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tv   Bloomberg Markets Americas  Bloomberg  March 26, 2019 1:00pm-2:00pm EDT

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washington state, called the move both unbelievably irresponsible and says the defense department is treating the military funds as a piggy bank where "you can simply go in and grab money for something it."you need china has suspended its so-called airworthiness certificate for the boeing 737 max 8 jet. review anment will proposed software modification before determining whether the plane is safe to fly after two weeks of crashes. the potential hits comes to bowing a day after china ordered $35 billion worth of airbus a320s, most from the series. venezuela has suspended school and work activities because of continuing power outages. this afternoon, the information minister declared the lights are coming back on. it is their second major power outage this month. the minister blames the blackouts on the attack on the power grid by opponents to the maduro regime.
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nasa has canceled its first ever all-female space launch. the reason, space station. astronauts were scheduled to conduct a spacewalk this friday to perform maintenance. both women need a medium-sized space suit, but there is only one at the space station that is ready for use. nasa says koch will take it this time. onbal news 24 hours a day air and online, powered more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. it is 1:00 p.m. in new york, 5:00 p.m. in london and 1:00 a.m. in hong kong. i am a vonnie quinn. welcome to bloomberg markets.
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from bloomberg world headquarters in new york, here arethe stories we following. potential oil terrorists still looming. we will hear from the ceo of citigroup about his meetings with u.s. lawmakers. bloomberg into the new york city to talk to the ceo of a natural gas company and their plans for exports. and we will dig into the fuel. and the upset victory that led her straight to the u.s. house. all of that and more in the next 30 minutes. doolittle.ail abigail: we have a risk appetite. take a look at the s&p 500. at high about .6 as the high is up 1%. doingsdaq, biotech index better, and oilless higher. all of this as haven bonds pullback, telling us yields are going higher. that is pressuring stocks.
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one reason they are off of the highs and this chart explains it. this is the financial sector in march. earlier in march, it had been higher, then lower, and that had something to do with the ecb dovish in the beginning of march with disappointing economic data, and last week with the fed, now down 4.1% trade this is about 13% of the s&p 500 weighting so this could be an issue here, and if the yield is going lower, it represents a risk off sense around the global day, we haven the games. let's look at top movers. we would take a look at the likes of apple, amazon, a viacom jumping back after yesterday. viacom has reaffirmed their full-year affiliates revenue. some nice movers on the day. vonnie: thank you for that. let's get a second take on today's rally and equities with
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kevin dineen, senior portfolio manager at roskilde investments, more than $260 billion -- we are just getting the two-year auction results. i can put you on the spot. 2.61% indirect, the yield to the ratio 2.6. pretty much as expected, maybe a little more indirect then the last time. we were talking before you came on about what a change since the last time you are on, and there has been an fomc meeting, a whole change in expectation for the fed. do you feel the sentiment has shifted? is at ahe sentiment pivotal point and it makes people think there is a recession behind the corner, perhaps but if we look to 1954, 18 months after that yield curve inversion, what is more interesting is the comments by the fed and now we are talking about a cut after we were on an upward trajectory after interest three monthse
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ago. i think there is some concern on market participants how much is reacting to the markets. at the same time, we see some of the fundamentals of the u.s. economy looking robust, and perhaps watering in the first quarter of 2019. vonnie: what is the fed's next move according to wrestle? -- russell? kevin: it looks like the market is positive -- icing in a possible cut and they are very data dependent. if we get the economy accelerating again in the u.s. but globally slowing down, that could be to another cut in 2019. vonnie: does the fed managed to have the u.s. avoid a recession in the next couple of years? there are so many recession calls for 2020, 2021, but no one saying this could be avoided. kevin: there are two things that work. we have had a zero interest rate policy for 10 years. if you are behind the closed doors at the fed meeting, there
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is probably a lot of concern, as there should he, among policymakers. this is uncharted territory. what are the on sequences of that? what is the misallocation of capital on the chart of enterprises in the markets over a 10 year period. we may see the outcome of that. at the same time, unemployment can continue to go lower. inflation is not a reason to now.right we are seeing wage pressures but other parts of the economy looks out from the inflationary pressures, and if their full employment mandate becomes paramount, there's no need to be an aggressive policy action. vonnie: the president tweeted the republican party is going to be the party of health care. literally, the republican party will become "the party of health care," and health stocks right now is down 1.7% and health care facilities down. a callctors can you make on now regarding their health over the next two years? kevin: the health sector has
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always been well, regardless of democrats or republicans. you are providing services to more lives, as they put it in their nomenclature, and that trend will continue. i also think getting service to people who are not eligible before, on the one side with the republican policy would do is have a reason not to have access to health care, and it is private sector versus public sector. vonnie: the president is speaking on capitol hill, kevin, we had to jump there. >> [indiscernible] president trump: i think it went very high up. can not believe our country allow the separate to happen again. this will never happen again. we cannot let it ever happen again. it went very high up and it withed their the low, but instructions from the high up, this should never happen to her presidents again. we cannot allow that to take place.
