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tv   Whatd You Miss  Bloomberg  February 19, 2019 4:00pm-5:00pm EST

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where there will be a classic sell the news. china people may say the news cannot get any better, but we are more likely to see a positive on the resolution on the china trade tensions. caroline: just as the market closes, we rode the rally we saw today on optimism. the dow jones basically closing flat. in andsmart money coming selling what has been the second day of gains in the s&p 500. romaine: we are basically almost where we opened on a lot of the indexes. i think it shows that the market is in the little bit of a wait and see. taylor: and the tech sector outperforming and the russell , and i have been handling -- hammering on that. you would see those outperform with a stronger dollar, which we are not seeing.
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luke kawa was telling us it seems to general be -- generally be spaced at the echelon >> i'm taking a look at the 200 day moving average on the s&p 500. the s&p 500 closing above the line for the fourth time in a row, longest streak going back to last october. chargeake a look at this last year, the 200 a moving average acting as support for much of last year's volatility. last october, when we had the volatility, above it for four days, could not hold. it would be interesting to see if the buyers can continue to hold. low, whenigh or last we bring the rsi in, it stretches into overbought conditions and may suggest we could cool off a little bit and perhaps the s&p 500 dips below the 200 a moving average.
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mike: with stocks up and gold up, a lot of people are scratching their head at that dynamic. up most active gold track is to $1343 an ounce. that makes stock bulls nervous. the past few years, when gold is up this much, stocks are down about 64% of the time. the average drop its almost half a percentage point for the s&p 500. bloomberg intelligence is looking further back to look at the tracks and flows. he noticed -- one representative noticed the tracks are up 60%, which is twice them about gold has been up. he is saying investors are preparing for a weakness in the dollar and the end of the
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outperformance of u.s. equities versus the rest of the world. gold investors are really sending a bear signal out there that stock investors are taking note of. >> i'm taking a look ahead to a key meeting tomorrow between the u.k. prime minister and the european commission president. i know we talk about key meetings frequently with brexit, but this is considered to be one because a spokesperson for the prime minister said the meeting is a significant part of her plan to break the deadlock over the irish backstop. do with whether or not there could be a hard border between northern ireland and the republic of ireland. you because says he expects the unkang to be friendly -- says he expects the meeting to be friendly. been above one spot 30.
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investors have bought into the currency and are anticipating breakthrough. we've been here before. whether or not a breakthrough will happen will come through and we will find out tomorrow. we will see if today's market move is also replicated tomorrow. caroline: those crucial meetings keep coming in thick and fast. meanwhile, let's get back to add kawa bestand luke luke, -- luke kawa. the fed looms larger in the u.s.. them and where do you see that's spilling into your hunger for riskier assets? >> i think the fed has been the most important factor, both in the way down after the early october comments from the chairman, and the more dovish stance has set the stage for the rally into last year and into the first part of this year. it has been fully priced in.
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we are up about 10% on the major averages this year. my guess is that most of the gains we will see over the course of the year are already in. the resolution of critical issues like china trade and car could break either direction and have a positive or negative affect. i tend to think they will be benign for u.s. markets. a few percent, not 10% if they break the runway, but the next thing will be how is the economy? how does the u.s. economy -- how and when does the u.s. economy break? romaine: the market has pushed higher because of hope. those are not necessarily fundamentals. looking at the rally over the past eight weeks, what will keep this rally going beyond evaluation? stocks are not cheap anymore, so you can't use that argument to keep buying.
