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tv   Bloomberg Markets Americas  Bloomberg  March 4, 2019 1:00pm-2:00pm EST

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china to follow through on a couple key promises. one is to increase the amount of american goods advise. another is to better protect intellectual property rights. the trump administration prior to tighten the six decade trade embargo on cuba. officials say the u.s. will allow some lawsuits to go forward that accuse foreign companies of using properties confiscated by the cuban government after the 1959 revolution. that could make investment in cuba more burdensome for companies thinking of entering the market. a key train service between india and pakistan reopened today and another possible sign of easing tensions between the two nuclear armed neighbors since a major escalation last week over the disputed kashmir region. the train operation left -- four indiadia today. pakistan suspended the service
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last week as tensions escalated following the airstrike tuesday inside pakistan. declaring the church court is not afraid of history" pope francis said today that he would open up the vatican archives on pope francis the gulf who is criticized for staying silent on the holocaust. vatican usually went 70 years after a term to open up the relevant archives but has been under pressure to make the documentation available sooner well holocaust survivors are still alive. 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. vonnie: it is 1:00 in new york, 6:00 in london, 2:00 in hong kong. i'm vonnie quinn. welcome to "bloomberg markets."
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from bloomberg world headquarters in new york, here are the top stories. insight? china and the u.s. hammer out specifics of a breakthrough trade agreement that could lift tariffs. defiance. the currency remained strong after president trump complains at a rally over the weekend. want to you which new york city neighborhood is among america's richest zip codes, and it is not billionaires row. stocks started out with a nice bounce. at this point, halfway into the trading day, you could call it a nosedive. taylor: we are down there the lows of the session, getting some positive comments about trade, comments from trump about nonethelessbut weaker. perhaps some profit taking after a big run-up.
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we are up anywhere from 10% to 20%. perhaps some concerns about the details within the trade deal. trump commenting that he wants a weaker dollar, and that is not happening. we have some strength in the dollar. in the last month, i would call it a range bound. take a look at the intraday chart of the s&p. at the lows of the session earlier. positive this morning on some of those comments on trade. and then all negative, as all the details we are still waiting for. i want to look at individual stocks moving markets. got gymboree's assets for about $34 million. theis trying to spin off old navy brand, so perhaps this is a play in the higher-end market, children's as well. you are seeing those shares take a hit as gymboree was pretty
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much a loaded with a lot of debt. are other earnings we looking at, salesforce coming out with earnings after the bell today. all the cloud providers are lower. oppenheimer and jeffries analysts are saying salesforce could be on the earnings. they see a lot of upside potential. endless have a price target 60 cents. dollar seeing some potential but still lower for some of the tech and cloud providers, dragging down the major indices. vonnie: taylor, thank you for that. the u.s. and china are reportedly nearing a trade deal that could result in the u.s. if china buyss, more american products and commits to protecting intellectual property rights. doning us now is shaun nan from washington, d.c. could it mean an end to the trade war? have's been clear that we
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been moving in this direction for a few weeks, months, going back to that dinner between donald trump and xi jinping. at the same time, we are hearing from the white house, from folks inside that there is still some important details to be worked out, that there is still a debate within the u.s. administration over how and when to lift any u.s. tariffs, and inn what it will take response, and then china has its own political calendar. xi jinping will be busy with the national people's congress. the real deal, if we get it, is not something that we will see for a couple of weeks yet, and that gets into questions of the substance of the deal, which will be with us for a long time. is this the end of the trade war? not yet. even when we do come it will not be the end because the big question will always be, hanging over this, will the chinese be
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living up to their commitments? vonnie: and what would be the enforcement process be? the wto has its own, so women that dynamic me? talk about the economic impact. studyhe weekend we saw a that displayed there is an impact already on the u.s. at least. we got two studies, the first really authoritative studies by academic economists, on the impact of the tariffs. both point to a net negative for the u.s. economy. a cost ofu mentioned more than $4 billion a month, not just in the cost of tariffs but in the lost efficiencies come the dead weight lost, as what companiesf
