Skip to main content

tv   Bloomberg Markets Americas  Bloomberg  March 15, 2019 1:30pm-3:30pm EDT

1:30 pm
in effort toon was .ircumvent congress the president will speak from 3:30val office at washington time. authorities in new zealand say the gunman behind one of the mosque shootings that left 49 people dead today tried to make a few things clear in a manifesto he left behind. he is a 28-year-old australian white nationalists who hates immigrants. he was angry about attacks in by muslims.trated he wanted revenge and to create fear. he also live streamed to the world his assault on worshipers at a mosque in christchurch. >> as soon as we know any different, we will let you know what is going on. there is a lot of speculation right now and all we can do is trust the police to do what they
1:31 pm
do best in to support them and the directions they have given us. thank you for your time. i am really sorry to be here with you today. >> four people were arrested but authorities say only three were believed to have been involved. national security advisor john bolton is taking exception to north korea's out allegations createdand mike pompeo an atmosphere of hostility and mistrust at last month's nuclear summit in hanoi. the vice foreign minister of north korea said today that president trump was willing to talk but was influenced by uncompromising demands by pompeo and a bolton. he says that gangster like stand in washington will put the situation in danger. john bolton spoke to reporters today at the white house. that is inaccurate, but the president is our
1:32 pm
decision maker. i have seen the statement you are referring to. i spoke to my south korean counterpart and we discussed their reaction at our reaction. to speak further within the u.s. government before responding. >> at the state department, mike koreansenied north version of what took place saying at the state department, they are wrong about that and i was there. officials in france have begun analyzing the flight recorders if the obitsh airlines plane. the reporters were damaged in the crash when it is unclear whether data can be retrieved. ethiopia, authorities are collecting dna samples from victims family members to assist in identifying remains. all 100 57 people on board the plane were killed. global news 24 hours a day on air and at tictoc on twitter powered by more than 2700 overalists and analysts in
1:33 pm
100 20 countries. i'm mark crumpton. this is bloomberg. ♪ >> i'm vonnie quinn. >> i'm amanda lang. welcome to bloomberg markets. here are the top stories. is shaping uprch to be one of the busiest of trading days of the year. air canada scraps its financial outlook for 2019. that after the grounding of the round -- boeing aircraft. why is more like a model jan.
1:34 pm
investors appear underwhelmed. >> let's get a quick check on the major averages. the s&p 500 is up. is responsible for most of the thousand gain. yield, it was sent down further. at some money going into treasury but we are recovering the 260 spot now. at anm looking interesting correlation between the dow and s&p. we often talk about the dow as the narrower gauge. often about how oddly constructed it is. while there are times of great overirgins -- divergence, time it is a closer to one correlation.
1:35 pm
very close to highly correlated. instead of being different one broad index and another narrow gauge, they tend to track very closely. >> one is market cap weighted and one is price weighted. one analyst called it one of the 20 craziest investing fax ever. >> what did start as a slow week is poised to end with a bang. the s&p is at its highest level since october. a surge in volume is connected to the expiration of futures options. the event happens every quarter. it typically coincides with the rebalancing of the s&p 500.
1:36 pm
always a volatile trading day. interesting to see the action in the market. anything surprising about what you are seeing on this quadruple witching? >> it is important to keep in mind that it is happening. we saw a surge in volume right out of the gate this morning. far, we are still seeing higher volumes. the dow is 56% higher than normal in the last 30 days. you have to keep in mind that this is happening. it just reminds investors that it is hard to take away any pattern. anything from this week. it is a bit of an off week because of these expirations.
1:37 pm
if >> i.t. is an interesting sector. we have major earnings reports. >> broadcom last night, we have to think about that. not just reaffirming its outlook but updating some of the fears that the chip demand cycle is coming lower. they said they expect demand to pick up in the second half of the year. semiconductor performance is surging today. was a big lift to tech this week. out of america coming upgrading the stoxx. that gave apple a boost. apple helps lift tech. tech is outperforming the s&p by the most since may.
1:38 pm
was the best performing sector this week. whereare talking about stocks would go. where is that? >> there is a debate over where earnings go next. we have heard it many times over the past couple of months, we have seen large earning downgrades that the first quarter is probably going to see negative growth. that is what forecasters show. we do can do you to see revisions to the downside. we are seeing small downgrades. that is going to be a question as we get into the first quarter earnings season whether or not these companies are going to be or if this is going to be a continuous narrative as we get into the second quarter and more-quarter and if it is than just the first quarter where we see revisions lower.
1:39 pm
now turning to oil. there is an opec meeting on monday. it comes amid pressure from various sources including president trump. let's get a preview. what is the consensus as to what will emerge? opec and atween non-opec producers. we will watch for whether there are signals, headlines, news that saudi arabia leading opec is going to decide to continue ther output cuts into second half of the year. they have shown their commitment to the deal. itave said they will see necessary to continue the cuts. it will be adjusting to see if other members are on board.
1:40 pm
we can show you the bearish with where oil production and prices go. >> this can be a number of things and reasons as to why investors are getting so short on this etf. it could be that oil is popping out. we have rallied 35% since the december low. that could be one reason for the short interest. it also could be investors making bets around the opec meeting and deciding whether they are going to see positive or negative news come out of it. thehat could up and consensus or what people are anticipating?