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[indiscernible] president trump: i don't want to say that, but i think you know the answer. >> while you have not committed crimes -- president trump: who said what? report was great. it could not have been better. it said no obstruction, no collusion. it could not have been better. >> [indiscernible] act should bee struck down, what is your message? president trump: let me tell you my message, the republican party will soon be known as the party of health care. you watch. >> [indiscernible] some brief comments there, the president replied to some reporters and obviously you saw some cabinet members with him, along with republican leadership saying that he does not think democrats talking about impeachment, clearly saying that it was a win for
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him. the mueller report. he really did not say anything else, just something he would never wish on anybody else. he also said what he just tweeted alcoholics are looking hard at her -- tweeted republicans will be the party of health care. it seems that they are turning to health care, and this seems to be a calculated move. kevin: president trump trying to go on offense what follows the fallout from the conclusion of the mueller investigation and the attorney general's letter over the weekend. hillresident on capitol reiterating his comments from yesterday, but making that clear policy pivot to health care at a time when democrats are increasingly calling for the sole relief of the -- full uellese of the me
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report. as of now, that is not in the works. rvonnie: i believe you have a special guest for us. .evin: we are waiting right here is the ceo of subaru america, esther tom udall -- mr. tom dole. tliv are joining us. -- thank you for being with us. meanwhile, there is a debate within the republican party of about the policy concerns of tariffs and how this impacts the auto sector. how can you tell us about section 232 tariffs at where the issue stands. tom: that is a great question. i came here specifically to talk to our congresspeople about the tariffs and the impact they are having on our production chain and how it will work into the distribution chain and are pricing. this is something we are getting a lot of sympathy with them congress folks. we are hopeful this resolves
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itself. kevin: a comment the president made the other day when he was asked about whether or not a car poses a significant risk to national security, and he said "well, no." do you think he showed his hand a little bit about where his thinking is on the issue? tom: i would hope so because nobody really wants these tariff . they are not good for the consumer. the price of the car has to go up. depending on who you listen to, it could be from $5,000 to $7,000, raising a monthly payment someone would have to maybe by$550 a month another $125 a month to $675 to $700, a mortgage payment. kevin: and it really shows i think the middle-class arguments here because a lot of people take the top line view but this would have an impact on consumers in the middle class and not just the top line. tom: you bet. in terms of affordability of vehicles, there are estimates that potentially the size of the market could contract anywhere
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from 2 million to 3 million vehicles should the tariffs be fully implemented. kevin: i was going through the numbers, 87 consecutive year-over-year growth for subaru. do you think that becomes at risk should the section 232 tariffs going to affect? tom: there is no question because what happens is the prices of cars go up, therefore, how do you put papal into payments? was people -- put people into payments? most people do not pay cash on a vehicle, so monthly payment becomes critical. the brewing also battle over in california about environmental standards. , asauto industry firsthand you know, has been urging the federal government to follow, i would argue, california's lead. like a 50 state solution, whether the california regulations or federal, but somewhere in between ms. best for the auto industry in general. we are hopeful the
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administration in california can reach a compromise. kevin: when you are up here, what is the next moment for all of the trade watchers on wall street or in the beltway, or in europe, what is the next key deadline for section 232 that we should watch for? whether itpeful that is congress of the president, they come to the conclusion necessary,fs are not so whether that happens between eu, china, mexico or canada. kevin: is there a way for congress to pressure the president? should he continue to follow through and that cause of the section 232 declaration? we are hopeful the members of congress will keep pressure on the president to understand the impact, from agricultural to automobiles. it affects everything. kevin: have you had a receptive audience? tom: yes. at congresspeople have been very receptive to the message and they are concerned, whether from an ever cultural state or
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industrial state. everyone is concerned about the impact of tariffs will have on consumers. kevin: i can't believe i will ask you this, our subaru's a national security threat? tom: of course not. we like to think we support national security in the united states. all the research and the united states that we are doing in michigan and california, with autonomous driving, we are clearly not a national threat. kevin: we appreciate your time, the president and ceo of subaru of america, tom doll. other ceos from the automobile industry are urging congressman to back off at 232 tariffs. vonnie: thank you, our chief washington correspondent kevin cirilli. app thatrganizing originated in alexandria cortez's primary campaign is about to go mainstream. the reach app is offering a new way for campaigns to campus
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supporters. let's bring in our columnist josh green from our columnist josh green from a washington, d.c., bureau. tell us how this app actually got created. it was the night before a primary campaign. josh: a few weeks before the primary campaign, cortez's campaign, most of whom were new, realize that they had a chance of winning, they needed to sign up a lot of people who traditionally do not participate in politics. rather than the old-fashioned way of getting a paper list and knocking on doors, they built an app that uploaded their voter list and allow them to go to bars, subway stations, and farmers markets, and reach the young people and minority voters who roundup forming cortez's when the coalition. vonnie: how had it not been done before? josh: a great question. if you talk to anybody who works in political technology, they will to you it is light years
