind this. if we hop back in and we take a look at what i'm calling the dream team since the election, it is rather selective. only soybeans are down since the election p or wheat and corn higher. to wonder whether the farm aid package has more to do with election politics and that sort of thing, as opposed to subsidizing weakness. >> yes. >> nothing to do with anything. thank you very much.
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a more than 1% swing in the nasdaq despite that are earnings from alphabets. -- alphabet. i'm julie hyman. scarlet: i'm scarlet fu. weisenthal. joe if you are tuning in on twitter, welcome to our closing bell coverage everyday from 4 p.m. to 5 p.m. eastern. scarlet: we begin with market minutes. take a look at the averages and nasdaq 100. julie: we saw the nasdaq at one point gaining more than 1%. and, falling about a quarter percent. even as the s&p and dow hung onto gains. betweensconnect here industrials here. daynasdaq 100 is up on the by almost a half of 1%. it looks like some of the smaller cap names were
responsible for some of the declines year. it is up half a percent on the day. also, the ruffled 2000 fell on the day. component size and the fact that it could have brought itself down. harley davidson is out with earnings that were better than feared as they are navigating the tariff targeting motorcycles. they shipped some of the productions overseas. sharing czar inclining. on the flipside, we have jetblue -- scarlet: texas instruments just reported they are getting a forecast for third quarter numbers and they are saying anywhere from $4.11 billion to
$4.55 billion estimates. encompass theoes average analyst estimates. as for eps for the current quarter -- third quarter, the current quarter, is anywhere $1.63..61 to the outlook here is pretty much in line with consensus estimates. julie: the backstory on texas instruments has to be the ousting of its ceo for misconduct. he took over on june 1. this happened last week. who has been ceo for more than 13 years of re-taking over. companies gave out preliminary second-quarter numbers at that time. the forecast here is what is new from the company. sayresting to see what they on the call about the ceo transition. scarlet: speaking of
transitions, google lemon announced its new ceo, calvin mcdonald, as the chief executive. julie: he's from sapporo. scarlet: interesting ." ." julie: -- julie: he's from so for a -- sep hora. scarlet: interesting. julie: there was misconduct. scarlet: i don't want to say what kind because they were not direct with it. mcdonald served as president and ceo of sephora as you mentioned. he will also be joining the board of directors. had beenphy asporarily leaving lululemon they looked for a replacement for the other ceo.
we will see what the market reaction is. what does the company due out with its earnings -- when does the company -- when is the company due out with its earnings? and until december. is anythingif there to watch there. quickly, let's look at jetblue. jetblue is coming out with a forecast below estimates that said costs for each seat flown a mile is up 3% in the quarter even after it and excludes gains for jet fuel expensive. -- expenses. then, there is whirlpool. if harley davidson was a surprise him once i come a whirlpool was perhaps a surprise on another. it was down, not as much because of terrorism washing machines itself, but because of an increase in raw material. raw material, a lot of the have been downls
so aluminum costs are up. it is one net loser at least for now from the tariffs back-and-forth. at thet's take a look government bond market in the u.s.. it not a 10 of action today. the two-year yield inching up a little bit. the 10 year yield is up 2.95%. there is a bigger picture that we saw steepening and selling on the long end of the last couple of days. celebrate today. scarlet: let's look at -- joe: so a break today. julie: let's take a look over here. theresa may, her department is now responsible for the talks and investors see this is a shift to a softer brexit. is pushing the sterling to a one-week high. it losses much a 7% in the past three months. the uptake trims the loss to a 6% drop or so. plunging to a new record low,
the central bank in turkey kept interest rates unchanged. we will discuss this later with michael harris. commodities are stronger after a bit $15 billion investment from china was secured. the loonie is also getting a bit of a boost in oil. joe: let's look at the commodity starting with oil and gold. oil bouncing a little bit, the less than 1%. gold is doing nothing. the interesting action, copper having a nice day over and up 2%. china's market is on its longest winning streak in the longest in a few years. the three-day win streak as the government does all sorts of stimulus to get lending going. not surprising to see a boosting cover. and, a boost in soybeans. that is with the administration to mitigate the pain or bailout
farmers in some way. a $12 billion plan, part of which would include commodities and prices. you see the action and soy. those are today's market minutes. scarlet: extended market minutes because of earnings. now, let's bring in that as a chairman and ceo, michael. we were talking about this earlier as the nasdaq was at a record high. it started strong, and even with strong results from alphabet. is that indicative of something larger? michael: not really. i think the nasdaq is stretched compared to the overall equity market. at the end of the day, they will close at a six-month high and the nasdaq 100 closed at an all-time high. it is difficult to complain about that. joe: overall, what is the deal? . we have a new high here and a new hi there. >> i think not that much has changed and we are seeing an
