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tv   Bloomberg Markets Americas  Bloomberg  February 15, 2019 1:30pm-3:30pm EST

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comes one day after he agreed to sign legislation providing about $1.4 billion for the controversial wall. the president told reporters today the action he is taking is in keeping with his campaign slogan, make america great again. >> if you are going to have drugs pouring across the border, you are going to have human traffickers form across the border in areas where we have no protection, in areas where we --'t have a barrier, then very hard to make america great again. mark: the president said he expects to be sued but also expects the supreme court to eventually rule on the matter. he added "happily will win, i think." in a joint statement, nancy pelosi and chuck schumer called the president house move "an unlawful declaration over a crisis that does not exist." they added the declaration would shred the constitution. vice president pence continued
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his visit to europe today with a stop in auschwitz. it was the vice president's first visit to the camp where azis murdered more than million people during world war ii, most of them jews. they were joined by the polish president and first lady. as expected, the spanish prime minister called a snap election. the move comes after parliament vetoed his 2019 budget proposal earlier this week. the vote expose the minority government's inability to paschi legislation. spain will now hold its third election in four years. sanchez says the next vote will be held april 28. 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.
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>> live from new york, i'm vonnie quinn. >> live in toronto, i'm jon erlichman david welcome to "bloomberg markets." >> here are our top stories. trade progress. president trump reiterates he may extend the terror truth with china and takes a potential deal with opposition lawmakers. fourth-quarter results released minutes ago from uber show persistent losses, slowing revenue growth. what does it mean for a public valuation? newest motorcycle. we speak to the north american ceo who talks about the , the fastest in its history. ast is all to come, as well
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an interview with the pepsi cfo. quick check on the major averages. the dow jones close to its highs of the day. s&p 500 also bouncing back. know john, which i will drill into, up .3%. crude oil saleh major rally. looks like there are more output cuts impacting the market. $55.23 today. jon: the nasdaq continuing its recent run. we have seen one of the best mix of performance dating back to 2016. when you look at the charts, that is pretty impressive considering there have been plenty of healthy rallies for the index over the last decade as we see a longer-term bull market run. we have seen a huge move higher in those technology stocks that were beaten up at the tail end of 2018. a couple examples would be netflix and facebook, which were
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hit hard late last year and have had double-digit returns so far in 2019. vonnie: always fascinating to watch those growth stocks. i wanted to mention more on trade. even though we got some positive news from the president earlier, we have been getting some conflicting statements this week. statement released by both sides. the u.s. statement and the chinese statement. the differences are pretty interesting. in the u.s. statement, no mention of a consensus between the parties. on the chinese side, both sides reached content is an on major issues. the other thing i wanted to point out in terms of differences, the two sides also discussed china purchases of u.s. goods and services with the aim of reducing america's large and persistent bilateral trade deficit with china. in the chinese statement, no mention of chinese purchases. earlier today -- obviously, we have heard
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from the president on these issues. we will play a little bit of what the president had to say on these issues of trade. well.ng extremely who knows what that means. it only matters if it gets done. we are very much working very closely with china and president xi, who i respect a lot. there is a possibility i will extend the date. if i do that, if i see we are close to a deal, or the deal is going in the right direction, i would do that at the same tariff s we are charging now. vonnie: some breaking news now, a high court will decide whether the senses can ask about citizenship. a persistent question that is now going to a higher court. a high court will decide whether the senses can ask about citizenship. the companyber,
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released its fourth quarter financial results showing and persistent losses, this as they were preparing for a public offering this year. joining us to discuss is eric newcomer. a $120 billion figure being thrown around. does this put that into question? >> it is a big question mark. to $76s raised closer billion. how much investors will value this company is undecided. the fact that uber keeps losing money. 1.8 billion in 2018 lost on an adjusted basis. it has been challenging to have those persistent losses while revenue growth is slowing. the things you highlight in your story which i think is important is as this company has scaled and grown around the world, when they are working with new drivers, they think about fees. in some markets because of the competition, the fees they are taking from those drivers are
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lower. can you elaborate? eric: this is one of the problems that could end up being a good thing. their gross of bookings, what goes from bookings to revenue, has been worsening. drivers, and that is due to competition, especially in places like latin america. even the fight in the u.s. with lyft has been difficult. uber believes in the long term, as some of the venture capital competitors go away, have to behave more rationally, margins will improve, but they have certainly gone in the wrong direction recently. vonnie: obviously, these results were out only a few minutes, but have you had a chance to parse statements about what leadership will do to stem the losses and make this a viable competitor? uber's ceo has been on the job more than 17 months. people thought that he would address losses, but really what
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has happened is he is focused on trying to maintain growth, to the extent that possible. it has been a costly thing to do. growth he has chosen over losses, and that has been the strategic choice they are making ahead of this ipo. vonnie: it has worked for other companies, amazon. eric: amazon has occasionally shown, they could take a profit when they wanted, which reassured the markets that there was a profit to be had. what is interesting is when we see in s1, the extent we can break out ridesharing as its own business and see how that stands on its own two feet, even as uber invest aggressively into eats, scooters, freight. vonnie: thank you for covering those results. four wheels to two,
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ducati is opening up its first flagship dealership in canada, as well as a of ultrafast bikes. for more, but will come ducati north american ceo jason chinnock. we were just talking about the growth drivers that a businesslike uber. you have this new lineup and what is driving your growth? >> our growth is driven through diversification of our product. ducati is known as a sport motorcycle. you saw in the video, the race heritage we have inspires our product line. people want to be a part of that but we need product that allows access to the brand from an entry level as well. jon: your own story is fascinating to me. you are an aspiring musician who also have this passion for bikes and i went into the industry, and have obviously done quite well. what is it that the passionate bike, whether a fan or owner, wants from a new vehicle these days? >> they want to make sure it delivers the experience. especially as we see cars
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becoming more automated, technology taking away a little bit of the driver experience. with motorcycles, you want that connection where it is analog, visceral. you have that emotional connection with the product but it also lives outside of the experience running the motorcycle itself. jon: for the last four years, ducati has sold more than 50,000 motorcycles each year. are you looking to up those numbers with each year? absolutely. for north america this year, between what we see in opportunities in canada and the u.s., and growth opportunities are coming from things that we are doing with network development. improving the level of the quality of the network we have with the intention of not making more appointments, but a higher-quality appointment that allows for a higher volume of sales per outlet. technology, not just connecting or learning about what is happening with the bikes, but learning about the customer trends. jason: that's right. what we see from the customer is
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they want that higher level of experience. it is not just them purchasing a product but purchasing and experience. that dealer network is a critical component of it. jon: we were talking about the u.s. and china and we have inked about tariffs a lot the past 12 months. how does that impact a businesslike yours? jason: thankfully, we have not had any affect in terms of tariffs. it has worked quite well for us in terms of profitability. the exchange rate has been favorable in comparison to the euro. jon: there are so many factors to think about with consumers, watching the high u.s. dollar, what that means. also just the health of the overall economy. with some worried about where the overall economic strength will be a couple years from now in north america, how are you feeling about the business? what are you hearing from your consumers? inon: generally motorcycling, people are buying a more premium product. the mid-level product doesn't