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luke: in terms of something that could unlock multiples, a trade deal would help people a more for stocks, bonds yields staying low while the u.s. economy stays on track. that leaves more people to say this is the only place where i can get the return. on one of the fundamental side, the earnings stopping to be revised lower, that would be a big sore spot for the market in terms of knowing what you are buying. but, we rally for a reason. the fundamentals are not nearly as bad as december, even with the bad retail sales report. taylor: we talked a lot about the run-up in equity prices and that brings us to the point that the dividend yield is not as attractive i did was one month ago. wehaps some of the rotation are seeing is because maybe the bond yields look attractive relative to do the dividend yield. where are you on that debate in terms of the sector rotation
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between stocks and dividends relative to the dividend and bond yields? ed: for the moment, the risks and rewards are balanced. that's why we are close to benchmark weights on both stocks and bonds. we have been big buyers over the past few months of treasury bond futures, so we have a big chunk of our money in treasury bonds, and they are slightly long-duration relative to benchmark. worked well,fe has not as well as stocks, but it gives you the nice cushion for diversification depending on what happens with other issues. caroline: what are we seeing, luke, when it comes to appetite for further appeal outside of the u.s.? we heard from ed talking about emerging markets being the place to buy. luke: i think it helps and you
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have a lot of that speaks that can help reaffirm those traits. bank of america -- trades. bank of america, i think they hit the head on why people are lacking em. people are not that optimistic about the upside, but when kerry is available in em and the world is not going to hack in a handbasket -- heck and a handbasket, it is a decent place to be. romaine: let's go back to the fed. we are getting a read on what the direction, not only of policy, but how the fed communicates with the market after the debacle last month -- or in december, excuse me. do you see the possibility that powell has been right? ? that we will have the soft landing the market once and the economy once? ed: the fed always forecasts a soft landing. they will not predict they will fail. -- although wer had one piece of anomalous data on retail sales, we can't us
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miss it, but we can dismis -- can the question it. we are heading to a slower path. worse.uld easily turn occasionally in the economy, you do have a downturn. pathr we are on a glide from 3% to 2% growth this year. the feds forecast has a decent chance of being correct. taylor: i want to ask you a big picture question and ask to enter in 30 questions, so bear with me. we talk about tom most of equity returns and 2019 are behind us. as you look forward to 2019, perhaps the weakening fundamentals, how do you differentiate yourself from 2008 to now? what are you doing to change 2019 --els to make sure
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ed: if you look at quantum model performance in this calendar year, after a rough 2018, it has been well. a lot of quantum models depend on values to work. tend totive models balance value with the concept of investment quality, and some measure momentum. those things have been working so far this year. some of the changes we have made in our asset allocation team has been to balance quantitative models along with human judgment because a lot of the things we are talking about like trade talks and so forth, they are idiosyncratic. have a combination of solid quantitative models and human tols intervene. taylor: thank you. at was ed keon, chief investment strategist at qma.
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that does it for the closing bell. next up, the past 2020 -- path to 2020. announces --n this is bloomberg. ♪
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caroline: live from bloomberg world headquarters in new york, i am caroline hyde. taylor: joe weisenthal is off today. caroline: u.s. stocks managed to
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maintain gains -- gains. hints from fed speak and fomc minutes. more signs the central bank is causing. bernie sanders announced his presidential bid while elizabeth warren proposed universal childcare funded by a wealth act. the u.s. is asking china to keep the value of the yuan stable. romaine: the fed has a new mantra, patience. take a listen. >> the common sense risk management suggests patiently awaiting greater clarity, and approach that served policymakers well in the past. >> the approach we need is one of prudence, patience, and good judgment. >> we would be well served if we paused and were patient for some number of months.
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january's minutes are out tomorrow and we will see how patience is influence the central bank's thinking. our u.s. economist for bloomberg economics joins us now. really going to be a blockbuster day where we learn something we have not heard already from powell one of the other members? yelena: we heard a lot from them since the december meeting when -- since the december meeting they change the view and the january meeting is obviously important. the minutes from the december meeting are very important because of that swing in their view. what we should look for in the minutes is, first of all, what they think about the balance sheet, all the details about the size, tapering versus not tapering, stopping it right
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there cold turkey, and we should look for signs about what the more hawkish policymakers thought about removing policy guidance in the january statement. bethey agree that we should absolutely data dependent, or do they still think the next move will be a rate hike? -- came out today to say we might need a rate hike. we will see how strong this consensus is. taylor: you mentioned the december meeting. as we have talked to analysts, a lot blame the fed for the december volatility and miscommunication they got across. one man responded to that yesterday in a bloomberg opinion piece saying it may be getting away from the dot plot and the central banks pursue an approach that gives markets potential outcomes and provides analysis that can provide a better