earnings season. there was a really big change in investor sentiment previously, not so much toward global equities. actuallyeeing is that there is plenty of demand across the world. pricing power is really the issue at stake. if you look at what has been done badly in the last few days, jetblue and whirlpool, the margin costs does not have much to do with tariffs. it is more this general reflection very move. i think the market is beginning to sense it is overly active. this very violent one-way trade to cold in the middle of may and ran through the second quarter. it is starting to unwind the other way. joe: on whirlpool, you mentioned the increased cost and pricing power, is there a dichotomy where companies don't have the ability to pass it along? michael: there is no doubt the
input cost. it is logistics, labor on top of that. input costs are definitely going up. sometimes the output costs are also going up. where you are in the middle of the chain comes out during earnings. what you see is an exaggerated response. lippert -- the market deeply punishes people who overreact. julie: we have seen more violent moves in this quarter than other quarters. when you say strong demand across the world, i'm curious if the balance of that demand is changing to any extent, partially to this administration shaking up the trade agreement? michael: there really isn't any sign of it. you see the markets discounting a slowdown. saying global growth will continue. julie: but the nasdaq is almost a record. michael: if you look at the performance of u.s. equities versus global equities, that is a stock. version. look at the two indexes
moving in the same direction, they basically moved in opposite drive actions -- opposite directions. scarlet: so you're saying sentiment toward u.s. economy and companies is holding. michael: investor positioning changed radically. scarlet: is this justified? michael: i don't think it is. i think you'll see the rest of the world catch up with the u.s. over the first quarter. -- third quarter. having a the russell weekday and em stocks having a strong day, what is the catalyst? it did that it got too stretched or trade fears are overblown? it had's biggest andhly outflow since 2008, 2018, as if called as it has been, has not been 2008.
short trade has been a popular trade. you expect to see the russell come under some pressure. that would be a typical unwind. julie: we of also seen divergence between tech in the united states. we talk about how strong tech's with the united states -- with the exception of netflix. -- tech is with the exception of netflix. you have the ratio on the bottom here. do you think hereto in particular investors are missing something? i think em tech had a phenomenal 2017. 2017.ech had a strong i think this chart goes back two years to show the em low at the beginning of 2016. olive that from this point on, they probably move in the same direction. if u.s. tech moves higher, there
is a good chance em follows it. scarlet: if there were another shoe to drop, what would it be. -- be? michael: evidence that the tariff war was deteriorating underlying earnings. that is the biggest danger. the general cycle in e.m. turned around in the early 2016 and left to its own devices, i think it can still get high. joe: what is your take going on in china. weakness and we have a bounce in assets thanks to stimulus plans. michael: simply, i think you have tight financial conditions in china banking and loose conditions and the banking system. things ok on the overall economy. scarlet: sergeant interrupt. at&t quarters earning just came out. julie: they were lower than estimates. thelet: the top line,
second quarter revenue, 39 billion dollars, analysts were looking at 38.7. at&t, a lot of questions on the conference call will be on what happened -- happens next. it is less about the numbers that had crossed for the quarter that already ended. you're going to the results, is there any mention of time warner? julie: they talk about the fact that they acquired time warner as of june 14 and the second-quarter results include their opening balance sheet and operations beginning on june 15. as well as transaction costs because that is one of the keys that this transaction has already completed. ,f the government is successful that it will roll that back somehow. scarlet: in the outlook, at&t sees the outlook in the high $3.50 range. beat on theo be a
outlook for the full year. at&t shares at the moment are down about 2.75%. julie: just wanted to mention also that subscribers i'm saying, the company said it gained a net of 3.8 million and a lotubscribers were domestic. i do not know how this compares to estimates, but it looks like the total north american wire customer base was about 163 million as of the end of the quarter. domestically, that was 146.9 million. i'm not sure how that compares with estimates, but those are subscriber numbers. scarlet: we will get more analysis on at&t with john butler shortly. give him a few minutes to digest the numbers and look into how comparisons, on say verizon, did not have to do deal with the