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are suffering. war drags this trade on, the more we will see these costs billed, and that could have political consequences for donald trump. that is one of the reasons why there is pressure on him to get a deal, and maybe not as good as some of the china hawks in his administration want. vonnie: the european trade commissioner is visiting washington this week as well. on that front, are we going to see any improvement in relations, anything that might progress that agenda? have had a really slow start to the trade talks between the eu and the u.s. part of that is because of procedure. the u.s. had a notify congress and it was not until january that they had authority to start negotiations. the eu is going through the same process there. preliminaryare negotiations, they have not really started the formal
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negotiations. that is slightly daunting because donald trump has threatened to impose auto tariff s on the eu, a huge export industry for the eu. we will be near some decision point on that in may, a deadline than that donald has to make a decision by. that may be too soon for these talks to get underway, and that raises all sorts of potential problems. vonnie: our thanks to shawn donnan. so how are markets reacted to this possible u.s.-china trade truce? let's ask barry bannister, the head of institutional strategy at stifel. how closely do you monitor these trade headlines? will the markets react if we get closer to this war ending? today is reaction partly due to the trade issue. seems look at it, charm to be desperate for a win and
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maybe signing a week to deal with do it. he is running in a position of weakness, i'm noticing the market in the health care stocks are getting hammered. maybe they are starting to price in some probability of medicare for all. when you look at the market, that is part of it. the other part is the fed. they are still in the drivers seat. they went too far on tightening, they have to backtrack. they have to cut rates. that will require more pain. vonnie: talk about those health care stocks. i noticed well care down 16%, others. is this a medicare for all trade ? related to regulation, drug pricing, heavy handedness of the government? barry: we have seen pressure on drug pricing but it is more than that. the market works on probabilities. now it's starting to price in a probability, something not
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negligible, about some changes to the model here in the health care for him. that has been one factor in the market. seems to be a800 level that the bull runs go to die. the market went through our target, we declined to raise it. we felt that a positive real rate, the fed was left with no good options and the pe multiple would fall to about 17 times trailing this year. for the most of last year, we were between five dollars and eight dollars below the street. our estimate is for the low 1.60, and we think that may come down. you think at something to eat between elections, all the hijinks leading up to it, will be priced in the market? early, but astle you say, health care stocks already reacting today. maybe it is not early at all. nothing in washington will happen without an enormous amount of almost civil warlike
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rancor. anyone who thinks we are going to raise the debt ceiling smoothly come summer into the early fall is alluding themselves -- deluding themselves. some of that is being priced in. there is a lot of uncertainty out there. we had already priced in a good bit of the trump and fed put. the market will have to pass to see how deep this valley is for earnings, how long the gdp weakness persists, and what tools will be employed to offset that. vonnie: the builders are doing pretty well today. d.r. horton, peltier, the group is up 1.8%. does that have to do with rates, or a separate story? homebuilders. barry: we have clearly seen with income somewhat lagging, the price gains in houses affected or affordability even when the
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mortgage rate hit 5%, you saw a severe drop in homebuilder , although starts prince have held up well. also shortages of labor. as the yield came down on the , we have seenear a rebound in the builders, which is something i've been talking about for a few months. i was not overdue that. bounce that is just a after being pummeled quite aggressively. vonnie: we get a lot more high-frequency data this week including payrolls. what is your outlook for u.s. growth, wage growth in particular this friday? barry: if you look at wage growth running in the low three , on and after pce inflation basis, the real wage growth was not a different the last two cycles. i'm not sure how much employers and employees really look through it and say what is your real wage growth per hour, not
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what is your nominal wage growth per hour. but i don't see that much upside despite all of the phillips curve proponents for wages. that said, when you look at the on appointment rate, it has bottomed already -- i think 3.7 in november. every time it has risen by 35 basis points on a three-month moving average, every time since world war ii, we have had a recession. if that continues to rise, we have to start pricing in a mild recession. i'll be watching the unemployment rate, real and nominal wages, a little less than the payroll figure. vonnie: always great talk to you. our thanks to barry bannister. coming up, president is renewing his attack on the federal reserve. complaining about rates and u.s. dollar strength. we will talk about monetary policy next.