1:41 pm
>> opec seems to be in agreement that they are committing to this deal. trump has tweeted that he is going opposite of what opec is claiming to do. prices are inl for wti, it is still not high enough to balance the different government budgets. saudi arabia and other producers had to keep it in mind even though trump has been tweeting. >> still ahead, with the boeing models out of commission for now, how airlines are adjusting and filling the gap. this is bloomberg. ♪
1:42 pm
1:43 pm
1:44 pm
>> this is bloomberg markets. >> i'm amanda lang in toronto. halting deliveries of its 737s. the playmaker may be able to roll out a software update for the stall prevention in as little as 10 days. airlines are still struggling to adjust. air canada today suspended its financial outlook for the first quarter as well as 2019 signing these uncertainties. a senior analyst for bloomberg intelligence is with us. i want to start with the software update. it will make a big difference to airlines if this is a 10 day problem. >> i agree. i'm not sure i am is hopeful. what i hear is the software will one sensor.an just
1:45 pm
it will take a couple of sensors. what we have heard from pilot putss is that this system a heavy workload on them at a time when the airline -- airplane is low to the ground and at take off. i'm not sure the just a software update alleviates that load and of the challenges of a shutting the system off. we will see. if that's the case and it is not enough, our planes too complicated these days? thiseing certainly made airplane more complicated because in the modification, they push the engines forward which changes the center of gravity. think the plane that either should be run without
1:46 pm
computer assistance -- it should be able to run without computer assistance. i don't think it's not complicated that it can't be run without computers. it is probably a safety set up modification to make sure the center of gravity is more benign but that would increase the weight of the airplane and take away some of the economics. >> i have been looking at reports filed today. you would be familiar with them. it seems as though pilots have reported many different types of concerns with this . the manual not being as good as the old one. they didn't feel prepared to fly this plane. is this going to be more than just a patch?
1:47 pm
they pushed the engines forward in this airplane and that changed the center of gravity. boeing was looking for this system to compensate for that. they were doing that because they wanted to minimize training to transition from the old version to the new one. i think in the future, people will look closely at your onlity for the type rating to airplanes like this. require present or boeing to make changes to the airplane -- frame in this airplane. another interesting thing is as airplane engines get more and more efficient, they are putting larger fans on them. means the engine cannot fit under the wing. it reminds us that we are at the end of the line for the modifications.
1:48 pm
boeing needs to think about in all-newre, building an narrowbody airplane and that will take a lot of transition cost to get pilots to train to something like that. note, is there any prototype out there for what might come next? i have not released prototypes on it. i'm sure they have plans in the office they are working on. as of right now, they are not showing us. >> coming up, tesla shares are turning the opposite direction today. elon musk has unveiled the only model y crossover. the roadnot see it on until next year. this is bloomberg. ♪
1:49 pm
1:50 pm
1:51 pm
>> this is bloomberg markets. >> i'm vonnie quinn in new york. the big unveiling. elon musk took the stage last night to introduce the latest electric vehicle the model y. the late release of the new rekindled concerns about tesla's cash position. what are your impressions of the model y? i am not a big fan of the exterior of the model x. y, i thought it looked great. i am sure it is going to do well.
1:52 pm
will seekg that it seven with that option. matter to get it out there and get it for sale. >> the big question is can they get it out there and get cash generated in enough time? will this hit on that front? the big concern with tesla is whether they can execute. i think the next couple of years, they are entering a delicate and critical transition phase going from niche premium to high-volume mass-market and premium. that takes a lot of capital to do. you have to have these forlopment and launch costs the model y, the pickup truck, the second jen roadster. he talked about doing a $25,000 car also. all that takes a lot of money. you don't have revenue coming in.
1:53 pm
musk has been saying we don't need to raise capital again. i think some are skeptical about that. >> the market seems to be sanguine about that. it's not like this is a major selloff. the market still was is to be a great story doesn't it? >> i don't think there is any reason for a huge selloff today. it is a good looking vehicle. we knew it would not be for sale right away. for it too reason take 10 or 20%. buy the rumor, sell the news. you have a problem of it gets harder and harder to blow people affordablee a more tesla is not a novelty anymore.
1:54 pm
the stock has always been priced for perfection and that is hard to deliver on every day of the year every year. >> rather than being a novelty in general, tesla having no -- normalized this stays -- space now faces competition. >> it is going to be very interesting over the next few years how consumers decide to do over a keep buying tesla german car or to the legacy automakers who can mass-produce faster, do they just drown tesla out? it is going to be interesting to see. think after a while, the vehicle experience will be more important than the brand. -- i aminteriors to me more old school and find the
1:55 pm
german interiors more luxurious. when you look at the range, tesla has dominated and that front for a long time. the germans need to catch up. the 240 price target, that is 10% lower than where we are. what would be the catalyst to bring it down to 240? anto be fair, it is intrinsic value rather than a price target. we are very long-term focused. tesla is tricky because we have to put one single dollar fair value estimate out there but the stock is so volatile and there in some he risks up and down -- you have a lot of governance issues with the sec investigations. then the execution risks we have been talking about. probably seewill more concerns about the balance sheet in first quarter if they end up burning cash in q1. hen musk came out and said
1:56 pm
was less optimistic about first quarter saying they are going to lose money. how much cash they burned remains to be seen. >> we only have a few seconds. is the volatility alone enough to keep you advising people away from the stock? cant is only for people who put up with a lot of headline risk. due to things like what we saw last year. >> great to have your thoughts on this. bloomberg users, you can interact with the charts you have seen on the show at gtv . this is bloomberg. ♪ this isn't just any moving day.
