tv Whatd You Miss Bloomberg August 20, 2018 3:30pm-5:00pm EDT
tens of millions of dollars in foreign income. the defense did not call witnesses and says the prosecution did not meet its burden of proof. hisident trump kept up criticism of john brennan today, writing on twitter that he hopes that the former cia director would sue over his security clearance because, according to the present, that would give access to his records and email spirit over the weekend, he said he is considering taking legal action to try and prevent the present from stripping security clearances from other current and former officials. the outgoing u.n. human rights chief since the security council's five permanent members wield too much power. he says they are running too much of the business. >> when they cooperate, they move and when they don't, everything becomes stuck in the organization in general becomes so marginal to the resolution of
these sorts of perfect conflicts that we see to think that has to change. the organization -- great cost to the international community. year ends august 31 and he will be succeeded by former chilean president -- negotiators from the u.s. and mexico resume their talks on after this week. bloomberg has learned that the sides are close to resolving their district -- differences over agricultural products. on care making progress manufacturing. president trump wants a deal that would increase factory jobs in the u.s. 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 world headquarters in new york, i'm scarlet fu. joe: i'm joe weisenthal. scarlet: major indexes in the green with the s&p 500 up for his third straight session. joe: the question is what did you miss? >> a rocky road shows the electric carmaker climbed 14 straight day. it private. the rate hike might be more than what trump bargained for. taking issue with the fact that jay powell is not a chief money fed chairman. plunges deeper into crisis. one of the biggest currency valuations in history, adding to the chaos in the country. what it you miss? funding not secured. at least according to jpmorgan. analyst brinkman publishing a report slashing the price
target, causing the shares to spiral to below $300. it comes after the new york times ran a lengthy and emotional interview detailing elon musk's's grueling work schedule and the circumstances surrounding his recently to take tesla private. let's bring in david. walk us through what ryan is saying. he is not convinced a deal is likely to happen. a deal to take the company private. >> that has really been hurting tesla shares entire thing you have been talking about. everyone looks at the fact that he tweeted this off on the way to the airport, which says the whole thing really was not planned out. it appears the board was kind of on their heels and were not prepared to talk about it. it probably had not been a lot of negotiating going on. have the sound is looking at another electric which some people took to say maybe they were not all
that interested in tesla or interested inthat helping elon musk take the company private. you had it all together and you have this report seeing that the funding probably was not there or there is not enough evidence for analysts to recommend looking at this as a possible deal. he is now looking at the fundamentals of the company and does not actually have the greatest view because the target is lower and he has got it on the sale. he does not see a deal so we have to look from here on out i -- as a model to production ramp up, cash flow, same things that have been questions for the company going into this cycle of news. joe: to be clear, you are on this show for the multiple time past week. one thing i asked you is if funding is is -- is secured and you said no. you are way ahead of this. >> when he says funding secured, that should mean he has got
people who are actually buyout public shareholders, maybe a maybeign wealth fund, softbank or other private players or other big shareholders and the company have committed to go private was the transaction is underway. but if you look at it, in that explosive interview with the new york times, he said he sort of tweeted this out on the way to the airport and came away from a meeting with the saudi's thinking this was probably a deal that could be done. the sovereign wealth fund had not come out and said that either. to bedoes not appear anything concrete about it because even after that, he talked about hiring banks and how the board talks about hiring a law firm. all of us have it after the tweet. usually, all of this goes on before and he announces there is a deal on the table and you will have a firm proposal for shareholders to at least weigh in on her none of that happened. it was all kind of after-the-fact and almost seems whimsical in a way to a that is what a lot of investors and
analysts have really questioned whether it is really at all. joe: tell us about the other car startup that the saudi's might invest in? >> it is a report of the weekend ,hat motors tracking interest it does not have much except a really cool car that they showed at the auto show a little over a year ago. it exposed to get 240 miles, a big sedan and it looks neat, and the next tesla guy is actually the lead engineer for the model s, the chief technical officer for the company. with a credible team neat car but they do not have money or a factory and they're not building or selling anything. something the saudi's would invest in. in fairness to tesla, it is not really clear that the saudi's would invest only in this. they have got a lot of money, $250 billion.