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approach to policymaking. would you advise to get rid of the dot plot and get a better communication tool from the fed? yelena: absolutely not. it's a good tool to have and it is straightforward. dot plot gives us an idea of where the rates are expected to go giving the meeting growth forecast. it is not a perfect tool. it has its flaws, but it is hard to put everything on a two-dimensional graph. will beemove it, it's fed -- get rid of the fed transparency. caroline: it's the uncertainty around forecasts, does that have to be given by the fed chair and those around? will we see the onslaught affect communication continue? yelena: it is a positive thing. think about what we had several
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years ago, when they started all of this speaking and casting different opinions. the fed communication has improved a lot in recent years. ,fter the financial crisis having different opinions about different policy paths is not a bad thing. it gives us an opportunity to listen to all of them and really understand what the consensus view is. caroline: she gets the spent speak -- fed speak, thank you very much indeed. the democratic ballot gets more clouded. bernie sanders has announced his 2020 run. we have all of the details ahead. this is bloomberg. ♪
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caroline: time for a look at what stories are trending across the bloomberg universe. as a former softbank employee that has become a multimillionaire by focusing on the dullest of what color -- white color tasks. a coolow worth more than $360 million. don't expect many sunny days this summer. of the topic suggesting pollution may be lingering and some storms are becoming more powerful. reportingtwitter is light saber fencing is an official sport. they hope to make the sport -- the federation hope to make the sport more appealing to younger generation. you can follow all of the stories on your terminal,
4:22 pm, and on tictoc. taylor: bernie sanders is giving it another go. he announced he will run for the democratic presidential nomination in 2020. ballot,name on the elizabeth warren, is making waves proposing a universal childcare plan that would limit the cost for american families to about 7% of their income. for more, i want to bring in bloomberg's congress editor. i want to start with bloomberg senators -- bernie sanders. have any of his policies changed or is this just a better environment for him to come back and hit the campaign trail again? >> one of the policies he promoted in 2000 16, he is promoting again, but it has shifted. he lit a lot of fires under progressives, young people, and energizing them for 2016. there is now a lot of candidates in the democratic race who are being warned by the same --
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warmed by the same fires. most notably elizabeth warren. he has a real challenge in trying to set himself out from the rest of the back when there are a lot of other choices. the last time he ran, he was against hillary clinton who was a conventional centrist candidate. heat does not quite have the unique position he had before. he is going to have to break out of the pack to re-energize all of those people who brought him into early competitive situations in 2016. romaine: other folks who so far, bernie sanders lives the furthest left of the ones that we know of, soviet -- so he does have somewhat of an advantage, presuming that is where the democratic party wants to go. are you hearing anything out of washington about where some of the more centrist candidates
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have a more viable chance of getting the nomination and being a challenge to the president? , as i'mquite early always pointing out, but the separated have themselves into these lands of the real progressives like sanders, warren, and there is a moving toward the center of kamala harris and cory booker. then, you have the more centrist amy klobuchar in there as well. right now, sanders goes in with a high name recognition. a lot of the early polls show him leading the rest of the pack, but now that he is in, that is likely to change. kamala harris in particular has been drawing big crowds and getting a lot of notice and moving in the polls.
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the other people who are more centrist, we have governors who might jump into the race. it will get real crowded, so it won't be clear for a while which way the wind will be blowing with the democratic primary. caroline: when we think about setting yourself apart in a crowded pacts, one person doing that is elizabeth warren and putting forth far-reaching policy initiatives. one caught was about childcare. theyou talk to us about realities of whether or not that amount can be spent on that and who it would help? joe: this is something that is a two parter. policies, and the other being tax on the family of 50 million dollars going up to one million. that is necessary to pay for this plan which would cost $70 billion annually. this will be popular in both parties going forward, but there
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is details that would need to be worked out. this gives her something to hang out on. it's a specific policy and an initiative she is beginning a conversation on. even if democrats took the white house and senate, there would still be a whole lot of debate on the particulars of this plan, which primarily designed to benefit those with low incomes say a family of four with a $51,000 per your income, but it would also benefit all families of the in scare -- of the income scale by limiting childcare. it would cut substantially into the average childcare cost. we are talking about, primarily, daycare situations. caroline: key to ensure that perhaps more women get into the workforce. thank you joe sobczyk.