1:57 pm
1:58 pm
this is moving day with the best in-home wifi experience and millions of wifi hotspots to help you stay connected. and this is moving day with reliable service appointments in a two-hour window so you're up and running in no time. show me decorating shows.
1:59 pm
this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. calling itealand is a well-planned terror attack. at least 49 people were killed and a dozen more wounded and attacks on two mocks in
2:00 pm
christchurch -- mosques in the city of christchurch. three were believed to have been involved. police found two homemade bombs attached to the vehicles used by the suspects. are skipping class to protest failures by their government to take tough action against global warming. were one of the biggest climate change actions yet. the coordinated school strikes an activist toy begin holding solitary demonstrations outside of swedish parliament last year. offesa may holding to pull -- hoping to pull off a rescue of her deal after the parliament voted yesterday to postpone
2:01 pm
brexit. the prime minister plans to spend the next few days trying to support opponents the withdrawal agreement which parliament has resoundingly defeated twice. ready to bes not sentenced because he is still helping with several investigations. that's according to a new court filing in robert mueller's probe. inis a central figure federal probes in new york and to president trump's inaugural committee. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg.
2:02 pm
caroline: i'm caroline hyde. scarlet: i'm scarlet fu. this is "bloomberg daybreak the close." caroline: technology shares surging after a strong earnings report from broadcom. facebook is in crisis again. livestreaming criticized after shooting -- all that and so much more, coming up. sticking with technology, we have breaking news crossing the terminal. u.s. attorney general's said to -- u.s.t for steps's
2:03 pm
takeney generals set to their first steps toward probes into big tech -- focusing on antitrust action going forward. this investigation has been mounting. the justice department has been following up. scarlet: google really taking its gains down. almost unchanged at this point. facebook not having much of a reaction. it is already lower in trading today as well. in the broader markets, not seeing too much major reaction in the major indexes. you have tech and utilities trading on the downside. volume 20% heavier than the average. caroline: it all seems to be on the risk on trends from china's
2:04 pm
renewed commitment to stimulus. that gave effort to buying across asia and europe. top,onductors at the broadcom instilling some excitement into the chipmakers. scarlet: all 26 members of etf are higher. with china recommitting to stimulus, the higher price for treasuries means lower yields. at one point, the 10 year yield falling below 2.6%. let's get to our market reporters. let's dig in today's breakout for the s&p 500. this is a six-month chart. you see the basic range between 2600 and 2800 -- there's some mixed messages here. we are breaking right above that but thatl, 2817,
2:05 pm
congestion will bring 2900 -- this is typically a bearish pattern. the uptrend is reversing. that would bring a move down toward 2600. , we canke a closer look see that even though it's a higher height, it is connected you seeast high, a move to the lower lows. who knows? stay tuned and watch these levels. kelly: i'm checking out boeing and the industrials. boeing, shares up 2% because of the timing of the software update. the week was not pretty. shares off about 10%, the biggest weekly decline in three years. boeing is a big heavy weight the industrials sector. the index is up this week
2:06 pm
nonetheless, still the best performer on the year, up 16%, the biggest contributor to that rally had been mowin boeing. lisa: i want to look at the mixed messages in the yield curve. nearly the most negative since 2007. often means arve recession -- take a look at the gap. it's been rising to the highest 2017, indicating expectations for faster inflation over the next 10-30 years or the consequences of a steeper budget deficit in the u.s. either way, not sending a clear message with respect to recession risks. caroline: great perspective. now, more on that breaking news
2:07 pm
sethe u.s. attorney general to take early steps towards the investigation into google in particular. state officials focused on antitrust and continuous political concerns. let's get more with joshua from businessweek. how much of a surprise is this? it will be catalyzed by jeff sessions. it sparked a lot of investigations among other parts of the attorney general office. >> i don't think it's a huge surprise. anyone who's paid attention has noticed increased concern about technology companies generally. google has been one of the main ones relating to consumer privacy and the use of market power in inappropriate ways. fallwing a meeting last with jeff sessions, states attorney general started taking
2:08 pm
coordinate steps to lay the groundwork for future techtigations into the industry generally and google specifically. scarlet: google well aware of this. has it taken a steps to sway the concerns? >> google has been in a damage control mode for quite some time. scarlet: reactive rather than proactive? >> the idea that google has some -- isy issues that will not new. google has been trying to tamp those things down. it has taken specific steps on this in particular. we know these investigations are becoming a reality. do we know what sort of regulation is being debated? concerns whenome it comes to antitrust, what steps might they take?