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this is bloomberg. ♪ this is bloomberg. ♪
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vonnie: this isvonnie: "bloomberg markets." i'm vonnie quinn. attempt torump's blame federal reserve chairman jay powell for the hiccup in the economy have made a home -- come back, this time directed at the president's conservative base, as you your support his reelection campaign. a rally in maryland, he says the u.s. dollar is too strong, criticized i will as someone likes to raise interest rates. but many investors and economists are learning to turn out the so-called noise with the dollar continuing to strengthen today. the jeanna smialek is here with more.
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noise or not, that is a subjective monitor or what the president is tweeting. how likely is the president to get his wish for a weaker dollar? >> based on the analysis we are hearing, based on the story my colleague wrote today, not likely. u.s. growth looks much stronger and the data looks much stronger than what we are seeing globally, which should speak to a stronger dollar. the thing that could weaken the dollar, would make president trump and jay powell happy, because that would be a starter performance in europe, china, in these places abroad that are really imperiling the global economic outlook. if you see the slow down take hold in germany, china turnaround, you could see a slightly weaker dollar, and everyone would be happy about that. vonnie: how does the federal reserve have any role in this? it stays away from currency talk, but would like a weaker dollar, too? lead toate increases do
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a stronger dollar, all the sequel. it is interesting and you pointed out, this criticism is coming at this time. the fed in january just signaled it would take a pause on rate increases. in may be true that the fed is responsible for some dollar tightening, but at this juncture, they are not driving the story. vonnie: why is mmt in thetighte? jeanna: jay powell was testifying and asked about this, modern monetary daring. a country that is the reserve currency that is printing its own currency that has week inflation really has a lot of ability to spend out of debt. high debt to gdp ratios are not the crisis in places like america that they might be in a world where we could default. that youent here is can't have a little -- quite a
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bit more fiscal space than the political rhetoric would suggest. jay powell was asked about this and he did not directly contradict, and then he said the idea that you could just print debt in definitely is just wrong. which is the default, everybody has to say that. at the same time, the u.s. can print money and can print itself out of trouble if it gets itself into trouble. the interesting question here is how far that can possibly go. says a lot further. there is some historical evidence on its side, if you look at places like japan. toy have a really high debt gdp ratio, has been very aggressive in trying to spend itself out of a weak economy environment. and they have not seen any of these bond market crises that you would expect in that world eventually. so the u.s. may have more space. the question is how much fiscal
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space there is. mmt would say a lot. investors on wall street say maybe not that much. vonnie: jeanna smialek, thank you for that. and your city has landed a coveted spot on bloomberg's annual ranking of america's written -- richest zip codes, and it is not billionaires row. this is bloomberg. ♪
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vonnie: this is "bloomberg markets." i'm vonnie quinn. one new york city neighborhood has landed the coveted spot on bloomberg's annual ranking of richest zip codes. tribeca ranked in the top five, postal out all other nyc code. let's bring in shelley hagan, cowrote the story. it is fascinating.
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the zip code jumped 17 spots, the average income, $879,000, up 47% year-over-year. what accounts for the change? >> tribeca is a neighborhood that has very valuable real estate. it used to be industrial, manufacturing buildings. developers came in in the 1980's and converted them to residential use. we have seen lots of the trade building up. place, home tok the four seasons private residence, opened up. the penthouse there goes upwards of $30 million. valley the silicon codes are in the top five, as well as one in palm beach. fisher island off of miami, probably always there. >> last year again it was the number one spot. $2.2 million in average annual income. way higher than any others on
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the list. no one can just go to fishers island. you have to be a resident or guest. you have to get there by ferry, you cannot just drive. very exclusive, private. vonnie: and once you get there, you travel around by golf cart. york and california, you see themost number of zip codes with the highest annual income. in new york, why is billionaires row not on the top of the list anymore? top but not on the still is in the list along with a handful of other new york city zip codes. people may have lived in those places for a long time, not have extreme high income, older buildings. a variety of reasons. but they are still up there. vonnie: it is a great read, always love these stories. thank you very much. the hottest is a code in new york city. time for the latest bloomberg business flash.
