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tv   Bloomberg Markets Americas  Bloomberg  February 7, 2019 1:30pm-2:00pm EST

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were he is expected to be confirmed. democrats have largely oppose the nomination, saying they want a stronger commitment from barr to fully release special counsel robert mueller's report. theresa may is in brussels where she met with european commissioner president jean-claude juncker. she is try to change the brexit deal she reached with the european union last year. she was the eu to change the most contentious part of the agreement, the irish border backstop. >> it's not going to be easy but crucially, president juncker and i have agreed that talks will start to find their way through this, to find a way to get this over the line and deliver on the concerns the parliament has so we get a majority in parliament. the president of the european parliament is morning of dire consequences if britain leaves the block without a exit deal. he spoke to reporters in
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brussels following talks today with prime minister may and the top eu brexit lawmaker. it was a very good meeting .ut we are very concerned we have reached an economic and humanitarian capital. this is the reality of a no deal. that should be a very dangerous solution. they must endorse a deal by march 29. they say lawmakers don't want to renegotiate the legally binding divorce agreement but stressed that while it was impossible to change the content of the agreement, there was a need for continued dialogue with the u.k. . a senior russian diplomat says another russian nuclear pact is in danger following the u.s. move to withdraw from a cold war era nuclear arms control treaty. the deputy russian foreign minister says that the u.s. refusal to negotiate an
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extension to the new start treaty signals washington's intention to let it expire in 2021. he warned that time is running out to save the fact, which was signed in 2010 by president obama and russian president dmitry medvedev. he says the u.s. has shown no residence or desire to engage in substantive talks on extending the packs which limits each countries to no more than 1550 deployed nuclear warheads and 700 deployed missiles and bombers. global news 24 hours a day, on-air, and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. shery: live from bloomberg world
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headquarters in new york, i'm shery ahn. amanda: live in toronto, i'm amanda lang. welcome to bloomberg markets. here are the top stories we are following from around the world. trade pessimism, u.s. stocks fall the most in two weeks as investors grow anxious that the trump administration will not reach a deal with china before a march deadline. lights, camera, action. us to talko joins about what is in store for the company in the year ahead. softbank sores. sendsggest buyback ever shares surging the most in a decade. we are halfway through the trading day. stocks have taken a turn for the worst. taylor riggs has more. taylor: down new the lows of the session on the s&p 500.
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300 companies in the index reporting. the top beating on line. 70% of companies beating on the bottom line. morning, a slew of earnings. the nasdaq by far the worst performer of the day. i want to go into the stoxx, smaller averages. stocks are up about 2%. nxp semiconductors gave the market what it was expecting, slower growth out of china. russell 2000, a stronger dollar but a weaker index. energy and consumer discretionary, one of the worst performers within the s&p. energy, this as oil has rolled back 3%. if you two dollars a barrel. -- $52 a barrel. come into my terminal, gtb go. we are turning negative for the
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week with the s&p 500, the yellow line on the right-hand side of the screen. posting its worst weekly loss since december. white, the dow, in blue the nasdaq, trying to hold onto weekly gains. we still have tomorrow to get through. when we talk about earnings, here are four i want to highlight. , we know that from coach and kate spade. another company cutting their full-year fiscal the you, talking about increasing volatile macro yo. twitter says they will stop reporting monthly average users and instead go to daily. this is what the market wanted but not enough to turn around sentiment. 11%,nce data systems off saying they are missing on some of their full-year estimates. finally, kellogg. talking about some staples.
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some good and bad. kellogg not getting it done, off 6%. they are saying that breakfast is slowing but they are looking at 4% growth. markets are not sure what to believe. amanda: thanks, taylor. another question people are asking, not just our markets in negative territory, but what about capitalism? run ansensus on how to modern economy seems to be losing stock. voters always looking for new ideas. economics editor peter coy compiled the ideas from all what iso try to mend broken in the u.s. economy, this is in the latest issue of bloomberg businessweek. it is fascinating because it feels like many of the rules that most of us grew up with are being challenged. this is a wonderful compilation a reminder of them. what drove you to put this together to remember our
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economics 101 and where we stand with it all? say two things, trump getting more protectionist than the republican party always was, seeming to pull the party toward him, and then alessandra kaczor cortez and some of the figures and the democratic party moving that party are to the left. in both cases, you see the consensus, the centrist consensus continuing to crumble and the voters seemingly open to new thinking, not necessarily better thinking that new thinking, some of these ideas have been around a long time, some recent. we decided to pull together a team of people from across bloomberg news, washington, new york, germany, coming together to write seven possible fixes for american capitalism. amanda: one of them is tech. shery: some of them may view them as evil.