distraction. let's go back to michael. we were talking about emerging specifically.na your take and read on what is going on. michael: you're quite loose conditions in the general with mortgage credit, underlying lows to business rates, and interest coming down. shadow banking on the other hand is really under the some of the regulars. -- regulators. that matters for local financial markets. a lot of products are tied to shadow banking. the reason why chinese asset markets have been weak since february onwards was his big unwind of shadow banking. i think that has given the impression the underlying hasomy is much more than it -- has much more than it has. thanks, michael. with someaoul
optimism for us. we have the lululemon lemon is coming up. they appointed kevin mcdonald, formally of sephora. we will also dig into at&t's numbers and alexa commits for the recent quarter for the company forecast looking better than estimates. of course, time warner hanging over the company. we will handle that next. this is bloomberg. ♪
threat posed by russia to u.s. elections. one virginia democrat motioned to subpoena him during a hearing on election security and was backed by his democratic colleagues. >> we appreciate your agreement to hold a classified briefing, but we think the briefing, albeit helpful, needs to be accompanied by a public hearing. closed-door briefings are not a substitute for public testimony from the top federal official on how states were attacked by russia in 2016 and the current threats to our election security. in the meantime, president trump tweeted he is very concerned that russia would try to meddle in november's midterms to try to help november -- help immigrants win. it looks like north korea has dismantled key facilities at its main satellite launch site. it would be a step toward fulfilling a commitment made by kim jong-un at the summit with
president trump in june. north korea focused 38 -- a said korea focused website they are sorting to disassemble of some of the parts of the site. be at the white house tomorrow on trade. leaders do not see a trade crisis with the united states. --sident trump macie did macie the situation differently. jeff sessions repeated a chant during speech at high school summit today. members of the audience interrupted him with cries of lock her up. sessions repeated the phrase what.
global news, 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. news on johnng malone, the media mogul. -- retiringing as from the board of charter communications. he will be the director there. just a point of information. old and has built a number of different media companies and is seen as his specialty in maximizing tax benefits from those companies. he is retiring from the board to reduce his travel and focus on fewer or positions.
he is heavily invested in the company he says. it looks like jim meyer will be his replacement on the board there. continue with at&t with reporter results a few at&t, toplineving and bottom-line beating analyst estimates. an eps of $.91 also tops the 84 consensus -- $.84 consensus. is saying itenson was an exciting quarter for at&t as we completed the acquisition of time warner on june 15. for more, we have john butler as our senior telecoms analyst. that speaks to how they are looking ahead and not looking backwards in the quarter that ended. in addition to saying the time warner purchase closed, at&t says it is buying apt nexis and how does this fit in with their strategy? john: if you look forward as you said, this past quarter does not matter for at&t.
the most important thing for them right now is to build that digital ad business and to build a digital ad exchange. this really provides the foundation for building the exchange where buyers and sellers can come even outside of at&t and by time on say directv which is owned by at&t or other platforms. future is so important to at&t, why are the shares getting punished. -- punished? the forecast for them for the quarter and full-year looks to be higher than estimates. john: i think what is a little murky year is 15 days at time warner is in the numbers so it is tough for people to look at the quarter and back at out. we will not get those numbers until at&t produces financials required by the sec to do so within two months of closing the
deal. i've not seen the press release but i'm sure the numbers are out. joe: i know we are talking about a whole new company with time warner, but the core business having subscribers, phones, tv, and all that stuff to try to get more of them and reduce turn, how is that looking? john: from the numbers i see, it looks ok. we heard verizon this morning and they printed a very good wireless number. the promotional environment and wireless this year, as i look back comparing to last year is almost tame. joe: like you mean not pricing? is notes, there aggressive pricing on streaming services. you see a lot of deals on devices and those kinds of things. scarlet: john butler, thank you so much. at&t is lower in trading. this is bloomberg. ♪
scarlet: it is time for the bloomberg business flash. apple confirms some of its new macbook rope computers do not perform as advertised under heavy workloads. they unveiled a software fix and apologize. the 15 inch macbook pro could run up to 70% faster. for the first time in more than a century, madison square garden will have a noon alcohol at -- nonalcoholic beverage. terms of the new deal is not disclosed read -- disclosed. julie: the turkish lira is falling as the central bank despises -- surpasses expectations.