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have the same weight as it did in the past. those that are motorcycling are looking for more, something that delivers an ultimate experience, not only from the product but outside as well. when that middle section of motorcycling has somewhat dissipated and those in the more premium offerings are actually reaping the benefits of it. ,on: when we talk about uber amazon getting to self driving, all of these players pushing into self driving, what does that mean in a world like yours? doug: great question. jon: thankfully, we are not in the transportation business. that: this is a misnomer we are a vehicle. we are more a entertainment business. we are a rational purchase, what people choose do with their discretion on income and time. it is entertainment, what you want to do with fun. jon: when you look at his new lineup and you are at the auto show taking place in toronto, what is the key messaging around
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products this year? jason: technology is not only making us safer, more comfortable, but we also have a more accessible brand that allow people to enter into the bike with a low price, small displacement, all the way up to the top-of-the-line technology. jon: one of the few ceos that wears a leather jacket instead of the suit. i understand with ducati. jason chinnock, the north american ceo of duke body. vonnie: always great listening to you talk. my interview with the pepsico cfo is coming up. stay tuned. this is bloomberg. ♪
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jon: this is "bloomberg
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markets." i'm jon erlichman. vonnie: i'm vonnie quinn. shares of 3% after earnings. the company reassuring investors with strong sales growth and plans for $8 billion in payouts. i spoke with the cfo hugh johnston. we feel good about the quarter totally. most of our businesses are performing extremely well. whichamerican beverage, you mentioned, continues to show sequential improvement. the reason we are improving is we have been investing back into the business. back to the end of 2017, through 2018, we have increased our advertising behind our big brands, added selling capacity to our organization. the businesses are responding to that. as we went through and started to plan 2019, we were seeing good returns on the investments we made and decided to increase the level of investment the height talking to the consumer,
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making sure we service our customers. as a result, we expect to see the business continue to do very well. vonnie: organic growth 4%, return to earnings growth but not until 2020. where does that growth come from, what units, snacks, sugary drinks, bubbly? broad based.uite our snack business is performing very well, our beverage business is growing. certainly the new and innovative products we have launched like bubbly, gatorade zero are doing terrifically well. in addition to that, our core trademarks, mountain dew, gatorade, pepsi, are all performing well. pepsi is actually back in growth, something we have not seen it a few years. on the snack food side of the business, lays, tostitos, doritos all growing well. that is what gives us the confidence that the actions we are taking are actually going to
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deliver the results that we intend them to. vonnie: compared to competitors, you are more exposed to input cost inflations. coca-cola having re-franchised a lot. what are you thinking about doing to combat that input cost inflation? might you change strategy, with a new ceo think about another strategy? no, particularly related to north american beverage, we have taken refranchised off the table. we think the model we have is a better model for serving consumers and serving customers. as a result, we are sticking with it. regarding input cost, input costs have become a little more inflationary, but frankly, we have taken pricing and we have driven productivity to cover that. we think we can deliver a good financial algorithm with the business as it is, and compete effectively. vonnie: what about aluminum costs? this is an issue for coke as
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well, changed packaging. how are you experiencing the fluctuations in aluminum cost? is the trade war impacting your decisions? hugh: no, i would not say it is. inhave seen some inflation the alumina markets but the way we operate on commodities, we tend to buy forward about nine months or so. we at least have certainty in the cost that we will receive. then we can take pricing in the marketplace that is consistent with that cost inflation. it is something that we have been managing effectively for the last seven or eight years. i expect we will continue to do it as we have. vonnie: also planning to return about $8 billion to shareholders, increased dividends, buybacks. i want to ask about cbd. anticipate it will be an ingredient in the industry as soon as the fda gives approval. are you looking at potential cvd ingredients? on any ofn't comment
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our specific innovation plans, but as of right now, that is not a part of our portfolio. this buybackly, and increased dividend, is this the best way to use the $8 billion, may it be better be put to use to or something else? are increasing by over a billion dollars in 2019. our priority is always we need to do first what it takes to compete in the marketplace. the guidance we have issued is reported above that. at the same time, it's important for us to return capital to our shareholders. that is how they return -- earn a return on their investment. the market seems to be appreciating it today. 3%.ie: shares up about that was my interview with pepsico cfo hugh johnston. coming up, we will take a look at how ray dalio, one of
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the best laid hedge fund managers, performed over the past year. how much did they add to their fortunes? that is next. this is bloomberg. ♪
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jon: this is "bloomberg markets." i'm jon erlichman. vonnie: i'm vonnie quinn. it is time for our latest bloomberg business flash. a look at the biggest stories in the news right now. carolyn maloney says her constituents are not pleased with the loss of amazon's hq to. she told bloomberg the last political backlash directed at the retailer cost the city a chance to diversify its economy. >> if you did not like the tax rebate, you could start negotiating to try to change it instead of just saying no, get out of here, try to work to make whatever the objection is better. obviously we would have had to
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modernize and upgrade our transit system, but that could've been a benefit for the entire region. vonnie: amazon has said it planned to bring 25,000 high-paying jobs to new york over 10 years in exchange for roughly $3 billion in tax breaks and subsidies. you can hear more of that interview in the next hour. a shakeup at the top of fedex. president and ceo has relied after joining the company's board. he will retire at the end of the month. a regulatory filing says the decision is unrelated to any disagreement with the company on any matter related to operations, policies, or practices. the head of wells fargo could be a one-man show on capitol hill. the wall street journal reporting ceos are expected to testify alone march 12 before the house financial services committee. the bank faces scrutiny over consumer abuse scandals. he will then testify again in april along with seven other
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large u.s. banks. that is your latest bloomberg business flash. another story we are tracking, it appears to be at the top of the food chain, especially if you are in the hedge fund business. bloomberg is tracking the performance of some of the hedge fund all-stars when it comes to what they took home in 2018. 7.7 billion reason to be happy if you are on the top, the amount of money made by the top 10 hedge fund titans. you are looking at the top three, james simons, it ray dalio, ken griffin. between them, $3.5 billion plus. take it home. vonnie: isn't it interesting? usually the same names that appear on the list, but definitely worth going into the story and reading it. plenty of others there as well. also plenty of items that they tend to like to buy with the
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money that they make. a $200mple, ken griffin, million jackson pollock, $300 million to koning, and a $120 million london mansion. recently, his most recent purchases. what do you do if you have it? spend it, right? jon: the power of the 2/20 fees. vonnie: we will have to wait a little while. bloomberg users, interact with the chart using g tv . you can see features, and even future charts for future reference. this is bloomberg. ♪ berg. ♪ this isn't just any moving day.
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>> the u.s. is scheduled to raise import taxes on $200 worth of chinese goods on march 2 if the world's two biggest economies can't resolve their differences. the new york democratic ocasio cortrespond says she's planning a joint fellow democrat castro. lawmakers hope to block any move to he president reappropriate federal funds for use on a border wall with mexico. supreme court will decide can er the 2020 census include a question about citizenship.
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it could affect the distribution of billions in federal dollars. the justices have agreed to a lower court ruling that's so far blocked the trump administration from adding the question to the census for the first time since 1950. supreme court justice ginsburg is back at work. the court says the 85-year-old returned to the building today for the first time since undergoing surgery for lung december. justice ginsberg missed six days of arguments and three private recuperated.s she the first time she was absent 1993.joining the bench in lobal news 24 hours a day on air. on twitter, powered by more than journalists and analysts countries.n 20 this is bloomberg.