bunchy could buy a whole of electric car companies if they wanted to and certainly could afford to invest in both of these. so we will see. but it is a company with the technology with a lot of work to do in terms of becoming a real company. >> far off in terms of competition compared to tesla. establish carmakers as well. we spoke with her off gerber earlier today to get his take on what he says is needed at tesla, the president or coo. listen to what he said. >> a think it became very urgent recently and i think the board in the past has really just relied on elon musk to make those calls. you know, sometimes, even very smart people do not realize how big a hole they are in and how much help they really need. thisind of hoping all of is the wake-up call for the board of directors of directors and elon musk on building in management that tesla will need
a $500 billion company one day. on to say that, in his dream, he would love it is elon musk and tim cook could maybe team up and tim cook could be the guy to help elon musk. it is that is far off but interesting that he brings it up. at one point, apple is trying to get something done with self driving cars and perhaps its own car. is there any movement on that or any news on that front? >> it has been everybody's favorite parlor game, who could tesla in a rescue financial sense, it would be a really good partner for them. apple comes up a lot because project titan, their car program, has gone quiet. would -- no one knows what is going on but it seems like they reduced staffing over there and at the same time, elon musk that use the funding and it seems look a good marriage. we do not know if there is any real meat on the bone but to ross's point, tesla probably
does need someone to help the company. looking for -- but they are looking for a talent, i look at that as, maybe manufacturing and engineering people. that has been the problem here. in order to get the result elon musk is talking about, that was the most important thing before the tweeted about going private and it still is now especially feebly jpmorgan, that they have just got to get cash flow positive and income coming in the door. production is what it is all about and this saga has gone down for a really long time. >> yes. david is joining us from detroit. thank you. coming up, graduation day for greece. as the company is gives its bailout, is this the chart -- start of a new chapter? this is bloomberg. ♪
joe: greece is about to efficiently exit its bailout package but not filled with optimism for the country's's future. exit of alow for the crash -- international economics and the german economic ministry. he joins us from washington. thank you for joining us. greece is officially out of its bailout. our conditions in place for actual sustainable growth? >> greece has an opportunity to .ry so, greece, as you know, has turned the corner on growth last year. leaving the program and much
better physical shape than it has been for decades and they have a significant cash offer of about 24 billion euros. to exit the able markets. what they are constrained by our two things. one is they have very limited scope for a fiscal stimulus of the economy. one condition was they essentially continue the policies of the last few years and indeed, they have to. a lot of debt still to pay down. , evenher main issue is though structurally the greek economy has improved, the program has not really succeeded in being transformational. the sense is that many greeks still miss trust their government and institutions. many have left and if you are likely to time.
-- to return. the long-term growth not all that great. the government will have to prove not only that it can keep on a reasonable fiscal path, but can also sustain reform. joe: the downturn in greece, basically, which is going on about nine years, almost a decade, is, by some measures, worse than the great depression. was this necessary and if not, who deserve most of the blame? >> i think the blame is about between greece and the policy is conducted before , completely unsustainable fiscal policy, you know, very poor institutions and lack of competition. and then, the wrong approach to salvaging the situation in 2010.
so while it is true that this is by some measures as big or bigger than the great depression, one must not forget that this comes at the end of a time of extremely rapid, unsustainably rapid growth during 2000 here and a lot of this collapsing growth is the unwinding of growth that could not have been sustained. was indeedt collapse unnecessary and the result of austerity. greatason, in turn, is a debt restructuring of 2012, which was necessary. it did not happen soon enough. vonnie: there has been debt restructuring that some argued but to go further. kris is left with 240 billion euros in official debt and when you add private debt, the government debt or an goes to more than 180% gdp.