u.n. says israel and hamas were minutes away from another devastating confrontation in gaza on saturday. the violence was averted after diplomatic efforts got both sides to step back from the brink. one official told the security council he returned from gaza and in his words the situation is coming down although tensions remain quoting perilous. monetaryey's assistance from the united states far outpaces contributions from member states of the organization of islamic
operation. >> talk is cheap. no group of countries is more generous with their words than the palestinians' arab nations and other states. all of the words spoken in new york do not feed, close, or educate a single palestinian child. thethey do is get international community riled up. mark: the palestinians permanent representative told the council that the palestinians need protection from the israelis to prevent further assault from palestinian -- on palestinian civilians. joined by that australia foreign minister, pompeo said history will show the benefited best the world benefited from the russian meeting.
he is set to testify tomorrow. metal detectors are being installed at a florida high were shotre 17 people and killed in february. officials at marjory stoneman douglas high school are trying to determine the best way to get more than 3000 students each morning without creating long lines worried the former student, nikolas cruz, is behind bars facing 17 counts of first-degree murder. in congo areals confirming the end of the countries ebola outbreak. officials say there have been no new cases reported in the past six weeks. more than 50 people were diagnosed with it during the outbreak. that's during the night epidemic and the first time it spread to a major city. global news, 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg.
scarlet: let's get a recap of today's market action. a mostly higher day for u.s. stocks. nasdaq had little change, and the nasdaq 100 actually rose and closed at a record after alphabet reported better-than-expected results yesterday. right now, in after-hours trading, at&t shares are down even after the company reported better-than-expected profit and sales for the quarter ending and raised its outlook. julie: "what'd you miss?" the turkish central bank kept interest rates unchanged. raising questions about the independence from the president ideas, a lothodox of currencies fell runners bonds. inbring in the founder emerging markets research firm, he is joining us from london. thank you for staying late over there and joining us. when you look at the action
today, does it indeed confirm some of the worst fears of the market about the central bank intropy? -- >> he's not leaving the central bank, he is responsible for the policy. it is the first test of the central bank after announcing his promotion. -- is the jury failing to deliver its verdict? absolutely not. this was a fake from the turkish banks. not so much that they do not hike, but they did not send a clear message about where the country is headed and what their agenda is. they basically disregarded the fact that the market was price hiked and acted like it was a regular meeting. their language was shocking in the context of not technology and the need to send a clear
message after having 15% inflation and having seen emergency hikes already up until this point. they were much too complacent. it does not mean they cannot recalibrate. the key issue is, is the government interested in recalibrating. i would stress that it is wrong to say that this means erdogan suddenly taking over the central bank, he has been told -- evolved -- involved directly. we are never seen rate hikes in less the market is forcing rate hikes. that did not change, because before the ruling, the market was not punishing the lira. it was almost as if the test only can be shown once the lira is under severe pressure as it is now. joe: what will be the consequence for the economy if the central bank still doesn't show any indication that it once a hike rate? michael: the problem is, a lot
of turkish corporate have dollar debt. the consequences a weaker turkish lira. there is a lot of turkish lira withwing on the short side smaller companies. either way you lose. rates are 17.5%. they are not to low. the messaging is wrong. the fiscal stimulus is wrong. this is a central bank where they have never, ever communicated what the inflation expectation and hope is. they just want to turn the tide on inflation. as history shows and their language shows, once they do turn the tide, they will be biased to cutting again. that is not where they should be headed considering the whole they dug for themselves. saidet: president erdogan cheaper credit will lead to
slower inflation. walk us through how that works or how it works in his mind. michael: i can't explain it actually, so i won't try. one of the messages that the central bank -- erdogan has put his son-in-law in charge as the czar.ies are --economy it is a dangerous position for him to be in because turkey is not a country that is in a metal free scenario -- muddlefree scenario. with the starting point at 15% inflation, and the fact that we have just gone through five torturous years of political volatility because of erdogan wanting to achieve his single party -- his executive presidency to be fully empowered. he finally deliver that. it would be weird for the sake