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york, s 2:00 p.m. in new 7:00 p.m. in london. this is "bloomberg markets - close. development.rade talks on both sides of the race to avert a tariff increase on march 1. meanwhile, trump sends up a fight to build his border wall and hedge-fund billionaire. out which money managers when most r for ttunes of the industry struggled. all of that coming up. check on the markets on the last day before a three day weekend. we have a rally. six days for the s&p 500 at a 10-week high. a combination of different factors. better data on the consumer, positive developments on talks. pick.your >> it's seems to be a rally to day weekend.
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meanwhile, financials are clear out. words coming from the element. >> he's liking financials and giving a boost to the sector. we also saw banks lead the gains europe. >> europe, we saw really on a since saw the best week november for the european indices. maker, sumer products sharpie pens -- > how can sharpie pens be lower. >> down a much as 20% right now. in the middle of the turnaround, here will probably be more divest. coming ment. it will probably finish up higher even as its weaker by bit right now. >> let's take a deeper dive into action. we'll start with you, what are you watching? look at king a closer the s&p 500 after it hit a 10-week high. sector in green.
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load by healthcare and energy well. really we've also spoken a lot about s&p weekend, about the 500500 breaching the 200 day moving average. hat happened earlier this week for the first time since december. this chart shows the s&p 500 versus the 50 day moving average. you can see the blue line, the top of the s&p 500, lounging bove that 50-day moving average. if you look at the bottom of the screen. that shows the percentage above or below. currently above the 50 day moving average by some 5.7%. almost a most in year. abdi game? >> let's bring the nasdaq into conversation with the s&p 500 because that index is 7% moving average but nevertheless, since august 500.l lagging the s&p the reason this stands out, lots of talk that the nasdaq is up a than the s&p 500. .4 of 5% relative. of 1%.
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same stocks lagging but you can see all the way through last inr's volatility, the nasdaq yellow. underperforming the s&p 500, from that last high for the nasdaq. the nasdaq is still down about 8%. about 5%.0 down just considering that the companies omprising the nasdaq are growthier, some with hydrateta profiles this could potentially worrisome for the bulls considering the composition is not what it's been over the last couple of years especially since the performance has to do with the -- oil prices continue higher after there is more on the activism coming into the market opec nations will make good on supply cuts. pledgerabia made another earlier this week that it would also make good on that opec deal. basis we're seeing crude ise about 2%, back up to its highest level since november and on a weekly basis up 6%, the january.ce early
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i should point out both brands, wti up this t, year. there is some concern when you u.s. side and rising inventories. keep in mind, data earlier this the inventories of crude oil here in the u.s. rose to 3.63 million barrels in the week, and just an hour ago we learned from data drilling rigs actually increased again for the third time in four weeks, back up to 857. just hi of the 888 mark which was set back in november which higher.1/2-year caroline? >> we thank you. meanwhile u.s. stocks ending the week on a positive note. in fact, sectors, every single industry in the green on the s&p 500. cio at state the street global advisers. china and the world wold goes into
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into ole world goes ecstasy. >> looking at market sentiment t's important to know when to get into cheap stocks that are high quality. we've been looking at how entiment has changed over the last six months because it's ban stark contrast between the high expensive areas of the last year market of and shifted to more defensive names. i'm not just talking about price think in theause i short term would you have the impression that the short term defensesement would be are out of favor but if you look a a composite way, sort of mull dimensional view of looking at market sentiments, earnings forecasts andales how they are changing, if you look at hedge-fund positioning, look through ou the supply chain as well we see defensive names are carrying sentiment.t of public >> you mentioned cheap stocks that are high quality. do financials sit in that camp?
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i ask because warren buffet has oosted his stake in j.p. morgan, banc of america, along with some regional banks in the quarter. >> i would agree that there is a he quality end value. sentiment is pretty poor around those names that. has some macroeyewitnesss and t's also some political influences that you need to really see. sentiment turn before you want to get in unless you're a very long investor in which ase the timing may not be so important. >> we also have healthcare which usually seen as a more defensive area and this is an area that you like. >> we do. sector.the healthcare it's been a big staple in our portfolio for a long type. attributes lly nice of all the things we liking to together. so some defensive attributes, exposure to a , circular growth theme and you an find some names that are pretty reasonably valued. >> talk a little bit about how consumer.he
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you're positive on food reeling but not so positive on food, products.and household i ask because we've gotten some conflicting data on retail sales. report showed a big drop that many weren't expecting but are tearing while the consumer confidence numbers today seem to show everything is okay. >> yeah. macropicture he says but if we look at where we're seeing earnings forecast retailing area is one of them. also, restaurants. not all of them definitively but restaurant sector is up. that's where you've seen the a lot of theoff of earnings forecast in the current earnings season outlook. starting to decline but they are still focusing on retail and the restaurants, they okay.oking >> i know there is an art to which telltale should people be looking at. when is the go on this's
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you want to understand where you've got opportunities? >> certain things you can measure. that's what we hear about. what can we measure? that's what we have most in.fidence we're interested in indicators that can help us judge companies. from simple multiples to being creative about how you make adjustments balance sheet. r and d expenditures, research development. unfortunately, if it was easy everybody would be able to do it. there is a lot of complexity in how you use different metrics picturestries and get a of where real earnings growth is likely to be seen and real multidimensions and what's truly undervalued or just junk. real re are you expecting earnings? this is what everyone thinks under pressure. challenging. we may be in the case looking bunch. best in a bad that's why i think defense characteristics are probably something you want to hold on to. there any different
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characteristics in the energy sector? >> it's one of the most volatile whole economy. so it's very difficult to think about being defensive. could have some relative ed positions to other things in the portfolio so i would say sometimes odd can have a place in a portfolio as long as they are combined with other positions that are going to do we will different market environments. >> i'm thinking midstream operators, for instance, which much with oil prices. >> yes. exactly. f there is plenty of cash flow being generated that's a good sign. diversification, how much are your telltale signs telling you that the u.s. will outperformer once again? we saw it in the first half of 2018 clear and true, and then it dwindled as we saw the massive sell-off in december. being all key trade about america as we were told earlier in the week? likely to we're not
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see the u.s. outperform the market as we've seen in recent years. basically because they are coming at a much more elevated evaluation position and risks relative to the rest of the world are rising. >> all right. out.l see how that plays ciio of active equities. thank you so much. quick programming note that we have a rare interview with a titan.e equity blackstone's global head of actical operations and the co-owner of the 76ers in the philadelphia region. amazon scrapping its plans for new york. we hear from a democratic critics shouldys have worked to improve the deal. the race to fill mall space just ahead and why canada goose may a buying opportunity. that's all covered for you in top calls. from new york, this is bloomberg.
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>> that it's time. a look at some of the key recommendations. downgrading general dynamics. seeing competitive threats in both it and aerospace segment. next up, the analysts calling company's earnings impression sieve and recommending buying the recent weakness. weakness continues at 8.1% racing its price target, the highest. policy risks ial blown." fully overgrown. >> we wanted to get a quick on the markets.