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eli lilly will be one of the first drugmakers to effectively cut the price of a top-selling treatment in the debate over pharmaceutical costs. they will offer a half priced version of its insulin medication. that will give a better deal to customers to pay cash or those in insurance plans to pay a percentage. ysla will unveil if you model crossover vehicles in two weeks, prompting concern that will demand for the model three sedan. elon musk tweeted that since the model y will be 10% bigger than the model three, it will cost about that much more. a group of working mothers at amazon is trying to persuade ceo jeff bezos to provide a better backup day care benefit plan for employees. other tech companies have offer the benefit for years. bloomberg has learned that women have been collecting anecdotal evidence to show how the lack of
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day care support can the real careers. they are scheduled to meet with senior managers in the coming weeks. that is your latest bloomberg business flash update. coming up, no deal yet. mining rejects banks mold unsolicited bid. we have all the details. markets are still in that nosedive mode with the dow jones down 1.4%. the s&p down 1%. amongare plans and humana the stocks down 4% were more. consumer stocks down that much as well. more markets are next. this is bloomberg. ♪
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mark: i'm mark crumpton with bloomberg first word news. in alabama, rescuers are searching for victims, combing through homes that have been smashed to their foundations it and transmittal of dangling from
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trees. at least 50 people including children died when it later with winds of over 160 miles our ripped through a rural community. president trump spoke about the tornado during a white house event today. >> our nation mourns for the more than 20 lives lost and for the broken families they leave behind. i got a sonnet this morning and it was absolute devastation. it was terrible. you look at the areas affected and probably nobody made it out of that. it was brutal. mark: the tornado was part of a powerful storm system that made its way across the deep south, spawning numerous tornado warnings in georgia, south carolina, and florida. senate majority leader mitch mcconnell is a knowledge and opponents of president trump's declaration of a national emergency along the u.s. medical border have enough votes to pass a resolution aimed at blocking the move.
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the leader to reporters today that the president will veto the resolution and that it's likely to be sustained in congress. his remarks came after fellow kentucky senator rand paul became the latest republican lawmaker to say he cannot go along with the white house on the emergency declaration. another democrat has entered the race for the white house. former colorado governor john hickenlooper says he can bring people together to produce the progressive change that washington has failed to deliver. wasnents claim hickenlooper always too close to the states oil and gas industries. french president emmanuel macron says it is time for french and titrations to return to normal. clinical ties between the two have hit a postwar low in recent weeks to david fighting over several issues including european union budget rules and the future of a high-speed rail link. plus, italy's populist leader wants members of france to meet with members of the yellow vests
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protest movement. 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. live from bloomberg world headquarters in new york, i'm shery ahn. amanda: live in toronto, i'm amanda lang. we are joined by our bloomberg and bnn bloomberg audiences. shery: newmont mining rejects barrick gold's $17.8 billion unsolicited takeover bid. the deal would have created the world's largest gold producer. south amazon, former ceo of ibm, talks about why he thinks
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blockchain could be the solution to data privacy issues. brexit from trade routes? we will give you a hint. let's get you started with a court check on the major averages. we are seeing major stocks falling, the dow down 1.2%. the s&p following the most in six weeks. those stocksaking down, the nasdaq down 7%, all in the most since february 7. we see investors trying to figure out what will happen to the trade deal between china and united states viewed at the same time, concerns over global growth come as we have heard china could be cutting their vat tax rate by three percentage points. in order to support their economy. some haven buying and the dollar continuing to rise today despite the fact that president trump spoke about concerns over a strong dollar. course, if china