of municipal elections, which is what everyone seems to be focusing on, that he continues to risk the country's economy in order to win some votes. wants to win ingres and is tumble in the eastern elections ancura and- istanbul in the eastern elections. market is not shooting too quick, but it is very skeptical. there's a lot of brand damage in turkey, but it would not take policy actions from this level, they are already having interest rates at 15% inflation, to push the market in the right direction and create a virtuous inflationary spiral. but, it will require political courage to upset voters. joe: short-term rates are raised
in turkey very high, investors are being compensated in your view for the risk that you take when you go into the country. will change your view? what would have to happen for you to say this is really going off of the rails. saying they'ret getting paid for the risk, there is a real rates there. if they restore confidence in where the country is heading, the enemy -- the economy is slowing down anyway. with the exception of one thing, currently weakness prevents further inflation. we've seen demand and physical -- fiscal stimulus. the key question is less and what the central bank does and more on what the fiscal policy is. assimilate,ues to turkey will have the mother of all crises. if it does not, it will be one of the best reforming bond markets over the next 18 months.
people used to say something changed, but the policy is signaling, one in him choosing his son-in-law, but also in changing central bank law. there were silly policy choices even if you didn't do them first off of the bat. now he has to recover some of this brand damage. it probably means central bank will have to hike. i will not say now we have had signaling that would say by the turkish lira and bond, but i would not say as well that we have such definitive signals that they are in a crisis. scarlet: michael harris, joining us from london, thank you so much for staying late. coming up, lawmakers are looking back to the lululemon deal.
speaking with a professor who has the 10 principles to make the concept work. joe: get involved in the conversation. send me a tweet. here's my handle and page on twitter. i will be talking about the federal jobs guarantee next and what you will want to know -- next and what you want to know, shoot me a message. this is bloomberg. ♪ s is bloomberg. ♪
"what'd you miss?" some democrats have a new pitch to win back working-class smokers. a government guaranteed employment. 75 years after fdr said "in the richest country on earth, no one should be denied the opportunity to earn a living. -- living." politicians like bernie sanders and alexander oconto's goat as
-- hugs and records cortez is a bracing the idea. cortez is- alexander embracing the idea. guarantee?al jobs >> it would address two issues. first, the press -- the problem of underemployment. people who are underpaid have precarious work hours and may have no benefits. it would also address any residual problems with unemployment that we have even in a. that's even in a period -- even where we would have pressure for increasing employment as a consequence of the business cycle. joe:joe: it is incredible we see more and more politicians embracing an idea that fdr himself would embrace this, as
many other people consider this radical. see debates. why would a jobs guarantee be a superior program in your opinion? >> i don't think it is a radical idea at all. we're a long tradition of trying to have direct forms of employment, particularly dating to the great depression when fdr in particular introduced the works progress administration corps.ilian conservation the idea behind a federal jobs guarantee, we make that policy universal and permanent. a strong historical precedent already in the united states. downturn, the idea is that the government becomes the employer of last resort. what are the types of jobs that can be expanded quickly to make sure people can work? inthe types of jobs we have mind are twofold, jobs that
would address the nation's physical infrastructure needs and human infrastructure needs. the physical infrastructure needs are associated with traditional kind of projects done through public works like the building of roads, buildings, highways. that supports the public need. wouldman infrastructure be supported by the provision of childcare and elder care through professionalized workforces that would be developed out of the federal job guarantee. these arecs say that jobs that require quite a bit of skill. they are not just jobs the average person can do if they lose their job in a depression. and, that it is better to give everyone a check and everyone can take a check, whereas to put people in the position of caring for the elderly, children, rebuilding our infrastructure is not something that we can ramp up easily. sandy: those of us that have