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replacing humans. >> the person we highlighted was jeff bezos, the world's richest man. i watched a video of a speech he gave last fall where he said -- i do not taken literally at this but he said, he is not worried about overpopulation. he will love to have a trillion human beings. of course, there is not room for a trillion human beings on earth, you would have to populate the solar system. that is sort of the idea behind blue origin, his rocket out. you could have people in outer space, other planets. youou had more people, would have more geniuses among those people, more innovation, greater prosperity. that seems like kind of an extreme off-the-wall idea that it ties into a bigger idea, and that is that technology is good. it produces prosperity, gives us new things. back scenes, indoor plumbing,
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refrigeration, automobiles. these are all things that we are happy to have. we would not have them if we did not have technological progress. of things in this list that things should read. modern monetary theory, a sickly changing our minds about things. one thing that jumps out, tariff truthers. tariff are bad for economics, but do we understand them? >> that was shaun donovan who wrote that. he was picking up on the people speaking to president trump, saying tariffs can make the u.s. economy stronger. the funny thing about this, it is not a brand-new idea. over the course of american history, back to the founding of the republic, you have had people saying this. there are certain developing countries where it is its policy. that the u.s. is
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the guarantor of free trade around the world ever since , now not voicing the same things, could be traveling to people. shery: a great read, peter coy. thank you. staying on the theme of tariffs, another round of high-level trade talks between steven mnuchin and other top trade officials will be going to beijing next week looking to hammer out a trade deal before tariff increases on chinese goods ramp-up in march. for more let's welcome in pamela, from do not a nation's conference on trade and development. she comes to us from geneva. a study onleased u.s. tariffs on $250 billion of , portrayed by the trump administration as meant to protect u.s. jobs, in an economy that has been taken advantage of by china.
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tell us what you found, the effects of these tariffs? >> what we have found is there will be a significant evolutionary aspect, particularly if tariffs are escalated to 25%. if there is no agreement before march 1, the diversion away from trade with the u.s. will be significant. and it will not protect domestic firms. what will happen, we have already calculated the eu may gain up to 70 billion in terms of the trade diversion. canada willo, and gain over 20 billion each. interestingly, 27 billion gain equal to will also be about 6% of their entire exports. so it will be significant. that ishow much of quickly reversible, how much of the flows would change if we saw tariffs on certain products,
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off? is that possible to say? >> at this stage, the impact has not been a reversible in that 10% is not negligible but not harsh. not been, there have movements yet in terms of the relocation of investment by companies. they are still holding a watching brief. if it ratchets up to 25%, then we will find that a lot of the movement in the value chain will change, a lot of countries will lose significantly, particularly the east asian countries. they will lose up to 160 billion in terms of the supply-side issues. happen,ion, what will u.s. goods the subject to tariffs will be diverted.
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willll not be very good, not be productive for either the u.s. or china, or frankly, the rest of the world. shery: how about those countries tradelearly benefit from tensions, such as brazil, who is selling more soybeans to china? >> in a way, it is a double-edged sword. brazil has benefited, they are y are increasing their exports. but it could affect them in the long term, supplying a huge chinese market. will also pull away from their ability to produce livestock feed for their own competitiveness, for their own sectors. yes, it is good in the short term, but whether it will actually work for them in the long term is yet to be seen. amanda: one interest part of the analysis is who benefits if the
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trade is divergent. we are talking about a slowdown in europe. seems to be having an effect on markets. european firms could be a beneficiary of china-u.s. tariff s? >> precisely. the divergent will be most beneficial to european firms. over 70 billion is what we calculated. it will be in the areas of chemicals, vegetable products, equipment, machinery. frankly, the biggest one will be in machinery, almost 20 billion. of course, agriculture will be affected. the european countries will do well. what is more important is to look at the impact on the international trading system itself, however. even though some regions may benefit, in the long term, the can theon in tariffs
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two more prohibitive tariffs from other countries and then we are into a full-scale global tariff war. what is important is to see if we can strengthen the multilateral trading system again. amanda: great to have you with us. ahead, movie magic. we speak with imax ceo rich gelfond after this. this is bloomberg. ♪
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amanda: in your head for imax. the company may be bracing for another so bring period recorder but 2019 looks a little more promising with the release of
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more blockbusters in i'm ex-mma titles. we have ceo rich gelfond from los angeles. let's talk about how you smooth .ut the big bumps this is a period where your reporting did not have a star wars release. how do you explain to investors to look past that at what becoming? >> we always say we are not a quarter horse. we are in it for the long run and the year. as a matter of fact, we disclosed our box office for the fourth quarter and it was quite strong. you are right, it didn't live up to the year before because there was no star wars but aquaman was a huge success. many of the film did well in china. most analysts would say our quarter did better from a block off the point of view than they expected. this year it's a little bit of an embarrassment of riches because in the first quarter you have a lot of terrific films.