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the best performer of the three major indexes, higher for a day and it's set to end the week up around 4%. of 's eight straight weeks gains. of course, when you look at the roader markets the nasdaq is being held. the equipment maker plunging on a disappointing forecast. yesterday, i remember the numbers coming out saying we'll drive down lds and the rest of the chipmaker. slightly.ng yields up we saw them significantly lower yesterday. 2.67.still remarkable how much energy we've seeing and how much yields remain lower. in the energy market because crude oil up. approaching to that $i-5 level, a barrel level once again. for its biggest weekly gain in a month thanks to saudi opec plus.sia and let's get a quick check on the headlines.ness
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caroline man loan any says pleased nts are not with the loss of amazon hq2. city a chance to diversify its economy. tax you did not like the reba rebate could start negotiating change it instead of just saying get out of here. try to work to make whatever the better.on is obviously we would have had to modernize and upgrade our transit system. could have been a benefit for the entire region. planned toad said it bring 25,000 high-paying jobs to new york over the next 10 years roughly $3 for billion in tax breaks as well as subsidies. of our catch more interview with congresswoman next hour. a make-up at the top of fedex. and c.e.o. has resigned just weeks after board. the company he will retire at the end of the month after more than 40 years shipping giant
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a fedex regulatory filing says the decision is unrelated to any with the company on any matter relating to or ations, policies, practices. and that's a business flash update. statement like that leaves with you more questions than answers. >> putting your foot to the fire. meanwhile, the 20th annual nba all-star summit is under way trends in que variations and technology. kelly ead over to jason masser.l masskelly >> we're here in charlotte, north carolina. the nba tech summit. there.zzing out we found a quiet corner to catch up with david blitzer. couple of different hats. co-owner of the 76ers, among other teams. on the 76ers just because we're talking the nba. big job at blackstone. first of all, thank you for joining us. >> it's a pleasure. here.to be
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>> all right. technology, day, help us understand how it has changed the game from an owner's perspective. >> well, first again, thanks for having me on. it's incredible to be here. summit and the overall all-star weekend is always so think about if you the tech summit and i know you've seen a lot of different eople in terms of the convergence of what's happening, between what's happening with court, what'sn the happening with them off of the court, and their engagement with fan days has absolutely just completely xploded in the age of social media. and there has been a lot of interesting commentary even at of the sessions this morning about how much that's et ged and how quickly, cetera, but i'll just say from this spective in watching connection, i would say over the year, grows so
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dramatically. no doubt. colorful players that really, really seem to dominate social media as well as court. so it's fun to watch that engagement. it's just going strength-to-strength. if you look at the global nature came. how that couples with the performance and athleticism of what's on the court. frankly, it's giving folks at home and around the world want.hey >> it does feel like the league for the most part have not just sort of allowed this to happen but enabled it to happen. >> absolutely. >> how and why? >> look, i think adam silver and team at e management the nba is incredible. okay? this and k they saw they saw it early and they saw that the connection that could between the league and the players with the fan base given what was going on from a standpoint in terms
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of how people were consuming are consuming media and more importantly, where the rend was going, i think they nailed it. and they continue to. >> it fascinating because this on for 20 been going years. a tech summit 20 years ago. where we t this is would be today. >> i was just talking to one of our partners, michael ruben, who to remember, he's been on a panel at every summit. if as trying to figure out it was 19 years, 20 years. ahead of the curve. the w does it change opportunity of owning an nba team? >> it's changing in so many different way. talk a lot about the social the ic, connection with players. if you think about the context. it wasn't that long ago where walking down the street and somebody was talking trash to him on a playground court. joel just walks over there, just dunks on the kid, and it just completely viral, literally
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globally. a,d that wasn't set up, like, that's joel, and b, that's the dynamic that's out there right with what the players, et cetera, can do. that's kind of one area. a new arena, and what's going on inside, it's tech ible from a standpoint. if you go out and see the sacramento kings new arena, to see the gsa warriors new arena. the technology and the engagement that they will have with the fan base is incredible. we're seeing technology change just about everything that we do. talking much more broadly, and then we bring it into, you and the sports scene particularly here in the nba. it's great. >> it's also opened up the rest right? world, >> i think the nba is the most evel game and it continues to go from strength-to-strength and we have the opportunity and the pleasure of playing two
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pre-season games in china this year. and i have to tell you, it's mean, a, just the excitement that that was driving mean, walking out of our hotel and the people that were around and in the arenas just the numbers. just the sheer numbers but to think about the ability to with that fan in northern china from the court in or boston or, pick our arena, you know, it's amazing. >> so the players have gotten big. exactly. >> sometimes it feels like maybe bigger than their teams. t feels like the only analog out there and this is one you're familiar with because your group team.owns a soccer >> yes. >> to players get too big ultimately for that you are team? worry about ou that, in this day and age? >> i really don't. the eality is, absolutely, players are building their personal brands and there was an interesting discussion on that actually, and i think what
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the players are able to do, partly it's about building their and being able to engage and part of base, it is, in my opinion, being able to talk to the world about to gs that are important them. it goes well beyond the sport. things of a charitable nature that relate to, you know, causes that they are ncredibly focused on and the ability for the fans, and forget just basketball fans, i just engage and ow, to understand, like magic johnson was talking a little bit about a player like today as versus when he was growing up. johnson fan.magic i tried to learn everything i could about magic johnson and the amount of information that i 1980s on magic information versus the information available today on it's radically different. so people's ability to really and what'sthe player important to them, off the court as much as on the court, i think
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really amazing. about e got to talk blackstone. your day job, after all. day and night job. >> they do pay you to do this. do you look at from a market perspective? hat do you see out there, and i'm especially interested in what you see in europe because you worked there for a while. for a second.xit are you a buyer in the uk, in now?pe right >> well, look, a, we have significant investments in the uk, and we're very comfortable the businesses that we're invested in, in the uk. i don't think any of us know what will happen. i don't know. pull up some odds, and everybody has got a slightly different view. >> i actually think that things i l work themselves through, do, and i think the uk is very resilient. et a great market economy, cetera. but it's bumpy, okay? and there are going to be times from just an
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evaluation standpoint, where you in, in wanting to jump different asset classes or ndustries relative to them having traded down quite dramatically. i don't feel like that's necessarily the case right now. are down a bit. but not dramatically. closely.'re looking >> where are we in the united states? i think we're all trying to --ure out >> i think economically, from a macroperspective i think we're place.ery good the reality is, we continue to see strong growth. you know, we can all debate exactly on interest rates you know, quite calm right now in terms of that cost of capital. from that standpoint. and we see earnings growth our companies. we're doing very well. one of the things we spent a lot really, hinking about, are, a, looking around corners, like what aren't we seeing,
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right? come up. we spend a lot of time thinking and wage growth and the ability to have pricing power. nd a variety of different businesses. >> is inflation becoming more of problem? >> correct. >> go ahead. >> if you think about the fourth as rates last year started to move up and the effects that might have as it that effectnflation on a variety of industries a adly is something we spend lot of time thinking about. >> so running tech ops, the world is your oyster. this is like the coolest job in investing in many people's mind. arsenal that huge you can put to work. more patient capital. of where some semblance of a majority of that this point?oing at what sorts of opportunities are ut there because you can be tactical. >> are there a lot right now? >> there are. look, the investment we don't have
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enough time to go through all the different areas. business in azing the sense that we really can play across everything. capital wise, structure-wise, geography-wise, ithin our business, and obviously, there are different points in time where different et cetera, are super attractive to us. hat could be just for purely evaluation reasons. it could be where we think those industries are going. example, we spend a ton of in the telecom space. none of that is like dramatic. we all knows what's happening in explosion and how people are utilizing their devices in everyday life. all know that the growth is there but the ability for us o find different investments within that space across the globe has been a ton of fun. the biggest thing that we're doing right now is probably structured equity. we're going into equity
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situations where we're helping ompanies grow, and that can be organically, it can be a variety f things but they need our capital and partnership to achieve their goals but we're generally going in above the and below some, you know, level of debt capital. e're at the middle capital layer and we think that's a terrific place to be. >> 30 second left. opportunity e beyond what you've said in 2019 globally. wow! e're spending a ton of time looking at technology and what it is doing to businesses where we can be offensive. of course, we think about defense. where we can be offensive. think about the tech disruption we can do with many of our businesses to drive that future growth and, frankly, in cases, business models are changing in front of our eyes. >> funding opportunities? are.e >> good funding val wastes? >> decent valuations.