2:09 pm
we've had all confirmations being made by would be presidential hopefuls about breaking these come he's up. -- companies up. >> you would see subpoenas issued to the company. if that progressed, you might see a lawsuit. states started a similar investigation six or seven years ago into google that developed into an ftc investigation. the ftc decided not to pursue a lawsuit against google. this would be a potential second round. scarlet: you are seeing alphabet shares fall in response to the headlines. thank you so much. let's turn to the broader markets. technology still in the lead here in the overall market rally. vincent is bloomberg's macro strategist. when you look at what happens,
2:10 pm
the fx is where the action was, all centered in london with the brexit vote. now, we've got what the market wanted -- a delay. >> it's a positive delay. talkseally encouraging with hammond, with the attorney general and ministers of the cabinet giving markets a good feel going in. this is a big hurdle for make. may -- for may. caroline: it's interesting that the pound is up 1.7% on the week. the best performing g10 currencies since the beginning of the year. what about when it comes to the dollar? today's story has been dollar weakness. >> the dollar has been flatish to sideways.
2:11 pm
we've seen idiosyncratic moves within the currency. earlier in the week was a sale based on risk moves. haven assets slowed into the swiss franc. we've seen good flows into central emerging-market currencies. the ruble despite sanctions on . the dollar is mixed. caroline: the fastest decline we've seen since march. msci emerging market index up 2.5%. china sticking to stimulus or reaffirming its commitment to stimulus with that tax cut. why is this being celebrated by investors? >> people are looking for some good news somewhere. it is still going to come. for theax cuts in u.s. second quarter, third quarter,
2:12 pm
then fell off. do we see a repeat with china? do they pull back on monetary's t stimulus? if they do that, we won't get the kind of stimulus they want. they are a highly leveraged company. -- thaey are a highly leveraged country. scarlet: caroline: we have a rally in stocks and bonds. hope inhere so much equities? >> some people point to a seasonality factor. seasonalityarter has shown weakness in u.s. markets, weakness in earnings, which is overcome in the second
2:13 pm
half of the year. stock market traders are currently looking through that. bond market traders are seeing the weaker data. we have much more coming up. this is bloomberg.
2:14 pm
2:15 pm
caroline: it has been a tough week for facebook, now even tougher when you bring in the humanitarian crisis in new zealand. we had the shooting over there. we will be talking more about that with bloomberg technology. putting aside a very sad situation with shooting at a mosque, once again, this embroiled social media because this was live-streamed. this point is at
2:16 pm
where no matter what happens in the world that is a big deal, it's going to happen on facebook as well. mass shootings are one of the big things they often have to deal with. head ofwith a facebook content policy for my biz and story- my businessweek this week. this kind of thing happens once a week. while they have policies in place to handle it, there's a disconnect between the rules in reality. scarlet: this will invite more scrutiny from government agencies, as it should. thing to bring up another that happened to facebook this week. the kamil investigation into the data deal made with other companies -- criminal investigation into the data deal made with other companies. >> it is part of the full scope
2:17 pm
of the probes into facebook now. ftc, the u.k. government, the european beta commissioner -- this is a company currently under fire. you saw the attorneys general -- the criminal probe is an escalation of what we've seen. this is a year that facebook is going to have to answer a lot of these questions in a way that is more than just promises. businessweek front cover story, the issue of toxic news and how they tackle it is a must-read. product,, the head of leaving. it seems to be the turn facebook , driving someake of their key players out. >> all of these problems are
2:18 pm
connected. you have the data problem which has led to zuckerberg's decision to build the future products in a crypt and way. -- in a more encrypted way. newsfeed is what chris cox is known for creating and growing within facebook. he believed we need to have this personalized version of the platform. facebook has response billeted to amplify the good in the world -- responsibility to amplify the good in the world. it's going to make it harder to deal with these societal problems like violent videos spreading. scarlet: thank you for joining us. michael packer is the wedbush securities managing director first.
2:19 pm
-- managing director for equities. posting across platforms before the incident. we know the challenges faced by these companies and monitoring social media real-time. our sites unable to do it or unwilling to do it? >> it's primarily the former, they are unable. a violent act was kind of born on the internet. i don't think the internet made this guy do it, but the idea that he could be instantly livestream,ould tweet about it, right his manifesto. nevert social media, he would have had that kind of access to publicity. responsible to
2:20 pm
eradicate that kind of content. they don't do a good job of that. i'm talking about hate speech. the part about unwilling to do it -- jack dorsey is pretty famous for saying he's the keeper of the first amendment flame and anybody should be able to say anything as long as it's not violent. guys like this should be stopped from speaking out with hate speech. week type ofe a activity. i don't know the number, but there's more than one billion posts a week. this is a one in one billion type of event. there's no type of software that will spot this immediately. idiots whoosted by think it's funny or cool to repost. .t is like whack-a-mole'
2:21 pm
i don't think they will be able to effectively stop this stuff medially. does she medially -- effectively stop this stuff immediately. they should have a seven seconds w switch. perspective -- it's almost an impossible task. nevertheless, the hate becomes even more intense -- many want to see action taken. we just had the breaking news story about how the attorney looking more focused at alphabet. what do you think about regulation when it comes to facebook, google, amazon? is that becoming more real? --there's multiple levels
2:22 pm
one is antitrust. none of these companies is a true monopoly. microsoft was the operating system are 96% of the world's computers at the time. facebook isn't the only place to post videos or pictures of your kids. google is far from a monopoly. amazon is far from a monopoly. antitrust has a zero chance -- if elizabeth warren is so interested in making this happen, she should sponsor legislation. the second level is privacy. that is a real concern. that's what they are looking at. it's an open question whether sell our dataites with our names attached. i don't think anybody knows i like porsches.