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king, thervel, lion next star wars in the fourth quarter. it is a really good year that is spread across. although sometimes it happens, i don't think this year will be one of those years. shery: to your point, china has been doing well. we have seen the pace of growth in chinese box office is slowing down. how do you plan to deal with that? it's a great time to ask that question because it is chinese new year the last few days. that accounts for a fairly significant portion of the years box office. for the first three days of the chinese new year we are up 20% from last year. last year we were up 75% over the year before. the market itself is kind of flat over chinese new year. again, for premium entertainment, a special experience, a way to see the movies, we are doing extremely
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well in china. you have deep business ties there. i'm curious for your cents on the ground of the chinese business community's view of partnerships with u.s. and american companies right now? i was in china about six weeks ago. the business people i've met are really anxious to reach some kind of compromise with the united states. ana matter of fact, they had interesting comment almost across the board. they were speaking different languages, not only chinese and english, but the different languages being they wanted to talk business language, which the u.s. was, and the government was more caught up in government policy language. in the business community, there's a lot of support. a lot of the sectors in china, you have been talking about, have been suffering, auto, steel, the bigger areas, but
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consumer discretionary, the business we are in, the movie business, premium entertainment, that has held up pretty well. it may be more of the export part of the economy that is suffering than the internal consumption part of the economy. shery: netflix has started to make noise in the movie business, we have seen its "bird box" success. any chance that you could be partnering with them for films? rich: one of the great things make greatis we films. as good a film as "roma those quote was, it was not a big event, a lot of the red carpet, press. with the academy awards coming up, we will see how that affects people's perceptions of the movies. we have talked to netflix many times about doing things with them because we are a great platform to do that. wantsw at least, netflix
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-- with theatrical and streaming. we are committed to working with our partners worldwide to preserve the windows where they exist today. laces like amazon are respecting the windows, places like apple have an announcement position. i would love to work with netflix but i think they need to show some flexibility on the windows. amanda: we have to leave it there, rich gelfond, thank you for your time. transformssoftbank 5.5 billion into $17 billion overnight. more on why the company is soaring on buyback news. this is bloomberg. ♪
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amanda: it is time for the bloomberg business flash. a look at some of the biggest stories in the news right now.
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woody allen suing amazon for a breach of contract. the filmmaker says the company studio unit backed out of a deal to finance and distribute his movies based on 25-year-old allegations in already knew when it entered into agreements with him. alan is seeking more than $60 million in damages. those changes twitter made to attract a wider audience don't appear to be taking hold. the social media platform give a lackluster first quarter sales forecast and reported a lukewarm user growth. we will talk to the cfo in a few minutes on bloomberg tv. a pretty fascinating read on share buybacks, we have been talking about that this week, including comments from lloyd blankfein. softbank is in line to show the market value of announcing a buyback. the stock is up 17 billion in market value overnight with the announcement of a buyback of a value that has a third of that.
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it is curious. shery: really trying to work on his argument that the softbank share price does not reflect their investment in value of the company. even in his earnings presentation he had this riddle. it really does not equal the market cap of nine julian yen. not a lot of logic but sometimes the market does what it wants to do. you can interact with a chart shown using g tv on the bloomberg. browse through our charts and you can save them. live from new york and toronto, this is bloomberg. ♪
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mark: i'm mark crumpton. british prime minister theresa may says it won't be easy but she's promising to deliver a brexit deal on time. following talks with eu leaders in brussels today, the prime
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anister pledged to achieve deal by the march 29 deadline. anliament warning -- economic and human catastrophe if they failed to finalize the brexit agreement. venezuelans in need of medical aid are begging president nicolas maduro to accept humanitarian aid. has refused to allow aid shipments into the country. the bridge inat tears saying his wife has advanced breast cancer and has been unable to get the treatment she needs in venezuela. expert hasn rights concluded that saudi arabia undermined turkey to investigate the death of jamal khashoggi. the report described


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