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does cut the vat, how will businesses spend the windfall, and consumers in the u.s., a question about how businesses were spending their tax reform windfall. is it all going to stock buybacks? the rhetoric has been driving stock markets in the last year or two. take a look at this compound chart. it shows you that although buybacks are having a record, that yellow bar is capital expenditures. that is also at a multi-year high. while companies are definitely spending money to buy back their shares, and that is having an influence on stocks, we are also seeing it do what you would fit with do, investing in plant and equipment, things that make their business better and more profitable, and hopefully more efficient down the road. another story we are following, resulting in a warning from philip morris today, about the cost of litigation. hitsubsidiary in canada
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with a $15 billion ruling from a quebec. just one of many multibillion-dollar rulings that are still on the docket. this one was a class action for smokers in quebec who argued successfully to a higher court that these companies hid the risks of smoking and addiction level of cigarettes. $15 billion. the analysts of these companies say if all of this goes through, they will start to write off the cash value at the major companies derive from their canadian subsidiaries. shery: because of this ruling, could we see other canadian provinces that are suing this company prevail as well? we have a similar issue here in the u.s. with the supreme court rejecting some efforts by big tobacco to derail some of these lawsuits from smokers in florida. these will take years to get solved, but the question in the meantime is how this industry relies less on those traditional
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business realms. let's continue our discussion on these companies and what they are doing in the mining or, gold. newmont mining saying no thanks, rejecting in unsolicited did from barrick gold that would have created the world's largest gold producer. goldbergining ceo gary weighing in earlier today. >> a parent up with barrick would expose chair is too risky assets, in a risky operating model. there is a better way to do that through a joint venture structure that can deliver the value of the synergies out of our nevada operations. more, let's welcome deals reporter scott deveau in new york. we had heard reservations and serious doubts coming from newmont from the beginning, so is the surprising? >> not surprising they would
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reject it but they came back with a con proposal, which were not expecting, for a joint venture in nevada. that isone thing striking about this exchange is help personal it is. some personal attacks, newmont saying that barrick's bid was ego driven, a picture of the ceo in their presentation. given the tone of this discussion, do you think they can go forward with a joint venture? many believe it makes sense if they can get it done. >> money always trumps egos in the end. newmont and eric have had a long history dating back to 2014 of exchanging pretty bitter words back and forth. ultimately there is a great deal fromlue to be recovered this joint venture in nevada if they were to proceed. i don't think it concludes that, but it will make it more difficult. amanda: of course it would allow them to define cost savings in
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that statement also go ahead with newmont's gold did. is that something the market would favor? benewmont thinks that will in the interest of shareholders. generally, a hostile no premium bid has problems getting through with investors. will have a barrick lot of success as it raises its bid. of course it has said it will not. if you look at the history of hostile no premium bids, there is not a very good track record. cricket your thoughts on this today. the huawei case is heating up in multiple ways. the embattled chinese electronics giant gearing up to sue the u.s. government, according to a report. down,is also doubling accusing canadians of spying. we have more on these escalating tensions with our canadian reporter. strands here. there is the tradition hearing that will be getting underway.