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>> well said. you so much. appreciate it. blitzer with blackstone investment. this is bloomberg. i'm mark crumpton. as we've been reporting president trump is declaring a emergency on the u.s. southern border in order to unlock money to build a wall. him to will allow bypass congress to spend a total wall. billion on the the top two democrats in congress say they will use to ry remedy available oppose the president's declaration of an emergency to wall."he border in a joint statement nancy minority senate leader chuck she wcalled it an decoration over a cries that's does not exist. the said it would "shred constitution." the republican has his first republican challenger in the primaries. the former massachusetts governor says he's created a exploratory
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committee. he says president trump's riots are skewed toward promoting calls him too unstable for the job. e ran for vice president two years ago on the libertarian party ticket. long time congressman john laid to rest today at arlington national cemetery. 92 ied last week at age served 59 years in congress, onger than anyone else in u.s. history. the michigan democrat was the long time chairman of the house, energy and commerce committee and played a key role in laws on to ything from healthcare the environment, civil rights, and the auto industry. in ucceeded his father congress in 1955 and carried on wishes by l senior's introducing a universal healthcare coverage bill in each of his terms. global news 24 hours a day on air. tictoc on twitter powered by than 2,700 journalists and countries.n over 120
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i'm mark crumpton, this is bloomberg. erg. >> from bloomberg world headquarters in market, this is close.berg markets - carol: we are 19 minutes from trading day.e scrapping its plansng to open up a second location in new york. more about the company's decision. > well, the fallout today is that my constituents who were looking forward to getting these jobs, were very happy at it. i'm personally disappointed. amazon had come to new york we would have become the high-tech capital of the east coast. and that would have been more
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more more tech workers, people in this industry. one of the challenges of new york, and i've worked with new leaders for decades on our is to diversify economy. we're too dependent on financial services. an economic downturn on new york. many in the private sector, we would have meetings and and we had a competition to bring in a high-tech school in my district. we beat out all the other competition and had it located. tech, its training mit for new york city, training the tech leaders of the future. in tech huge investment and now we had someone who could actually higher the people being trained, and now they are leaving. the fallout is that all of my colleagues in congress are to get amazon to come to their state. virginia.ly
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>> the real estate is booming because of that. i want to go back to the central issue of diversification in new york because you mentioned the inancial services sector, having obviously deep ties in new york city. but to lure an amazon to new york, it would seem as if it would truly be a boom. where was the breakdown from your perspective? the specific turning point that turned amazon away? > well, first of all, i would blasio.ulate mayor de there were roughly 220 locality ity-states all that wanted amazon. new york won. we're the best city in the world. we should have been rejoicing. be for a project while you're working to improve it. my s working with constituents trying to get some ssurances and help and commitment for entry-level jobs.
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lower-paying jobs and they were amenable. they were responding to this. so i think the breakdown is, in their corner and then they didn't move. government is a process. you can work to make it better. think, also, a huge breakdown was, there was a negotiated tax $3 billion, and many elected officials and others portraying it like it was a pot of money that could have gone to schools. amazon was , building a school in long island ity and pledging 30 other schools to build tech education centers in it. t would have lifted up the educational level and strengthened our school system. improve e working to it. if you don't like the deal then work to improve it, and i think amazon had so many other offers. it wasn't like new york was the could go. they
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washington state is very happy. hey hope that they will expand more there. virginia is ecstatic. they think they may come there floor, olleagues on the i would go to the flash and they would say, carolyn, new york want amazon. we want them. tell us who to call. everybody wanted amazon, and a reputation of really helping the communities that they are in. about the $3 ed billion tax refund and you the criticism from a some in your party freshman a congresswoman ocasio-cortes. she and others are from your party, are r celebrating this and saying this them.win for >> well, my constituents do not eel that way, or many of them do not feel that way, and i have to work with them on other things. for example, we're working to get a subway stop in queens, in that neighborhood. it. deserve we don't even have a full
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firehouse. we need a firehouse. another day and we'll be working together on other projects. talented.all subsidy.e was no city. it was a tax rebate for the paid into the coffers of new york city. hundreds of billions of dollars they 10-year period so pled ledged 25,000 high-paying jobs of over $150,000 so they would ot get any type of refund or tax credit unless they created that job, and that job at amazon had paid really hundreds of millions -- billions of dollars taxes. >> democratic congresswoman caroline maloney. with her take on amazon, at great to have you here nyc and great to kick it off by talking about the ramifications amazon.decision of do you think it will change the
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way amazon looks to expand in to work ies or looks with politicians in general? >>ty should hope so. i think it should mean they do this beauty pageant approach ever again. i think they just treated this process with a sense of himsy and sweepstakes, failing to acknowledge that for local politicians, this is a huge rift ith huge ramifications for citizens and voters, and i hope they would understand, in that ion going forward they can't treat it that way. that it's a much more serious consequential decision. well.es have changed as we talk about this tech lash. maybe two years ago this anldn't have been as much of issue. we want to get your take on what you've been seeing as you look cross the retail landscape especially with shopping malls. you've been noticing that a lot f these landlords are now welcoming some of these online brands. digital brands that previously, able to have been secure any kind of lease in those malls. >> yeah. experiments er of in this area. one that i visited, called brand
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box. essentially it's a space that's quite literally designed to build up and tear down in a so the walls are modular. the shelves pop in and out. o's.ike leg >> exactly. vinyl wallpaper and it can be 500 square feet or 2,500 square feet. acknowledgment that everything in retail is becoming faster and more temporary. being beauty products sold in a drop model, where they are available for six hours and then gone. and busting oming faster than ever and i think these landlords realize while tenantshese traditional are closing their doors a lot of the openings are coming from new and they ng brands need more flexible terms and smaller spaces. hat's what works for their business model. >> the idea, i assume, is, yes, these short term leases initially, the hope is that these companies prove their prove that they are actually being out there in
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the malls works for them and they sign bigger leases. exactly. they are trying to grease the wheels for a longer term deal. they are trying to show that this is what brick and mortar can do for you. are the kinds of customers, when customers are mattress, on your try on your lipstick. perhaps they can generate more sales or different sales through relationship. that's what operators are tying to get them to do. >> at the same time, when you tenants like sears r macy's, no longer there, can they take up the space that those guys leave behind? >> absolutely not. of ahas to be a small part bigger solution for these mall operators. about 159,000 square feet. are 50 tod box scores 2,500 square feet. feet. are a small space. this is not enough to plug the hole but it shows a different of thinking by these mall operate force.