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a quick check on the latest business flash headlines. a billionaire investor is in talks -- he said shares are undervalued and shareholders might best be served by a -- karl lagerfeld died and the designer also cannot collections for many people and his own label. ofwasn't a man who is afraid making a statement or two. one that kept my eye open was that he cap sweatpants are assigned -- he said sweatpants are a sign of defeat. [laughter] romaine: the best interview i saw with him was when he was four years old and he asked his mother for a ballet. taylor: in the bigger broader issue of luxury and where you go and the succession. caroline: he set the president
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when it came to making luxury aspirational. this is bloomberg. ♪ al. this is bloomberg. ♪
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mark: i'm mark crumpton with bloomberg's first word news. trump says he will prevail over a multistate lawsuit, challenging his emergency declaration to pay for u.s. mexico border wall. speaking to reporters at the white house, the president said he expected to do "very well well"t the suit -- very against the suit is he had a right to make the declaration. a california official outline his states legal strategy. >> to get the president to respect the rule of law. it is to get the president to read the constitution, which says in the first article that congress is the body -- the
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branch of government that has the power to allocate dollars, not the executive, not the president. to get the president to stop trying to do what is not his role. mark: california is one of the 16 states that filed suits against the president's emergency declaration. the lawsuit filed in the ninth circuit court of appeals alleges the declaration is unconstitutional. a federal appeals court has revived a lawsuit against a billionaire and two israeli banks. he's accused of conspiring to force palestinians out of israeli-occupied territories and war crimes. are suingns who claimed he plotted to fund millions to israeli settlements and spent the money to kill palestinians and confiscate their property. factoryans to close its
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in western england in 2021. that's a fresh blow to the british economy as it struggles with the uncertainty of leaving the eu next month. >> that is devastating news for those workers and their families, and for the local economy that has been generated largely around that plant following the collapse of the railroad industry. mark: honda's president and ceo told officials that the decision makes most sense on accelerating its production of electric vehicles. the decision would mean that the loss of at least 3500 jobs, and possibly more. the pitcher who was one of the first my players in the league, has died at the age of 92. he was a rookie of the year, four-time all-star and was a most valuable player and award
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winner. theirped the dodgers win first world series in 1955 when he had a record of 20 and five. global news, 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. caroline: chinese negotiators are in washington for trade talks in the u.s. is asking china to keep the yuan stable. meanwhile, the u.s. faces trade tensions on another front. as president trump mulls raising tariffs and the eu vows retaliation. let's bring in our trade reporter in washington to break it down. the yuan stabilization, i thought it was stabilizing. it has been strengthening for a month or so. why the need to press harder? last year,back to there was a point the u.s.
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introduced the first wave of tariffs against china and the trump administration thought the one of the ways the chinese reacted was by letting the yuan depreciate to offset the impact of the tariffs. the trump administration does not want to see that happen going forward, if there is any deal, because the tariffs are likely to remain in place and be one of the ways the trump administration polices any deal. it also fits with a org-standing u.s. concern concern in parts of washington that the chinese have been manipulating the currency or weaken the currency to get competitive advantage. that is something the donald trump ran on in 2016. of his most consistent economic messages was that he was going to label china a currency manipulator. if he can address that in the trade deal with xi jinping, maybe he gets some of the way to tell his base he addressed those
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concerns. romaine: in addition to china and the idea of addressing the issue there, the u.s. is trying to address the issue with regards to the eu and with automotive sales for production. do we have any indication as to what the administration's thinking is on resolving the matter anytime soon? >> we have the president public pronouncements last year saying he wanted to see a 20 or 25% tariff introduced on auto imports, and that that was a -- with that was a way to influence imports from europe and japan. they are also a target in this. the one thing that you and japan share in common, other than the auto surpluses with the u.s., is the fact that they are embarking on trade negotiations with the trump negotiation. those have not started, and the -- trumpinistration administration.
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those are not started, and the trump administration says he will not go on with tariffs while the trade talks are ongoing. there's a 90 day talk on these talks and that would be a provocative thing to blow up those talks. caroline: we talked about the -- taylor: what is the stable yuan rank in terms of china's priorities. they have enacted fiscal attacks, monocle policies -- monetary policies to help the flow. how are they reacting to some of these policies? shawn: i think the chinese -- this fits with their plan. it is one of those easy promises they can make to the trump administration. as we said at the beginning, the yuan has been fairly stable lately. it is something that is in their interest as they tried to keep or build confidence in the chinese economy and let that stimulus get to work. the last thing they want to see is a rapid depreciation in the yuan, a lhasa confidence -- a