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cfo is suing on some due process issues. sound like there is a ?ase to be made she was apprehended by border officials, maybe they did not read her right's. running out of information quickly, but maybe it sounds like there were some due process missteps. >> it is early days. it looks like this will hinge on whether border guards have the authority to exercise their power, whether or not you are about to be arrested for someone else. she essentially said they put on their border and immigration hats, went to her devices and interrogated her, before putting on their mountie cap interesting her. you can see this full-court press by huawei to really push , not only in the u.s. but in canada on this issue. to what impacts
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it will have on the extradition hearing. she may try to use the civil case to buttress the claim that either the judge or trudeau did thise minister through political motivation. shery: of course, two other canadians were seized in china. what have we heard about them? >> we had not heard about them for quite a while. three days after canada agrees to move forward with the exhibition hearing, china says one of them has been accused of stealing state secrets, and then the second canadian was helping him. this is the first time china connected the cases. that represents an escalation. analysts think those two wl guys who were arrested nine days ung was arrested in canada, many believe it was an
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implicit negotiation or bargaining case. shery: here in the u.s., we see media reports that huawei may be filing a lawsuit against the u.s. government for not allowing federal agencies to use while he products. any information on what is happening here within the u.s.? >> it looks like it will be filed later this week in texas where the office of the company is. that goes back to that full-court press question. it will make sure authorities in north america half their ducks in a row. you can see information or documents coming out of the secondary cases that could affect the original u.s. prosecution against huawei or something else. amanda: thank you so much for that. still ahead, can block chain technology succeed in an internet increasingly devoted to protecting user privacy?
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has a newd ceo of ibm paper on the path to coexistence. we will discuss next. this is bloomberg. ♪
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shery: the general data protection regulation instituted by the european union wants to make privacy a priority online. but can technologies like blockchain, designed to anonymize data, coexist in this environment? the center for global enterprises is that with this latest research on the topic. joining us now is sam palmisano, .ormer ceo of ibm we see some people say blockchain technology are fundamentally in it --
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incompatible with gdpr. what did your research fine? >> it depends on the situation. many companies today are looking at digitizing, especially their value chains, supply chains or partners around the world. they're looking for alternatives to have privacy with all of that information. enhancementlf needs of blockchain technology. there are cases that we have done which suggests it works in this environment. here is where it works well. we have a management decision roadmap to take you through that scenario. other cases where it will help you comply with the gdpr. david let a lot of the intellectual work associated with that and he may want to comment on the cases that we did. shery: david, where are those incompatible?
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what are the risks if you don't close the gap between data privacy and protection with blockchain technology? >> the risk is pretty high. results are the consequences of noncompliance with the gdpr. can be huge penalties, large fines. the example of where this comes up stems from the gdpr guarantee asthe right to be forgotten an example, which is a powerful concept though wood says people can have their data raised if they want. blockchain fundamentally doesn't erase data, it never erases data. so these two regimes become incompatible on the surface. youda: sam, i want to ask if what we are nearing an on here is, so far, the real use cases for blockchain are in private networks. applications for businesses that use it for their own systems where the control all the pieces. the holy grail of blockchain is across public networks. public, distributed
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network that cryptocurrency sits on. is that what we are talking about here? with gdpr, but once you get to the public realm, it gets more complicated? >> it started with the private initially. it can work, their alternatives that work for the private networks. you would create, as you do in partnerspanies, their as well, distributors, suppliers, their own private networks. in that case, it is a solution to the gdpr requirement. on the public case, it's more complicated because of the nature of the information out there and how it's being shared. a more difficult use case to close. i know a research going on right now to address the public cases come public market, however, that is research. i don't know of a solution that has been found. david, one imagine some of the leadership on how to
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square this circle is happening in europe. is that right or is the u.s. playing a leadership role, figure out how to make privacy central to blockchain technology? david: right now, europe is definitely in the lead, the u.s. has no legislation, no regulation that is on par with this very muscular system in europe that we call the gdpr. time, david, same you have these new contractual agreements, information sharing agreements. how do you manage this in a global network environment? david: it is challenging. one of the things that we comment on in our paper is the use of a governance framework is a proven way to get gdpr to work blockchain. a network of companies can get together and form a joint venture, if you will, that describes how they will manage put on thethey will blockchain, what they will not put on the blockchain, and how they will get people when they