depending on what projections you look at, it could go to eventually 100% down and write back up to reach 250% plus. the discussiono of genuine debt release it was that ultimately necessary? i see a spirit i'm the people who advocated genuine debt really. what greece has received from the official sector, as its gift for exiting the program, it is not enough. i think it is the bare minimum to give greece a chance. i think that the greek debt to gdp ratio will come down but will come down only if greece stays on track with the fiscal policies. there is also a level below which it is very difficult to see it coming down. gradually, greece substitute official sector debt for more expensive private-sector debt. it's interest will rise. prediction is yes, we will
probably see greece having a fiscal problem again in about a decade or so. a decade is a long time to make predictions over. then there is probably a range of possibilities for how to tackle the new problem, of which restructuring might be one. in that sense, the future is somewhat open. the crisis,ior to there was a view among some that the project was incomplete and would eventually need to be some sort of system for fiscal of that gotd a lot halted during the crisis. the demand that you can't move forward until everyone moves forward with the rules. we are already seeing fiscal tensions rise again -- rise again. we're seeing in italy with the new government and government bond yields pressing up at the highest level since the election, is there an appetite
for any momentum for a further restructured -- structural reforms so the next 10 there is a downturn, we are companies have a fiscal space to run the policy? year ago, ialf would have said the appetite. through the italian election and partly because europe views itself as being more self-reliant and having bigger problems of the national stage which cannot be solved unless it has more unity and unless the domestic albums, the eurozone problems, under control, there is a bit more hope. the main side was the german declaration right in front of the eu summit where in germany, france, in principle agreed to go further in the direction of the eurozone, possibly european
underemployment insurance. atse are the right steps but the same time, they got a lot of opposition from both sides. led by the netherlands, they also got a lot of criticism from the south for not in -- for not going far enough for not mentioning it all the issue of european deposit insurance. there's a little more now which has to do with the geopolitical settings, with what is happening in italy, and also with macron and mrs. merkel understands she needs to take it manage of the spirit whether it will go far enough, i am pessimistic. >> it has been assumed that the current prime minister will not run for reelection. the next governor will be elected by the 20 -- by 2019 i believe. how much can the claim to influence the economy when there
are so many restrictions on what they can do a special orderly inspections on economic measures? finger in ther wound. not very much. there will be an overwhelming push to say look, we will have short-term growth. frameworkpost program is predicated on curtailing greece's options for doing that. does not mean the next government cannot do much. it means they cannot really do much by way of a short-term boost. the big challenge for new government would be lowering the new tax and social costs and indirect labor costs that are quite massive increase. you can do something carefully
if you do it in dialogue with the creditors. the other big thing, and where the programs have not made so is the level playing field. had -- now understands they can no longer wait for them to help. with entrepreneurial spirit. there is some hope. >> thank you. what did you miss? nike trading at a record high. analysts upgraded it and nike is the stock of the hour. better than 3%. >> yes. the biggest mover in the dow today and if you think about it, it is at an all-time high.
writing this stock off a year or so ago, they have really made changes to inventory at susquehanna and as analysts have pointed out and they've made a lot of changes to the website which has riven a lot more customers back. joe: people were going to wear a this or something? >> they were teaming up with kanye west and air jordans. there was a sensitive not have that same cachet. they have updated the style. changes which helped to keep down the cost. >> thank you. we have got breaking news on tesla. this is according to the wall street journal, reporting tesla's cash fell to 1.6 million dollars to the first week of the third quarter. some asked tesla to extend payment terms. its cash position following for
business of distributing finished products to getting its products inside the home to allow the consumer to create the product. >> right. in making this move, a lot of people question what it means for coca-cola as well. the two have been in the two have been in a battle to figure out how to address the change in taste for sugary soda drinks moving toward water. youoca-cola made a move know, last week, having a stake in body armor. they are post -- both jogging -- the fastest growth in waters and energy drinks, to have a greater and greater exposure in those areas. >> yesterday to something we will continue to watch for. i'm sure there will be more moves ahead.
under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. stocks closing on section for
whatever the direction is, of hasidea pretty >> he past andhe idea of the now he is saying the same thing. >> facebook and twitter to regulate. -- self regulate. >> you have three groups now, utilities, check and consumer staples. obviously, this is not the broadest we have seen, but stocks have managed to hold on. but start with maggie.