been advocating this including derrick hamilton as a faculty member at the news school, we've been advocating the development of an intricate training program. for individuals that participate in the project that is. the idea is that we do want valuable jobs to be performed, and we need to prepare people to do them. even if we talk about the physical infrastructure like people haveidges, to be trained how to do that. we should also train them to engage in elder care and child care. joe: so you better the jobs guarantee with a robust training program to build up skill? >> absolutely. joe: what about the complaint that to some extent this is a conservative idea and you are support you but you have to show you are working. this is something progressives have done before. sandy: we've developed a
statement about 10 fundamental principles that should apply to the provision of a federal job guarantee. one of the principles indicates that it should not be a workfare program. we do not compel people to work, we do not deny them other types of social support if they do not engage in work, and we do not set time limits on the. -- time -- under which limits on the period under which they can hold the job. joe: do you think the government is capable of administrating such a program? sandy: yes. just because of the president -- president said previously. joe: in terms of fighting inflation and buying power, how significant could this be in terms of making sure prices remain stable and aggregate demand is mandated? --dy: one of the commissions
one of the questions u.s. is about the universal income. it would be inflationary, however, the federal job guarantee would mitigate the degree of inflation because people are going to actually be engaged in the process of providing goods and services. joe: how long have you been personally interested in this and how surprised have you been in recent months to see politicians taking it seriously? sandy: i think i've been engaged in advocating this for at least a decade if not longer. certainly since the beginning of the great recession. that itlutely surprised is catching on, because for many years, people told me this is an idea that will not have any weighing power. joe: well, keep fighting. sandy, thank you very much for joining us. hopest, texas instruments a good earning report can overshadow management drama. it will discuss that next. this is bloomberg. ♪ ♪
julie: "what'd you miss?" second-quarterts earnings beat analyst estimates. it is welcome news for a company looking to move on from its ceo swap last week. more in a moment. let's bring in our bloomberg reporter nico grant. is betterst it seems from texas instruments. we have details to what the company is attributing that forecast to? nico: the company is saying seeing they are tremendous demand for the analog trips -- chips they make.
in particular, the company is saying in the automotive sector, they are seeing continued demand into the future. those the key thing analysts were concerned about. whether jumps -- trumps trade .ar would have an impact joe: part of the whole semiconductor story that has been going on for a while is that it is not a cyclical business like it was and there is this massive secular story where everything will have a chip in it. what you are saying is based on some of the comments on debt largely intact. nico: yes, for texas instruments in particular, it is more demonstrated. just because the world is moving in this digital direction. they make very simple analog
chips that make things work. it could be the chip and :00, a card, anything they make chips for. in a card, or a clock, anything they make chips for. more drama there any surrounding the ceo switch and will this come up in the conference call? nico: it is likely to come up in the conference call. thereason why is because company did not give a tremendous amount of detail on why exactly he was removed. it said he violated the company's conduct and his personal conduct had nothing to do with accounting material -- accounting or material. it says it is a scandal in the same area as brian from intel the last month. nico, we will be looking
for any update on that call. changes,of management there's a new ceo at lululemon after the former ceo was ousted because of some kind of unspecified misconduct. ceo, calvinhe new mcdonald, is running the business in the americas which is part of lvmh. mcdonald's is seen as an operator in an industry they say. and lvmh runs a tight ship that could be what is behind this news. scarlet: lululemon shares have been almost up 100%. they want to make sure they keep the momentum going. julie: i think they are trading near a record at these levels. scarlet: yes. up 1% after trading. joe: coming up, what you need to know for tomorrow's trading day. this is bloomberg. ♪ ♪
high. at&t reported better-than-expected second-quarter numbers, but the stock is off by 1%. julie: there is lack of clarity. course because the lack of time warner by. scarlet: facebook's second-quarter numbers are after the bell as well. joe: i will look at numbers for new home sales out at 10 a.m. julie: president trump will be meeting with the president of the european commission, highly anticipated. scarlet: that does it for "what'd you miss?" julie: "bloomberg technology" is up next. joe: have a great evening. this is bloomberg. ♪