2:23 pm
they know my pc looks up porsches on google and they send porsche adds. i don't feel violated. it's incumbent upon attorneys general to make sure they are protecting their citizens. the third level is maligned content. these sites have an obligation to get rid of that and do whatever they can to keep it from surfacing. the first step is to just get rid of bad actors. i would ban anyone who posts hate speech. caroline: we thank you for your expertise. findsng news -- injury apple has infringed on three qualcomm patents. qualcomm coming back down, still up 1.2%. qualcomm saying it has won its
2:24 pm
first u.s. jury trial in the global fight with apple. apple taking a bit of a hit. gains across tech land. this is bloomberg. ♪
2:25 pm
2:26 pm
scarlet: some breaking news. 1%,comm shares getting apple taking a hit -- a jury has awarded qualcomm damages after finding apple infringed on three of qualcomm's patents. this is bloomberg. ♪ you.
2:27 pm
2:28 pm
all of you. how you live, what you love. that's what inspired us to create america's most advanced internet. internet that puts you in charge. that protects what's important. it handles everything, and reaches everywhere. this is beyond wifi, this is xfi. simple. easy. awesome.
2:29 pm
xfinity, the future of awesome. will sign therump first veto of his presidency today after congress voted to
2:30 pm
terminate the national emergency he declared at the southern border. he said the declaration was an circumvent congress to get more money for his border wall. he's expected to sign the veto. the senate judiciary committee says it will investigate a claim that justiceabe department officials once discussed using that when he fits amendment to remove president trump -- wendy fits amendment to remove president 25th from office -- the amendment to remove president trump from office. they discussed bringing the cabinet together to consider using the amendment to remove the president. the u.s. treasury's amping up the pressure on russia over a november attack on ukrainian ships and soldiers. the government is sanctioning a dozen russian individuals and
2:31 pm
defense firms involved in that dispute. stephen says russia continued aggression against ukraine cannot go unchecked. -- a russianessmen businessman is seeking a court order to have the sanctions lifted. 20 people have been confirmed ind in that school shooting -- school collapse in nigeria. the school was operating illegally. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. caroline: let's get more on that breaking news. qualcomm has had its first victory in the u.s. jury trial against apple.
2:32 pm
let's get more analysis from bloomberg technology. $31 million going to qualcomm. what have they one in this san diego court? >> they haven't won much. qualcomm and apple have been in a global dispute regarding the modems, the chip that allows iphones to connect with cellular networks. qualcomm has been claiming that apple has been infringing upon their patents for years now. apple has been saying that modems are standard essentials. these are part of the industries -- qualcomm has been trying to prove that we do more than modems, we have a lot of technology essential to phones that are not standards industrywide. today is ony ruled three me patents related to baty management and graphics
2:33 pm
processing, these are patents that apple is infringing upon that are owned by qualcomm. this is the first of many jury trials going on globally. this is the first jury trial won for qualcomm. 31.6 million dollars isn't much to lose sleep over for apple. scarlet: a lot of times, these patent disputes are over technology that's no longer even in use anymore. is the technology being disputed here currently in use? >> the core of the entire lawsuit is about modems. modems are the most important components in any phone. they allow you to connect to the internet and make phone calls. we wouldn't be talking here today if it wasn't for modems. these are things that battery management and graphics
2:34 pm
management that all phones use. apple has released updates in qualcomm.ork around scarlet: thank you so much. the latest on qualcomm versus apple. more breaking news -- let the california jury listed no employees and had questionable documentation -- it was a nonprofit charity. the take here is that anyone would have figured this out. >> if you ever needed evidence that the irs is not thing that much attention to charity filings, this is it. there were grants, one went to community donations that don't
2:35 pm
same key have the address. there's lots of weird things going on in terms of the number of directors and their independence. had anyone bothered to read this, they would have seen these red flags really quickly. caroline: it's almost rubbing salt in the wound. foundation -- they were helping those with privilege and pushing out the underprivileged even more. >> it is sort of upsetting. charities are around, the government says you can have you can breaks of th so that do good for society. these people were using a private foundation, public
2:36 pm
charities couldn't even bigger even bigger get an tax break, yet, this money is being used for wealthy people to get their kids into college. scarlet: in terms of the actual charity, they took in more than $7 million over four years. is that a lot or a little? >> there are some really enormous charities with billions of dollars in assets. this is not one of those. this is a middle-of-the-road charity. there are lots of small charities in your hometown that might exist on a couple hundred thousand dollars, maybe even less. there the charities out are 100% aboveboard. this is kind of small. attention,h to avoid
2:37 pm
but large enough that you're talking millions of dollars within a tiny enterprise. caroline: great reporting. from new york, this is bloomberg. ♪
2:38 pm
2:39 pm
scarlet: japanese banks are the biggest buyers of bundled u.s. leverage loans. they face increased scrutiny from regulators -- lisa has more on the ramifications. the topke a look at rated securities issued by clo's, which bundle leveraged
2:40 pm
loans, you can see they have widened out. investors are demanding to be compensated more for the risk they are taking on. you don't see a similar trend in similarly rated corporate securities. that people are attribute in this to a crackdown by japanese regulators, japanese 20-25% of aaafor rated clo's, the biggest buyers in the world, owning 10% of the overall structure. how much will this affect the underlying borrowing costs for u.s. companies? you can see the performance of leveraged loans has lagged behind high-yield bonds. high-yield bonds have returned 6%. the broader lone universe has returned a little more than 4%.