action, a little bit of when looking at a headline. puttingthink people are tons of weight and for the most part expected to remain. we get jackson hole in the conversation. for monetary policy. aboutesident complained rate hikes. of course, then trading this week. included the pound. prime minister justin trudeau
says they are looking forward to in the coming weeks. lastly, they reported they were resolving their differences under nafta. what report would be complete without the turkish lira. the s&p and moody's downgraded their credit rating. -- as a member, -- thes less likely will see same that we have seen in the previous two weeks. >> let's look at commodities. a lot of action in the
commodities. .oday, more subdued gold finally getting buyers of overallome green, but much quieter. those are today's market minutes. fresh sessionat lows. of more on this, head shestment strategist and joins us. thank you for taking the time to speak with us. sounds like he is complaining rate hikes.
is a harbinger of more to come from the president? >> we think that is pretty unlikely. we think the president might make a statement that higher rates are not necessarily helpful, but certainly we would as the independence of the fed. clearly, you have an economy that is expanding. the u.s. economy growing over at 4%. that is very much the kind of environment where you expect rates to be rate hiked and one thing important to bear in mind
in the broader u.s. economy is the dollar has been strong. we don't expect that to have an impact on the two rate hikes that we are expecting, but as you go out to 2019, that could have an impact because it will regulations. >> when you see headlines criticizing the fed, did they because ity pause seems unlikely you would have and whether we are in for a new, more
centralized zero. -- europe. >> i think a more centralized europe is overstating things. we are nowhere near the situations we are seeing in other countries where you have a and on the teller if you think about the government. it is no wonder that. commentstreat these as . if we were to see something more definitive, then yes, that we a concern. do you expect the dollar to strengthen further from here? how much further strengthening do you anticipate? >> we do expect the dollar to
strengthen further. a number of different the pace of well as celebration. particularly, we're expected to see that versus the euro. we have the fed tightening ecb has takenthe steps towards easing their but don't expect to raise rates until probably q3 or maybe even q4 2019. secondly, what we have also seen is the u.s. economy is
strengthening at a much faster pace. that is often what currency markets will react to. at the same time, we have seen expanding, but not at the pace it was in 2017, so dollar to goct the further against european currencies. we really think they swedish krona will be under pressure because it is an open economy and it could be hurt. emerging markets, they've had a pretty rough ride and in general, we tend to think of them struggling.
i will point of a become compelling? >> we certainly agree. we are very cautious on emerging markets at present. from and a violation perspective, we think you may be more selective. are looking for atue, you are not looking what is going to happen over the next week or do the next month. you're looking at the next month. they have solid financial positions in those are the
metrics we think it would make sense to look at in determining where to gain that exposure. thank you so much. we have some more headlines from the reuters interview. he says he will criticize the fed if it keeps raising rates. he says i should be given some help by the fed. these are 10 comments by the resident who usually has no problem being forthright. usually, this is someone who does not hold back. coming up, third day is the charm. the same cannot be said for the
here with more is central banks george lake. making the pboc acquisitions. >> there is expectation there will be trade talks in the u.s. china. summer, it pays to keep the chinese currency more or less stable. number two is a lot of people in least in thet short-term. >> enough to achieve what? >> enough to make some short-term adjustment from tariffs, less of an actual impacts.
only 25% of $1 billion. this adjustment changes. triggeruld help outflows. offshoreoking at the in a cap to as low as 6.9%. measureses to say it by a basket of currencies. we have heard that line before. anyone in china look at the dollar-yen rate? >> people on the street will probably be the most exporters.
>> and what about the government question mark >> if it goes above seven. idea that the government is strengthening the u.n., can you read into the optimism they ?ave before key political events, , theu recall in early 2017 a bite strengthen quite and it depends on the dollar. >> david will be on the u.s. side discussing trade. here.a new name
to figure out what anyone's position is. theingly, he is lower on totem pole. what does china hope to get out of the meetings this week? if you recall, raising has been near to washington. adjust ourto expectations accordingly. thank you. coming up, outgunned. some american brands could be the ones to lose. this is bloomberg.
we can put tariffs on more things. what china has shown in the past is making use the power of the fact that there market is the big market. all sorts ofey did andgs, shutting down stores to south, group travel korea, their state media when after high-end they. when you look at nike, and donald starbucks, the big global have majory all business there. having my gimmicks about 25% of their goods in china.