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loss of confidence in the chinese economy. taylor: one company that has a lot riding on the outcome of the trade talks and potential auto tariffs is tesla. showed theing revenue dropped in 2018, even as it aims to build a factory outside of shanghai. and analyst over at cowan joins us now. an underperforming rating on the stock. talk to us about how inflated tesla may or may not be from these auto tariffs. they were able to double the revenue in the u.s. and revenue in china is falling. is this something bigger going on with tesla, or do the trade talks play a little bit of a role? >> if we look back at 2018, what drove the u.s. revenue was the model three was not available in china. they are hoping a factory in china to ramp up late this year or more likely mid next year up and rolling -- next year is
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when it will be up and rolling. china is the number one market for ev's. over 50% ev's sold in terms of subsidies widely available there. you also need to see tesla negotiate outright ownership of the factory. every other car company has to ,ave a joint venture structure so it will be unique to see the vision of china towards ev's and leverage the tesla platform. caroline: when will this come on tap in china? there are plenty of promises and we see elon musk slightly under liver on timings. >> he certainly has had someone looking over his shoulder the past couple of months in terms of the tweets and public statements, but the 10k out this it this year about and early next year in 2020 with the factory coming online. i think that is pretty ambitious, but we assume lay 2020 it would come online. according to the 10k, there's no
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government approvals. it this year and early next yearthere is no t would be paid for. romaine: two big issues, one is and he has shown he cannot get up to the scale. the other issue is competition. you have smaller players, but players that have a little more nimbleness than what companies in the u.s. would have. the smaller players have better access to capital in china today in terms of consumer confidence in auto sales. the smaller players have better access to capital in chinait's alarming when tesla is building billions of dollars of capacity to sell upwards of half a million vehicles at some time. the bigger guys, you need to watch the european competition. taylor: talk to me about competition, because we spoke with gene munster at the end of 2018 and he said tesla remains his top pick for 2019. there is more competition, but they can make their 50% market
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share in that electric vehicle market. that, that'sis healthy competition is good if you can maintain your on market share? jeff: healthy competition is good. the marketshare aspirations of maintaining 50% are aggressive. the key for tesla to maintain that level of shares and sell i-35 -- a $35,000 car, it is unclear when that's will happen. in terms of the competitive environment, the high-end with porsche and mercedes getting much more aggressive, jaguar is 30l, there is a void in that to $50,000 sweet spot of the market that, today, is not much penetrated -- not very penetrated. caroline: you poured through the 10k. thent to get your take on totality going on in terms of the highly visible company that a lot rides on its reputation, but its reputation is backed up
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by its behaving well. behaving well does not always happen. this seems to be a lot of risks surrounding its reputation. how do you judge that? there are lots of publicly traded companies that have reputational risk. this is a company that needs to keep on feeding it to maintain their influence. jeff: i've never seen a publicly traded company be so scrutinized on twitter as tesla is, but in terms of our concern, it is less on what the tweets are saying but it's what's consumers are saying in their ability to get a service apartment -- service appointment or spare parts. that is where you will see issues around brand and loyalty the potentially impacted. romaine: you talked about the sweet spot in the pricing of these electric cars. -- ae issue of production cost ofon issue or a the battery issue and getting the batteries down?
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jeff: it is a little bit of both. building 20% of your cars in the tent is not normal. the battery is the ideal number one bullseye in terms of driving costs down. that is where they have a strategic relationship with panasonic. they were able to take that cost on by using laptop factories -- batteries. taylor: you have a $200 price target stock, just about $300, got needs to make the stock lower in the next 12 months? peel back the data points in the 10k that came up this morning, it's about half of the profitability of the company coming from government subsidies, whether it is federal or state subsidies. those are not in place in europe and china. the next six months is important to execute international markets. investors see the saturation
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of demand in the u.s., that is the trigger point to break the stock. caroline: nothing like a 10k dropping at 6:00 a.m.. thank you, jeff osborne, sticking with us. with all of the concerns surrounding autonomous vehicles, is a very important advantage. technology is expected to be better at detecting troubled in our own eyes and ears. there's no worries of the dangers of driving drunk or texting behind the wheel for -- wheel. for auto insurance, this causes problems. this is a great story on the bloomberg today about how this will reinvent car insurance. romaine: reinvent it or get rid of it. caroline: a bit of both. romaine: anyone going to shut a tear for their insurers? caroline: it will be sold to the corporate's instead of the people. maybe the insurer can still be in there, but in a different demand? [laughter]
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caroline: the violins are out for romaine. coming up, protecting your digital assets. how one crypto startup is making another developer doesn't happen again. this is bloomberg. ♪
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,omaine: bitcoin is back up coming to its highest level in a month. the rally is pulling up a number of crypto related stocks along with it. bitcoin held its 200 day moving average and is trending higher in the channel. it's the first time the cryptocurrency has approached $4000. some people are citing jpmorgan which announced it would be