2:41 pm
the biggest buyers of these loans, interesting to see whether this will continue and appetitese banks' will evolve over time. caroline: some good-looking earnings -- all to beauty -- ulta beauty reported market share growth in all of their units. let's get up to speed with david wilson. this is outperforming. they are helping digital companies get into bricks and mortar as well. >> what's happened with the kylie cosmetics brand, in august, they disclosed that they signed this partnership deal and in november, they introduced kylie's cosmetics line online and in their stores. on their conference call, they
2:42 pm
said the demand for kylie products brought people, younger people into their salons. they want to go and try it out. get a younger to consumer into their salons to try a product and see all the other things they have for sale. scarlet: the elusive foot traffic everyone seeks. >> absolutely. a big piece of it. it drove store traffic, they said. comparable sales up 9.4% in the first quarter. it was driven by gains in retail, slower growth on their . it was up 25%, but a real shift to the stores.
2:43 pm
kylie was a big piece of that. notlet: kylie jenner self-made, necessarily. couldn't,ary clinton older women can and are, achieving success in business and politics -- glenn close and the new head of cbs news. why now? i put that question to susan douglas, a communications professor at the university of michigan. ofthere's a whole legacy antiquated stereotypes about older women. that older women should be invisible, go away. there was something in the 1970's called disengagement theory where older people were supposed to disappear.
2:44 pm
it was meant to be good for them and good for society. women today aren't having it. there are more women over 50 than any time in our history. they are living longer, they are healthier, they are working longer and they don't want to be relegated to the sidelines. celebrity such a driven and celebrity saturated culture. now, with more media platforms, more streaming services, jane meryl sally field, streep, they want to keep working. they've become role models for us, too. intersecting with all of this is the me too movement. it's a real rebirth of feminism. feminism wouldn't be possible without these women.
2:45 pm
scarlet: you write about this demographic revolution. women with higher education and savings are working longer. we are talking about privileged older women. people who are not trying to get hired in the field or freelancers transitioning to careers. there are a lot of older women who are working because they have to. between the ages of 55 and 69 are still working. 18% between 70 and 74. some are still working because they love their jobs. others have to. of this kind of empowered moment for older women, the other side of it is the have-nots of this
2:46 pm
generation, of this group of older women. people don't really think when at the attacks on social security and medicaid, that's a war on older women because they live longer. there social security is less. they need more of those benefits. people haven't thought about how that can come out of a gender work. that's interesting because it is not embraced at all by the feminist platform. and has to do with reproductive rights or maternity leave or harassment. il important issues, but don't hear things like medicaid and social security come up. >> we need a feminism that works for the entire arc of a woman's life. when she gets older, sexism intersects with ageism. i'm trying to push to expand the
2:47 pm
consciousness of feminism so that older women and their issues are part of that agenda. that was my conversation with professor susan douglas. from new york, this is bloomberg. ♪
2:48 pm
2:49 pm
a $25ne: hudson yards is million redevelopment on the far west side of manhattan, opening its doors to the public today. the ceo gave david westin a sneak peek at the development before the official kickoff celebration. ♪ here we are on the plaza. here,ou are looking at what we decided to do, we wanted to do something that was so incredible that every single person would come visit us. this will become the most instagrammable moment in new
2:50 pm
york. really an amazing addition to new york city. when we were designated to develop hudson yards -- that building opens and closes. it moves. you can see the wheels. it changes configuration depending on whether it opens or closes. it can be a smaller venue. >> how long have you been working on this? >> this is year 11. you have to set a date. we set a date. we will be there. it will open up on time, on budget. ♪ >> where are we? >> we are here on the 100th floor of 30 hudson yards. this will be our observation deck. we recently announced the name,
2:51 pm
"the edge." you can see the views from all around. >> wow. i feel pretty good. i'm not eager to go a lot further, but right here, i'm ok. >> you are looking down 1200 feet. >> on glass i'm sure is very strong. this is amazing. we are now in the retail, are shops and restaurants. we have seven levels of retail. 100 different shops, 20 different restaurants and coffee houses. >> you are curating to some extent. >> this floor in particular was trying to bring in new, different brands. we met with a lot of digitally native brands.
2:52 pm
we helped them create a physical presence. >> how many square feet? >> about one million square feet. on top of the five floors, we have neiman marcus. one of the largest department stores. it's not just a mall experience. i was really hoping david would jump on the glass platform. played a roleerg in the development of the hudson yards project when he was mayor of new york. with the ceospoke of neiman marcus. year plus 3% in u.s. sales. muchn't want to have too -- >> a slowdown would change the shopping habits of your core customers/ >> the core customer is the
2:53 pm
luxury customer. they are impacted by the slowdown in a different way. increases the higher stake on how we convince, how we delight the customer. >> did you see any pullback in sales when we saw the stock market fall in that run up to christmas? >> what we saw was a change in habits. people shopped a lot during black friday. we had a record-setting day on cyber monday. then, there was a slowdown between that and the last-minute rush for the holiday shopping. there was a slowdown there, but more because customers shop differently. it was still a positive quarter. >> does that mean they wanted promotions? >> we are feeling the competitive pressures.