>> there could be an article that says they are bad for you and you should not wear jordan's companies for whom growth is crucial. >> exactly. there.e the media over in the case of south korea -- termdon't even use the trade war in the media. starbucks, may have made a lot of pr announcements in sort of partnering with their employees. matter, companies
that are big employers. market. big growth does that make them harder that they could be hurting the jobs of a lot of people? >> china might not do that brands a lot the major have adventures -- ventures with chinese own partners. is all imagine tomorrow of a sudden there was this huge attack on apple all of a sudden thation mark if you did across the board, it could get
ugly quickly. >> it is not met some of these companies higher in china, mcdonald's has told him to a group that includes state that entities. you cannot actually target mcdonald's without hurting your own company. >> again, if china were to do , starbucks, for example, there are a lot of chains in china. profile bigger risk that not only depends on china for growth, also makes a lot of goods. starbucks, a lot of exposure
because they have joint ventures. thef course, you look at local papers in the headlines focused. about how, they talk the tariffs kick in. it in greenville with tv. worth watching, especially as we get into the november midterms. >> all local races going to be issued. next, the boulevard gets a makeover. how venezuelans are this.ng next
>> pope francis has issued a letter to around the world dealing with sexual abuse and cover up. he has cemented accountability. to letter comes in response last week's scathing report -- the tracks of the whole, this is a wake of all for those with physicians and responsibilities in the church the up also for all of faithful. the hope is telling them and
asking for their help to try to fight this evil. >> meantime, pennsylvania's top law enforcement officials says will seize their denials are it staff today held moment of silence for former secretary-general from sub-saharan africa. matt called them a guiding force thatood and they tweeted warm should never be -- warmth for -- warmth should never be mistaken for good.
the plan would let states relaxed rules for power plants that need upgrades. in michigan, a judge has ordered the states health director to stand trial for involuntary manslaughter in the deaths of two men. he is accused of failing to issued a timely warning about the outbreak. global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. >> one of the biggest currency a supersized made
95% thenging by currencies are you will now be tied to the petra. lots of moving parts, a cryptocurrency, devaluation and , alla reverse stock split these moves happening at once. the is the effect on streets come out in the public from such a drastic change? today is a national day and on friday. it is very slow. so it feelsose,
some new bills from them. it is a work, but very slow. >> thanks for giving us some color from the ground there. therrow, we're joined by chief investment officer. have you hereo and you are also a bondholder as well. i wanted to get your take on this. on the one hand, you could say not really because things are going so that. it this surprising? , they just put into place the market and it was
legal to talk about the lack market. it is more or less equivalent. trying different things. i am a numbers guy. if you look at unable to provide utilities, venezuela as i know is a failed state. blacks acknowledging the market and pretending it is something else, is there possibly any sign? thehey are admitting exchange rate we had before, we
are going to tie currency to cryptocurrency. admitting it, but they did not follow through yet. the support of the military, right? >> that is the common knowledge, but the upper echelon is benefited. who average come in person , ifa hard time getting food the power grid is working, she is actually -- the average person i would say is protected by the upper echelon. it is hard to believe. i think the thought is so bad
that we have to be closer to an .n game when we have before the news flow is unbelievably bad. >> not just oil reserves, hurricanetside the belt. the mismanagement of all the resources. venezuela has been blessed with natural resources. >> when it comes to have a government can use that, do we see it there?