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the 10-year lease which was the they did of how business it doesn't work for everybody anymore an they have to adapt accordingly and they adapting in other ways. that's why they are welcoming example, or health centers. you see restaurants taking up a larger share of space many malls. relevant, i'm currently hold up in brooklyn which i love. over there, they have this new has exactly that. they have markets on the weekend. they also have an entire food market below it. touch it, really taste it, feel it, when you go out shopping. is it actually working for the brands? are they wanting to take up the space? are they seeing new ways in and who sit n sell really working for? >> it is working for them because they reach this you know,point where, facebook used to be this gusher of attention for them. ou could buy facebook ads and that was your customer acquisition strategy. the more of them doing this, the facebook changes its algorithms and business models
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t's harder to get in front of consumers online than before. kaspar mattresses said, yeah, we're opening 200 stores because digital customer acquisition is getting, not impossible but extremely difficult. plateaued? >> yes, exactly. >> the irony. here we are at this point in the they erce revolution and feel like they need to be in physical stores as new way to customers who wouldn't notice them in front of other channels. the gets new tenants into stores. they r leases you know will be in the same spot for the next 10 years. more s gives a environmental vibe. if the customer knows every time at the mall there will be different because that pad changes out every three months, six months, eight months freshness sense of and makes the mall feel like a capsule from 1995. 1985. >> thank you so much. great to see you in new york. time.back any >> coming up, fedex throwing
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wall street for a lap after top after departs just weeks joining the board. it's our stock of the hour next. this is bloomberg. this is bloomberg.
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>> headlines coming to you from mattel.maker we had a bit of a jump. down by 2.3%. this as we hear first quarter ross revenue is expected to be lower in the first quarter of 2018. at the you're looking estimates on the function it was expected to be $700 million in $708 was the number for 2018.
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be a always expected to 1% drop but maybe this is for investors. year-on-yeara flat in 2019. expected in the low 40%. volume with mattel pick up as well. let's move on to the storm of eyebrows acing some after a key executive decided to depart. we're talking about david -- he has stepped aside and this comes after taking a board seat. here to explain is david wilson. this?o you explain >> that's an interesting question. you have to kind of back up and say, look, fedex is dealing with challenges from amazon.com. it's getting increasingly into logisticsortation and business. and who is going to figure out how to deal with those challenges? it's fred smith, the guy who founded the company back in
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1971. it basically ing since they became holding 2000.y around he's one of the longest tenure .e.o.s, among the biggest companies, second largest shareholder himself, 7.4%. he's fairly well entrenched at this point. you mentioned that his number on to the board just last month. here's the thing. they did something else at the meeting. they allowed executives of the ompany, when they are 75 and older to stay on the board. that had been the retirement date. it happened fred turned 75 in august so it's clear he's sticking around for a while even see from this chart, the earnings report out of fedex have e past two quarters not been well received. >> this is a company that's made far,me ground this year so 10%, but it's been a painful set reactions. it's lower compared to this time last year.
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could a new coo actually help the situation in any way? possible.ntirely who are bringing in a guy had moved into that position --n offier..e.o. a couple often executive in his mid-70s. he's been there forever and the do you do comes what with succession? because he's not the only top to utive in the company leave in the past couple of months. fedex express business cunningham departed in december so you have to ask the uestion, who is going to run the company and how are they going to deal with the threats amazon?rom the likes of you can see it all there. the stake that fred smith has. tenure as c.e.o., one of the for standard & poor's 100. it's not like he'll walk away any time soon and that's a
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at a time, , arguably, this business is being disrupted by amazon the way many other businesses have over the years. >> we thank you. eye on fedex. the u.s. and china are set to in europe. we'll look at the growing network.of the 5-g we'll be back. we'll be back.
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>> back in 2012 you received an
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you of $2.5 billion and said, thanks but no thanks. with we can fly together the giants and be number one in the world. >> some people call you the girl.onaire >> i find myself and i see on this like standing giant -- [inaudible] >> let's get you a check of the latest business flash headlines, wells fargo could have a one man show on capitol hill the "wall street journal" eports that the c.e.o. is expected to testify alone on march 12 before the house financial services committee. scrutiny over a consumer abuse scandal. he'll be asked to testify again ofapril along with the heads seven other large u.s. banks. > shares of deer are falling after reporting quarterly results that missed some profit and earnings for share.
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c.e.o. blamed tariffs with struggles of u.s. farmers. the declining numbers for the quipment maker are the latest sign of deepening troubles in the american farm belts. to award shareholders, the british thunder want to ease brexit looming, possibly, if it doesn't get extended. the c.e.o. said the bank plans more than $2 billion to shareholders. even with the planned payout it one of the strongest europe and banks in that . leaders from around the world the munich at security conference in gaempl. there are lots of key issues, rom nato to security concerns over 5-g and tensions over the iran nuclear deal. matt is stick around late for us. what's taking your eye? particular, they are out in force, aren't they?
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the chinese technology, caroline, is a huge issue here. problem is that germany has invested already a lot into to create its 4-g communications network, and now hat we're moving to 5-g it would koocost a lot if they wer not to use the company. an issue between deutsche telekom, the incumbent and the rovider here finance ministry as well as the economy ministry. spoke earlier with the minister of defense and asked her what her take is on chinese security. >> we have to act on that field. figure out how we secure our communication and how whoever is that upplying it is confident and trustworthy, and therefore, it's an urgent one. >> so that was the minister of
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ursula von derr leyen talking about the 5-g gear issue. the iran thing is issue. vice president mike pence in munich a couple of hours ago. he was given an award just the organizer of the conference. he's been criticizing germany, uk for trying to put together a special purpose circumvent rder to u.s. sanctions on iran and it's been a real point of contention. another point of contention at least on the u.s. side is how much germany pays for its own defense. specifically how much it contributes to nato. i'm sure that came up as well the conference. >> yeah, you're absolutely right. she said they are trying to get or they are still aiming to get 2% of gdp. that was the agreement that all in wales ambers made
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few years ago. it's not just germany that's target.f that 2% in fact, most nato members are short of the target. the .s., of course, pays lion's share of nato's budget and that's a concern for the administration. it's been even before donald trump came into office. she's made a point that they are get and they have gotten much closer to that target in recent years. something barack obama brought up as well but certainly new brought it to a whole level. thank you for joining us and staying late for us. et's get you some breaking news. mattel, we were updating you about what their saying on their a massive aving effect on the stock. it's 13% at -- now lower, the biggest move since october 2017 as the outlook disappointing. it's being bringing down hasbro. had to be halted in terms of trading.
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heir cash balance of 450 to $500 million, they see $30050 to adjusted.on 2019 the gross margin expected in the low 40s at the moment but it eems that the capital expenditure in 2019 will be roughly in line with 2018 but music to investor ears. >> not at all. ou're seeing a huge pickup in volume. average volume, this tracks the volume of mattel shares and you up. see the move the leg up, halt in trading. there is that leg up once again. average indicates the volume for the last 20 years. we've surpassed that by a wide margin here as investors this ue to react to disappointing outlook. >> certainly. a disappointing for mattel. too.ro thinks, this is bloomberg. too. this is bloomberg.
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. >> i'm mark crumpton with bloomberg. has signed ump legislation to avoid another government shutdown and pay for fencing along the u.s. mexican border.
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it gives the president 55 of board miles fencing, well short of the 200 plus miles he wanted. of measure also keeps part the government from shutting own at midnight, by providing $333 billion to finance several cabinet agencies through september. verbal sparring between president trump and the white house press corps. his time the disagreement was over the statistics he used to say he needed to use emergency the united otect states from drug dealers and illegal immigrants. > i get my numbers from a lot of sources. like homeland security. primarily. and the numbers that i have from homeland security are a disaster. and, you know what else is a disaster? the numbers that come out of homeland security, the cost that and the money that we lose because of illegal immigration. said the sident also board wall would be needed to battle drug cartels as part of as a virtual bed invasion from mexico.