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want to be forgotten. the key to that, for that information and how you manage the individuals information within that structure. shery: what about the cultural challenges of changing the fundamental view that employees have to face in this shift in the digital environment that you have to adjust? you lead ibm for over 10 years. did you face something automatic is this? back in time, we all face the issue of cybersecurity. we call it the hygiene of cybersecurity. that began because of hacking and everything that occurred. if you were at ibm, they would try to penetrate your network 2 million times a month. now it's extended to data privacy. i would argue that is legitimate. you should have a culture of privacy. people in the organization should understand how the information is being used, to make sure it is being used properly, and that your honor your clients. the company is to serve their
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customer set. it could be a government, private sector, it doesn't matter. you need to be respectful other information, and do that in a way that your value proposition, an extension of your brand. if you can provide the security and privacy's, i would call the economic enhancement relative to your competition. amanda: great to have both of you with us for this. retired chairman of ibm, sam palmisano, david kappos, thank you. they made waves when they filed for the 0% etf. eric balchunas is with us now. talk about why jpmorgan would go zero feet, and how big of a trend this might be. >> to be clear, it is not definite that they will have a zero etf, but jpmorgan filed in december for a u.s. equity etf. as part of their beta builders
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line, which is part of their cheap line. but why were they put something like this out unless they were going to go zero? they could go one basis point or two but you can get yours exposure for three basis points. jpmorgan has been very aggressive. i don'tophia, which think will resonate much beyond their own client base, because they are not well-known, the index it is tracking is not quite beta, a gross type index. and it is only a waiver for a year. those three things, i don't think it will catch on. if jpmorgan comes out with an etf that is zero, that would bring with it a lot of credibility you would get market data. they have seen a billion dollars basically in assets in the past couple years. they are very aggressive. i would not be surprised if they do it. shery: sofi stole much of the pr thunder from jpmorgan. how much capital inflow are we seeing in these etf's, how much of a game changer could this be?
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eric: jpmorgan was fifth inflows last year but they started 19th in assets. they are punching above their weight. they are being very creative in several areas. etf's are jpmorgan and the account for about two thirds of the huge inflows. if they come up with this, it would add a lot of tailwind to them. jamie dimon has said we are trying to play catch-up. we realize we miss the boat a little bit but we are trying to make up for it. it would probably inspire some others to follow suit. thanks so much, eric balchunas. with us from princeton. minder, you can catch eric along with scarlet fu every wednesday at 1:00 for "etf iq." forget about your avocado toast or banana smoothies. what would a no deal look like? this is bloomberg.
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shery: this is bloomberg markets. i'm shery on in new york. amanda: i'm amanda lang in toronto. a lot of talk about whether britain will end up with a no deal scenario with brexit. it's worth remembering what will happen in the short-term. we are calling this in no deal brexit diet. how with the food chain be affected? , trade leads to the law of comparative advantages for the brits emma that meant lands, peas, that is what they'll be eating. what will they not get? avocados, bananas, parmesan cheese. all of the stuff that they let others produce better and cheaper. about the u.k. producers 62% of what they eat, so some of those products will be included in their diet, but some will not, especially fresh produce
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will apparently be some of the things that is harder to get. interesting. if you like going to the u.k. and eating fish and chips, fish, apparently that cod is imported from ireland. you could get lobster and chips because they get tons of fresh shellfish. fish.rs and g tv is her library. you can find our charts, anything on our programming is there. this is bloomberg. ♪ you.
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this is beyond wifi, this is xfi. simple. easy. awesome. xfinity, the future of awesome. mark: i am mark crumpton with bloomberg's first word news. rescuers are searching for victims after a tornado ripped through the rural alabama community and killed at least 23 people. a tornado struck on sunday.
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the winds were believed to be 100 city miles or higher. it was part of a powerful storm system across the deep south spawning ne numerous tornado warnings. the sheriff says the dead include children and the death toll could rise. president trump said the nation mourns the loss of life in alabama. the house judiciary committee is expanding its russia investigation. the panel is asking for documents from more than 60 people in the trump administration, family, and business. the chairman says it is very clear president trump obstructed justice. leaderezuelan opposition arrives back in venezuela to a new campaign to topple the government of nicolas maduro. he landed at the main airport. he said

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