reputation for being a straight talker, he has been. >> i think ramping up was the phrase he used before. he is building a case and you will see it one appearance at a time as he gets madder and madder. we have seen this once trump but onto an issue, he won't ago, so i can almost guarantee you will be more criticism of jay powell. rhetoric, ishe there a reason to think that he will be hawkish? see. hard to
lot.ot seeing a complete the outcome of -- and for good reason. it is strong in the economy is amazingly strong and inflation remains low. year over year. the goal is to percent. -- 2%. >> is that going to be the 8:00 a.m. friday speech? we don't really have any idea what he is going to be talking about, but in your view, are there questions you would hope to get answered? think the fed chair is
always going to want to avoid being seen as just someone playing with the market. people will be sifting through a rate hike in december and further deductions on the balance sheet. we talk about trump, markets have an of session on rate levels and balance sheet. it is understandable. the third,talk about it used to be china, china is not so much a concern right now and that it is deleveraging in a measured way. crises and a lot of other emerging markets, whether it is turkey, venezuela, argentina. to what extent does that factor
into what the fed's consider? ago, hel not too long said our mandate is to focus on the u.s. economy. that is correct, except the rest of the world affects the u.s. economy, so that gives him a good reason to carry -- care about turkey, argentina. >> no reason to care about the rest of the world until september? >> fully and then suddenly is the way to describe it. thank you. coming up next, has $.10 earnings failure change the outlook for chinese text? this is bloomberg.
headlines some more about president trump and has interview with reuters. he says there are no concessions with turkey, so this goes back to the idea that the u.s. had written to put tariffs on turkey because of this american pastor that is being held by the government. much --not seeing a much of a reaction on the dollar lira because the government has made changes for the way it is funded. tencent disappointing second-quarter as policy on chinese tech titans. shery ahn today why he is optimistic. lot of big players
nce anda like alibaba, te then you have thesent regulatory aspectsooking at key such as tencent gaming business, but these effects are regarding small parts. , they arebig players big conglomerates so they have a lot of different pieces. alibaba's cloud service is doing well. you have to look at the different pieces and i think generally in those areas where companies like alibaba are doing well, the same with tencent. regulators froze the gaming licenses and then it vomited.
of otherany risk markets? was think it looks like it heavily involving some regulatory restructuring in china, some of the key organizations, we are seeing have been undergoing restructuring. again, i think this is part of a broader look at some of the more -- services like gaming. is looking at artificial intelligence applications, i think the longer-term outlook is, thing. i think it is a temporary setback. >> isn't surprising at all that these regulatory changes that have the effect are coming at a time when the government must
already be aware of the declining stock market on people and on confidence? mike ahold delhaize on that while that is going on -- might they hold on while that is going on? arees, but i think there other headwinds such as the u.s.-china relationship. also affecting the general outlook in the tech sector. there is a lot of uncertainty about where things are going and so, i think there are other factors that might the yet play, but i think it is a short-term .hing that will improve chinese authorities are looking at this closely. there are the other factors out there, particularly the u.s.
china trade. >> the chinese economy not as strong as it has been previously. what effect does that have on companies? i think the trade conflict has come at a time and there are broader concerns for long time, things like that and other issues that have been percolating along and then i think the trade conflict has heightened some of the underlying problems. and generally, atmosphere is very complicated and i think this is contributing to the overall sense of uncertainty and where companies are headed, so it is accommodation of factors. a real building up of concerns in china and the
u.s.-china relationship for investors. >> including chinese investors in the u.s. becoming much more careful about what type of money flows into the u.s. given a reprieve. how will this tightening of investment from china affect the chinese and their tech sector? >> what you're talking about here is new legislation and that new legislation will expand the areas that the committee can review, particularly chinese investments in the u.s. was head of geo technology speaking with shery ahn. >> coming up, what you need to know to gear up for tomorrow's trading day. what'd you miss.
remarks think he is not throw with the rate hike. >> it should make for an interesting week at jackson hole. >> it is almost like he is doubling down. barnier andichel dominic rob hold discussions in brussels. >> and cole reports their second-quarter earnings tomorrow. have a great evening. this is bloomberg. ♪
emily: i'm emily chang in san francisco, and this is "bloomberg technology." there are doubts brewing about tesla's ability to secure funding to go private. can elon musk take the deal across the finish line? has apple peaked? one analyst has slapped the company with a sell rating, warning 2019 could be disappointing. twitter, at a political crossroads. is the social media platform worried about angering co