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he supreme court will decide whether the 2020 census can include a question about citizenship. he outcome could impact -- the allocation of seats in the house of representatives and billions of dollars in federal money. the skwuss have agreed to review court ruling that's so far blocked the trump administration from adding the question to the census for the time since 1950. andnational football league quarterback has settled a case him off the team. he also settled a similar claim someone else. he ignited a protest movement against racism and police kneeling on the sideline during the playing of the national anthem at games, in statement the nfl says their grievances have been resolved and there will be no further because the two sides have a confidentiality agreement.
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kaepernick isn't played since the 2016 season. tictoc on twitter powered by journalists an analysts in over 120 countries. 'm mark crumpton, this is bloomberg. 3:00 p.m. in new york, 8:00 p.m. in london. life from bloomberg's world headquarters. this is "bloomberg markets - close. rallying. tax sides race for a increase on march 1. meanwhile trump tees up a fresh invoking t by emergency powers to build his border wall. hedge-fund billionaires, find which money manager still bumped up their fortune when most of the industry struggled. that and so much more coming up. >> we've got an hour to go in
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trading before the three-day weekend. now we have a rally on our hands. all est performer out of the major indexes, expected to end the week by around 4% off an eighth straight week of gains. small caps all the way. >> the s&p 500 putting in a good evening, hit a 10-week high this friday. ease some seemed to concerns about u.s. health and in nice lip service paid china and the u.s. for the trade negotiations. >> that's helping to lift crude oil. looking at the chip 4% down, maker, plunging on the forecast. reasuries are down and that's putting pressure on yields. inch up to 2.66%. et's take a closer look at what's driving some of today's action. commodities, all on the move. >> we're starting with a little bit of breaking news. at mattel, trading halted and resumed twice in
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minutes.e last 15 falling 11% the first time. then fall further 15%. down around 14.6%. gives its the company analyst presentation here in new york. it seems that the outlook is disappointing to analysts. remember, mattel owns -- the c.e.o. saying the company still has a lot to do. still in turnaround mode. seeing first quarter revenue for it was lastwer than year. also expecting gross margin to be in the low 40s. also saying they are targeting 2019, 350 to $400 million. that doesn't really compare very well with the consensus estimate $512 million. this is all after the company best day ever. or the shares in the company had their best day ever. week ago xactly one last friday, when they put that good holiday sale quarter. friday they closed up more than 20%.
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so if you do look at the shares ver the course of the last two weeks, they are still up. we'll be keeping an eye on mattel. thanks. with the u.s.-china trade talks seemingly headed in a more to tive direction i want turn your attention to soybeans. this was an area of the u.s. economy that was the most by the trade tariffs or the retaliatory trade tariffs by china. exports of u.s. soybeans plummeted last year, now there usda report that says if the retaliatory chinese getting emain in place soy exports back up to pre-trade ar levels will take almost a deck a. war started it dropped to about 57.9. the next year, and this year, that ends in august of 2019, exports are expected to to 56.1 million. they are basically saying we won't return to those 2017 until at least 2027, and
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in the meantime, we're going to from t of competition south america, brazil, argentina, taking a lot of the global markets share as we fight things out with china. soybeanse from toys to to the financials. financials up 1.9%, the best sector. among the best performers. revealed thataway barren buffet increased stakes in all of these banks. banc of america, in fact, is the firm's second largest stake at 12%. that the e betting oracle of omaha sees loot ahead if we financials, and take look at this chart in bloomberg we'll see the light, perhaps we're coming closer to it. also the fact that warren buffet berkshire, increasing those positions on a big, big move to the downside. s&p 500 showing tremendous underperformance for the financial sector. 2/4 when berkshire hathaway was
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buying. starting to increase if the downtrend can break. it may suggest the financial start to outperform the s&p 500. we'll see. >> for today, they are. thank you so much. abigail and the markets team. president trump is hailing progress in the u.s.-china trade this week saying he may extend a tariff truce and ake steps to sell a potential deal with opposition lawmakers. resident trump: it's going extremely well. who knows what that means because it only matters if we done but we're very much closely, with china and president xi, who i respect a lot. we're joined now by bloomberg's international economics and policy correspondent. they will continue to speak next week and they may extend the deadline is encouraging? encullinouraginencouraging. when he dent nailed it said who knows what this means
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because no one has a clue where we are. we can say is that the white house and the reasury department, steve, tweeting they had made progress, and so did the chinese. they said there had been made.ss no one is describing what the progress is or how far away from a solution we are. and that's the real question, with so little time remaining and such deadline, complicated negotiations to go through and they are not negotiating every day. coming back next week to washington. you have to wonder if they are which raises it the odds that the president, if he thinks something is going time.would give them more >> and certainly it's given some relief to the markets. hit the aven't seen -- the quite so much is shutdown, but this is still an important step. this is a major deal that will occupy sort of some litical space for time now. the president is saying there is
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a national emergency on the that requires him to be able to take money from other places, and use it to build the can't get it e from congress. a lot of questions about whether this can succeed. he has the right to declare a national emergency. this is general agreement on does with that afterwards really open to question. one of the questions is, is national emergency? the president was asked that today and he said no. to say.hat he had >> i could do the wall over a longer period of time. to do this.d but i would rather do it much faster. were in the white house council's office would you be going, you know -- how do you in court.t that's only one of the issues. courts have generally been eferential to the executive branch on questions like that. but there are also questions about whether he can actually the money. the president at the moment has a plan to take money from three sources, military construction, money that was
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appropriated to build other things for the military. $3.6 billion. some anti-drug programs that one through the pentagon, acted billion, and money that the treasure department collects by slg off assets seized from an people like that. that's only about $600 million but overall, you put that with $1.4 billion he got from about $8 nd he's got billion to play with and do some wall construction if it's through.o go >> the amount he was asking was $5.7. throughmes up with more this process. the question is will the courts allow it? congress is also going to vote on this. the house -- the law provides for a resolution of disapproval. he house will do that quickly and because it's run by the democrats, they will approve it. then it goes to the senate. how many republicans think this a really bad precedent to the of obviate constitution's view that only congress can appropriate money? ow many will switch sides and vote with the democrats? probably not enough to overside
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it may ential veto but slow everything down, if they get a few republicans to join he democrats on this, in the senate. >> i have a feeling, politics back in the uk, things aren't to move fast. thank you. > the lawyers for employment act. >> let's have a quick look at what's happening in terms of the s&p 500. coming off of a high. s&p 500 financials, still up 1.8%. thank you, warren buffet. >> thank you for big more j. and banc of n america. that's been the list in the financial sector. eanwhile, energy also outperforming. per ving towards that $56 barrel level again thanks to saudi arabia and russia. we're keeping an eye on what's on in europe and the uk. >> europe, concerns about politics in spain. elections being called. the building of momentum against uk is proposing
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in terms of its brexit. in fact be could, struck. that report in a moment. will they capitulate to europe? currently down .0056%. this is bloomberg.