2:54 pm
our competitors are much more promotional than we are. we have decided to participate in a deliberate weight. >> it is no secret that neiman marcus has a large debt load. how did this constrain your ambitions for the company? cash basically have enough with $700 million of available cash, we generate that cash from operations to service the debt. he doesn't prevent us from really growing the business. it doesn't prevent us from transforming neiman marcus in a luxury customer platform. the debt is something we are dealing with. we have an agreement to extend the maturity with our stakeholders and loan holders. we are focused on driving the business. >> those discussions and the agreement in principle are still ongoing.
2:55 pm
when do we expect to have a resolution? >> we expect to have a resolution hopefully very soon. >> what is very soon? >> we can't predict. we are making terrific progress right now. >> two years ago before you were ceo, neiman marcus explored going public. that didn't happen. what does the future hold? >> in the short-term, we are very focused on driving growth and implementing a plan. that will make us very attractive to the public market, to any strategic buyer. right now, we are very focused on driving sustainable growth. we are owned by private equity. they are long-term investors. we are there to create a sustainable business model and shareholder value. >> usually, private equity is looking for an exit.
2:56 pm
do you have a sense of how long you might have before they look for that? >> 4-5 years, which is a good window. tooshort, you are not -- short, you are not making the strategic investments -- it's about measuring the impact you're having. caroline: some breaking news from apple. response to the qualcomm victory. apple says it is disappointed with the outcome. are say qualcomm ip claims an attempt at a distraction. the stock is higher. this is bloomberg. ♪
2:57 pm
2:58 pm
2:59 pm
in new zealand, at least 4094 at twoin a mass shooting mosques, full of all shippers. one man was arrested and charged
3:00 pm
with murder in what authorities say what seems like a racist attack. have experienced that attack unlike anything before. we are not a place where violent extremism exists. we reject those notions and must continue to reject them. all, four people were arrested, three of which are believed to be involved. denies that he created an atmosphere of distrust. he said president trump was willing to talk, but was influenced by on cars and -- by boltonsing demands
3:01 pm
and pompeo. bolton spoke to reporters today at the white house will stop >> i think that as an actor -- white house. >> i think that is inaccurate. spoken to my south korean counterpart in we discussed their reaction and our reaction. i would like to speak further within the u.s. government before i respond. reporter: he also denied the north's version of what took place saying they are wrong about that and i was there. president trump met with his .ilitary chiefs today patrick shanahan faces questions from senators on thursday about the president's desire to lose
3:02 pm
in military billion construction funds to pay for a border wall. government is said -- saying it has been left in the dark about talks with the taliban. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than120 countries. anchor: 3:00 p.m. in new york,
3:03 pm
7:00 p.m. in london. anchor: this is bloomberg markets the close. the s&p 500 has say test heading since november. musk road ahead how tesla's big unveil may have reignited cash concerns. all that and much more coming up. get a check on the market with about an hour to go before trading as chipmakers lead the way. that boeingport will roll a software update for soon -- max jet
3:04 pm
soon. anchor: the dollar down come almost all the major currencies as well. a common nation of mixed data and signs of progress in u.s. trade talks. let's take a closer look at today's action. lisa, what are you watching? reporter: qualcomm shares surged much as 3.5% as they won their first jury trial in their dispute with apple. is if find interesting you take a look at apple's response, flatlined. you can barely see any sign that this jury trial came out. fore thanking the jurors
3:05 pm
their service, saying they are disappointed with the results in saying they will fight back on a global level. it has given a boost to qualcomm. reporter: the s&p 500 above that level.ortant 500 this could be worrisome and we put it into looked at before. the s&p 500's all-time high, we see some -- from a directional standpoint may trade in tandem. oil down 19%. what i would like to point out is the area of congestion. or oil, it is starting to break
3:06 pm
down. this is something to pay attention to. they have a way of training together. about: with all the talk the reemergence of tech stocks, i want you to take a look at what is happening in europe. up about 5.5%, just since the end of january. it pretty much beats a lot of texans across the globe, up 2.9%. italian stocks, who would've thought that #not only gone back to equities, but also forcing the actual borrowing cost below 1%. you are seeing high yield spread just in the last month alone.
3:07 pm
basically, a lot of risk appetite starting to return because people seem to think it has always been stuck in the doldrums and it may have finally bottomed out. a lot of people starting to see that. merrill lynch calling it the biggest trade out there. we want to dig into the economic side, particularly in europe. risk on in europe. is the economy bottoming out. that.er: not in a sign of hope.of this is on
3:08 pm
did not come of the trend is not on emi. it has been going on quite significantly. anchor: there's a lot of talk of trade lifting these economies. what do you see? any signsthe burnout and the first-place you want to look at is price indicators because they move first. they also have the container shipping index. there are also indicators like metal prices. a lot of time is spent figuring out. is there any evidence things are turning around and if you look at the real hard data, it leads
3:09 pm
to manufacturing pmi's. anchor: what about the of the exposure that the u.s. has? many people deal it is a quite isolated economy. reporter: that is important. about a third of the s&p 500 sales come from abroad. that is not the tone you will .et that is a closed economy, washing we care about the rest of the world? you'll get a much stronger number. ands actually vulnerable the data is generally and more emerging markets. fed, -- some of the
3:10 pm
risks for the rest of the world are doing poorly. we are looking for a turnaround, but not quite getting it. anchor: how much of a risk is breasted -- brexit at all? reporter: i just came back from london and if anyone mentions the word brexit, you lose five pounds. i think that is exhaustion everywhere. it is very difficult to figure out. there are now six or seven different scenarios which we can .ebate
3:11 pm
these are more likely, but the bottom line is uncertainty. it has become difficult to price. anchor: how much money was in the jar? he can't get away without saying the word. i hope you did not add to it. she could international economist joining us. coming up, we have lots more modethe markets in rally and the dow closing higher for the week. this is bloomberg.