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developing a prototype digital coin to speed up payments between corporate customers. not everyone is convinced. an economist we did earlier today "in which way has the new jpmorgan crypto coin anything to notith crypto?" it is permission list and based in on trusted authorities verifying transactions, not decentralized, calling it crypto is a joke. caroline: quite a mouthful -- romaine: quite a mouthful. caroline: he likes to be negative on these things, but at the end of the day, crypto and blockchain is an area of growth. with crypto in the green, you will want to make sure digital assets are protected. when crypto startup is trying to keep another big dilemma from happening. this is known as caldwell it. its founder and ceo joins us now
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-- cold wallet. the founder and ceo joins us now. you are offering this insurance, what was the hardest thing to negotiate with those providing insurance, particularly coming from london. what went into your head to -- we have been focused on this problem for five years. we are a trust company regulated out of south dakota, division banking there. we started as a security company and have expanded. building a trust company is about building trust and safety. things people can count on set you can have peace of mind about your bitcoin and digital assets. the latest move is to add insurance on to that. this has been a troublesome spot for the industry, getting into the insurance market, because
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there has been no precedent for it. securing it has been elusive. this problem takes a long time to solve. security,at physical our digital security, how we operate things, all of our operating controls, audits, plans and sovery forth. taylor: who are your investors and do you anticipate funding rounds? >> right now, we are doing just fine in terms of funding. existing investors include goldman sachs, d r w, red point ventures, so a number of silicon street.eople and wall romaine: are people getting an individual amount of assurance based on their account or what they want to have protected in their accounts, or is this more a blanket coverage for all accounts in the pool? mike: one of the nice things about the technology is that we can change the way you store it.
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it's different than any other asset class before. deep coldused on storage. we segregate accountant to each of them -- into separate accounts for each of them. we have a cap, and there has not been cold insurance like this before. this is underwritten by some of the lloyd's of london. it's the first of its kind. , but we separate each person's account into separate wallets. caroline: it's difficult to understand what happened when it quadriga.uadra go -- you help insure against theft and hacking, would he have been injured in your situation? >> most people don't realize that this industry has grown so quickly in the last few years. many exchanges, when they started, said there were no banks or trust company's to count on.
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in the case of our accounts, this never could have happened. every account already takes into account having multiple accounts mlkycs, is directly programs. an id that a single person had keys, we write that out of the system. in this case, the insurance would not be relevant because we took care of that for years already. caroline: mike belshe, thank you. coming up, missing links. china is looking to become the new silicon valley. the blueprints are avoiding rather sensitive issues. we will discuss that next. this is bloomberg. ♪ is bloomberg. ♪
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caroline: it's time for asia ahead. china's plan to create its own silicon valley is generating optimism among the hong kong business community.
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key details remain unclear and some questions unanswered. shery ahn, talk about the greater bay area. shery: we couldn't have gotten a better name for this. it's nine mainland chinese cities. this is as good as it gets in terms of names. the economic benefits policymakers say will come from this is huge. especially, as every city has a different focus. hong kong is the financial and trade center, the cow -- macow being the trade of -- this would have a one tree dollar economy with more exports than the whole of japan. taylor: it says great in theory. one of the issues brought up is hong kong operates independently.
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how does this come together for hong kong? shery: hong kong is worried about this whole system because you are talking about this framework in place since the one country to systems. -- two systems. bemuch as this area wants to the next silicon valley, we are talking about an issue that has had segregation for more than 100 years. there were protests in hong kong as soonlitical powers as their parliament got involved. romaine: what made silicon valley silicon valley? ,t was having talent educational institution that produced the talent. what is the connection? is a macau shery: china wants to have this plan as a form of making it an
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innovation hub. as soon as the plan was announced, tech companies in shenzhen got a boost. they are talking about making this an innovation hub. china is a state-controlled economy. the focus is to have supremacy in technology, and they hope the combination of too former european colonies in the chinese city would lead to that. caroline: that's a conflict one. shery, thank you. for more on the stories, don't miss "bloomberg daybreak: asia" at 6 p.m. taylor: i'm looking at the fed as it relates to the media minutes. romaine: and samsung unveiled its latest galaxy sx smartphone. caroline: that's all for "what'd you miss?" romaine: "bloomberg technology" is up next. taylor: have a great evening. this is bloomberg.
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♪ this is bloomberg. ♪
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emily: i'm emily chang in san francisco and this is "bloomberg technology." next hour,n the while bitcoin has fallen off of the radar for many market watchers, demand is ticking up. we will tell you why. plus, walmart reports his best colder -- holiday quarter in a decade. we will check in on the health of the retailer and the outlook for slip cart. youtub


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