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>> nba all-star technology summit is hot and running in shawl, north carolina. bloomberg's caroline caught up owner of the sacramento kings. they discuss what it's like to open an nba team. first thing do you when you buy a team is you realize you don't really own the team nd the team belongs to the fans, it belongs to the city, it belongs to the community, and it even belongs to the media but we're seeing is a new
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generation of owners that are very tech savvy. socially aware an socially responsible. share this desire to it, and ot of fun with also to do good. >> also be pretty savvy operators. feels like we've seen this transition, especially in the nba. buyers and out the owners of late. very successful investors. many of them. hou -- entrepreneurs.few hou >> first, i think this is still undervalued asset. the first team we bought was warriors. $450 million. for the kings i paid $540 million, which at the time was unprecedented. i went on record as saying is i thought it was a steal.
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li will i still be using my iphone 20 years from now? i still be , will watching nba basketball? for sure. this is content that has global appeal. watch it in your own time. base.ot a growing fan and the big challenge today, how every company has, is do you engage people? if you're a bank or you're an customers.u have youou own a basketball team have fans. fans are a whole different level engagement. >> this is what's wonderful about talking to somebody like this. the mixing the sports and game with your tech background creating many companies. ary.re a vision you've got to blocking down the road. ow will we be watching an nba team at an nba game in the future? >> so people will still go to arena. the arena, we built a new arena think about it, the
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technology hasn't really changed, so we tried to flip that paradigm on its head. rather than you checking into arena, the arena checks in with you. a giant he arena as game console and your phone is the control for that console. ou're only limited by your imagination in terms of the kinds of games you can play. basketball is one. entertainment. there is gaming now. but it should also be your choice. able to d be participate from anywhere in the using so we've been technology, for a fan, anywhere in the world, can have the same if t you have, sas you're sitting in my seat. we're continuing to push the democratizing it and making it accessible to everyone. >> as of today you're launching experience within the arena that leverages some data, would imagine gambling becomes
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much more pervasive and egalized and encouraged even across this sport. >> with the new ruling states to set their own laws, and it's only a matter of make it re most states possible to participate in sports betting. $150 billion illegal business right now so it a good bring it into the sunshine and to do it in a responsible fashion, so today we announced that we'll have a gaming lounge within our arena. like a 211th -- in a previous --ife this is a very high-tech trading floor but it's fun, we're making this available to our repeat customers. predictive to have gaming so it's free to play. you'll be able to play different games. for three doing this
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years with call the shot. but it's going to be a lot of fans.r our >> they aren't going to see it right?ling or gaming, it's like an extension of at home?ort night # they had 10 million or 1 million views. it's all part of the engagement that kids love. >> that was the owner and chairman of the sacramento carol speaking with our massar. you can catch that interview and once that we've got on bloomberg with the function tv go. maloney.caroline a democrat from new york state talking about amazon's decision to pull out of the city. you can interact with us directly as well and good part conversati -- be part of the conversation. this is bloomberg. of the conve. this is bloomberg. part -- be part of the conversation. this is bloomberg. part -- f the be part of the conversation. this is bloomberg. part --
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be part of the conversation. this is bloomberg. part -- be part of the conversation. this is bloomberg. bpart -- be part of the conversation. this is bloomberg. epart -- be part of the conversation. this is bloomberg. part -- be part of the conversation. this is bloomberg. of the conversation. this is bloomberg. of the conversation. this is bloomberg. of the conversation. this is bloomberg. of the conversation. this is bloomberg. of is is bloombe. the conversation. this is bloomberg.
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>> leadership is about human nature. are you able to build a team that's got diverse opinions, with you t can argue and question your assumptions and yet bring that team together critical moments? >> now, if you're based in the buying u're thinking of a rather luxurious car like a
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porsche it could be about to get more expensive. porsche is mulling a possible 10% duty in the uk in case of a hard brexit. the moment, uk is comeurse for a hard brexit march 29. cars that might arrive after the date currently have option to adjust their order accordingly. here are the ramifications of in the uk ening looking to exit. w owns porsche and it's commenting in an email statement. >> i wonder if that means you can cancel completely and get refund?l >> anyway, it's time for options. abigail? >> thanks so much. joining me today is kevin kelly investments. happy friday to you. we have this rally this year, this on fire rally. s&p 500, i think, up some 17% or 18% from a december low you're talking about the idea that skew is also low after spiking. aren't puttingle
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on portfolio insurance answer. >> yes. see after a ld you big trough, when we come back from that you would start to see a lot of portfolio insurance happening where people are uying long out of the money puts. lock in your return and you actually have that portfolio case there is another downward draft. now, that's not taking hold so seen skew around 125 to 126, relatively low especially to last year when we started to see the market run up 134-140 ry and go up to level. it's just showing a lot of investors aren't putting on that insurance. we saw names like deer that have gone down. the industrials have done well year. exemplar, though, talked about high water marks. they didn't do well on earnings. fascinating aspect. >> are you able to tell whether folks aret means that not planning on some sort of a ig crash or catastrophe situation, or that it's kind of
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flat lining or higher? >> yeah. it's a nice gauge to see where nvestors are positioning themselves, so you can actually ee where sentiment is for the future in regards to if they are extremely bullish you start to hedge yourself. if they are extremely bearish you start wanting to get long. at the 125 level, i expect it to be higher saying, to gobably have more room here but because they haven't put on that insurance it's kind worrisome. >> what are you seeing right now? >> that goes back to where the vics. it's relatively muted because we've seen sock and sector correlations over the last three to one.lmost go they are all trading in very high tandem. that's worrisome in and of itself. we know there are clear winners and losers. this seems to go back to whole level macroview with the fed becoming doh vicious. risk on thinks it's a
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rally. >> trying to make up for poor performance last year. great alk about a performance on the cyrus one-year trading idea. >> we saw google announce they spend $13 billion on data centers and infrastructure. we also had the largest data company come out and they actually beat earnings pretty significantly. they were up 7% yesterday alone. so this is a knock on effect into a great data center company relationshipsegic with microsoft so what you want to do here is you with respect buy the out and just september 55 call. just go along that call. it cost about $5. you have all the upside. the most you can lose is that premium that you're spending perform $5 but they pretty well over the last year. last quarter, their earnings -- 18% so venues were up this is a great way to play that future.nt into the >> nice trade. kevin kelly, benchmark nvestments and also great insights. thanks for joining us for options insight. caroline and scarlet, back to you. we're setting up for a higher
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close here for u.s. stocks on this friday. gaining for a fifth time in six days. it's at a 10 week high here and financials are a big reason why warren buffet according to filings has boosted his stake new york cimorgan. one of hile, down 2 #%, the big falllers. currency is up but stocks have been lower today. looks pretty ugly. factory orders not moving up to expectations. rally in stop the europe nor here in the u.s. >> that's right. both of them moving higher as well. this is bloomberg. i'm a veteran
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and the army taught me a lot about commitment. which i apply to my life and my work. at comcast we're commited to delivering the best experience possible, by being on time everytime. and if we are ever late, we'll give you a automatic twenty dollar credit. my name is antonio and i'm a technician at comcast. we're working to make things simple, easy and awesome.
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i'm mark crumpton. president trump says he is declaring a national emergency on the southern border in order to unlock money to build a wall. the move will allow him to bypass congress to spend a total of $8 billion on a border wall. speaking from the white house rose garden today, the president said he knows there will be legal challenges. expect to bemp: i sued. i shouldn't be sued. very rarely do you get sued when you do national emergency. then other people say, oh, if you use it for this, then what are we using it for. we have to get rid of drugs and gangs and people. it's an invasion.

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