3:12 pm
3:13 pm
♪ anchor: these of the stocks making waves in social media today. first up, shares of adobe have the biggest drop since december after a profit that missed wall
3:14 pm
street projections. bet up, fourth-quarter sales projections by coley cosmetics -- kylie cosmetics. deals are poor, infrastructure spending is one of the few things in washington everyone can agree on. with more projects getting they are start -- they are ready to get started. he spoke with jason kelly about the opportunity. >> infrastructure is an interesting space. there are a couple of things that are driving it. one is on the macro side and there are strong drivers.
3:15 pm
the energy transformation, so -- there arey micro drivers and when you think about the u.s. specifically, there is a survey i like to look outcome of the american society of engineers, they do a rating of infrastructure quality every .our years and we are at a d+ that is an upgrade from i think we were indeed before that -- a d before that. bring our infrastructure up to gdpl that helps support growth long-term. abouthave been talking opportunity for a long time. the current administration has said $2 trillion, whatever it is
3:16 pm
going to be is going to be put towards that and yet, it feels like it has not materialized yet whered is their movement it feels like money will be deployed.- diploid -- whether it is the federal infrastructure program or some sort of financing program that can be put in place. we have some commentary around seems to begress able to talk to it -- talk about it. to be thedoes seem one thing that people can agree on during this fractured time. >> it does. the second thing, on the capital side, we have been focused on taking this initiative for years. example, we took the
3:17 pm
delivery of new cranes that are the largest in the west coast. [no audio] reporter: --whether it is gip, brookfield in the news, otros -- oak tree. that is a lot of money pointing to this. how much do you worry about too much capital chasing deals? we don't worry too much. there's a huge opportunity set. different people have different goals.
3:18 pm
they are focused on operational companies, which are essentially companies providing essential service and when we have an opportunity to implement cuties model and thiss is a bit model that e2 to -- a business model that et queue has been and limiting for 20 years within the infrastructure space. when you look at infrastructure as an investing opportunity with a macroeconomic backdrop, let's talk about the u.s. and the rest of the world. as we get longer and longer in , how does thet opportunity change what types of
3:19 pm
deals you end of doing? are they different or no? >> to get thing is the infrastructure on a long-term , so weindiscernible] are looking for opportunities where there is a stable cash flow and a stable demand base. we think the opportunity set will stay the same. in the short term, there are certainly risks we have to consider. longer-term, we think there is a return basis. speaking of infrastructure, the most -- usting thing condoms, drugs and they show
3:20 pm
humanities oldest habits. it is increasingly done with less --- moist how owelettes. people to trash been flushable wipes.
3:21 pm
anchor: thanks, tiffany. this is a huge thing. every time i get on the subway, was coinedn and it in the london -- in london. it is a huge problem, but forget the wife's. just get a high-tech toilet seat like the ones you see in japan. it has heated seats, noise -- aing, and the day bidet. toy are starting to use it produce more biofuel in the u.k. anchor: this is bloomberg.
3:22 pm
3:23 pm
3:24 pm
♪ anchor: joining me today is kevin kelly of #investments. happy rented to you. last december, you were at -- [no audio]t -- this week, the best of the year. i'm actually getting more cautious and one of the reasons why is several indicators on the volatility side tell us that. we are seeing things starting to bottom here in the 52-week lane -- 52-week range and seeing this further spread. -- vix cany go up
3:25 pm
and asset from here correlation, so there's got to be some diversions coming soon, especially given the economic indicators of slow growth. you have educated me .bout -- around the skew index you are the real expert here. i would love for you to talk to our viewers about what this chart means. >> it is the true fear index. people get it confused. that is the real fear index. you start to see that go up and see investors are buying further out of the money. they're worried about the market -10%.g down, 5% you start to see people pay up to that insurance and as you see the market rebound, they are starting to put on those bets more more.
3:26 pm
we really capitulated in january. bottom started hitting a , i said this is a great time. anchor: this is another reason your cautious on stocks. let's talk quickly on your trade on friday. reporter: they can actually generate high yields and no to generate high yields than in the cannabis space. what you do, you can buy the stock, sell the october call, you get 10%. anchor: got to leave it there. from new york this is bloomberg. ♪
3:27 pm
3:28 pm
3:29 pm
3:30 pm
>> this is bloomberg first word news. theority in new zealand say gunman behind one of the mosque shootings that left 49 people dead tried to make a few things clear and a manifesto he left behind. australianyear-old white nationalist who hates immigrants. he was angry about attacks in europe that were perpetrated from muslims. he wanted revenge and to create fear. he also livestream to the world his dissent on the worshipers. >> as soon as

22 Views

info Stream Only

Uploaded by TV Archive on