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behind silicon valley technology. a lot of things that seem like they should be common sense just a not done. what happened was you got young volunteers tech savvy with a fresh pair of eyes that said, the weight democrats do politics does not really make a lot of sense for us. we are going to invent something new and lo and behold it worked, and now they started a company that is going to make this available to other democratic campaigns and anybody who wants to reach these voters. vonnie: so take the groups around that age, 29, newcomers a digitals, we have marketing specialist and lighting director, and they have now disrupted politics as we know it. how many campaigns will it be free and available to? josh: good question. after aoc's win in the primary, a lot of word got around, so about 14 or 15 of them have
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already used it, including giovanni williams, who won the new york city public advocate position last month. app is out there and works but they will not be free i don't think. they are moving from socialism to capitalism, starting a business, and putting out a shingle, looking to latch on minded campaigns, meaning not necessarily socialist, but they are looking to work with democrats who want to draw in the grassroots who are willing to forgo corporate tax money -- pac money, and there is a lot of energy in the grassroots for that a portray now. it will be interesting to see who they wind up working for. one bit of news i broken the -cortez herself approached them to recommend the democratice of the presidential campaigns are interested, too. it makes a lot of sense if you are a democratic campaign to think if you want to reach millennial cvoter -- millennial voters and minority voters who
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are so important to bring out, it mi look makes sense -- it might make sense to look at new ways to bring them out and do that. vonnie: looking for to seeing who might become petition for this app. that is josh green from our washington bureau you can read this in the current edition of business week. still ahead, we had to the bloomberg new energy finance summit in new york city. you will hear from the ceo of tellurian. this is bloomberg. ♪
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the bloomberg new energy finance summit is happening this week in new york city. the group gives in-depth analysis on clean energy, transport, commodities and emerging technologies. alix steel joins us with assessment from the summit. alix: i am here with make gentle, ceo of tulare, one of many companies hoping to be the
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next second wave of lng exports. particularhat the business model, basically pipeline, gas producing and in lng export facility, looking for equity investors, so you have your hands and lots of businesses. meg, great to see you. meg: tliv for having me. alix: you bet. what is a trade or not trade deal mean for you guys? china, i'mdeal with assuming you are asking, is helpful just overall for a natural gas to go from the u.s. to china. as you know, china will be the largest market for lng exports, reaching about 100 million times and they're still growing at roughly 30% and year. they are pulling demand off of the market. since we have natural gas to sell from the u.s., and we are now developing branded gas that does not have the market and is in the u.s., and china is a huge
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market, so conclusions to the trade deal will help the gas flow. for equityou looking -- as you look for equity partners, are you noticing friction between china and the u.s.? or is it difficult to get the interest over there? meg: from a business standpoint, working with chinese companies, there is no friction per se. they're looking for technology from the chinese government that they are trying to move forward. we have had a lot of more momentum coming from them in the last 30 days to 60 days, so that seems to be a positive sign. as companies, i think we both are ready to transact whenever the larger missions of the two governments are completed. alix: because you feel like a something gets done, will the trigger, and many will be coming in, is that immediate or they have replacements in the meantime? meg: i think they are looking for replacements and u.s. opportunities alike, and they will have such a big portfolio. to china,ing to go even if it ends up on a
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short-term basis, so it is only a matter of whether there is lng, ornt through whether it is long-term contracting. otherwise, we will leave it to the short-term markets distorted out. billion and louisiana with pipelines, gas, export facility and you are looking for partners. there was a rumor some good the in saudi arabia. could you give me details? meg: we are looking for partners, and i would say we are at this stage are we are concluding documentation with our partners. i think we will have a nice portfolio of major traders, asian counterparties, and even some from the middle east. this cutteron that, and saudi arabia went to have access to the full supply chain and does that make you help your make your case better than one meg: export terminal? is:yes, so a good example with the investment in the golden pass facility, which is import terminal today being
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converted to a next four terminal, so that construction has started and is going forward with exxon. for provides a good example other companies in the middle east that there is an opportunity to invest not only in the infrastructure but the upstream, which is their expertise, quite frankly, to do single line oil and gas, so they are perfect partners. alix: can you give me how many are on the short list, whether sovereigns, companies are traders, and when you will pull the trigger? meg: i would say the short list right now, although we are working with about 30 companies that have been in the detailed process, so of that, i think the ones that will go forward alix: half aably dozen. how close are you? meg: we are a couple of months from being able to conclude and start construction. we had the final piece of the permit. we have completed the environmental work, finish those contracts, and will start
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instruction on the largest driving be funded infrastructure project in the u.s. in a few months. alix: so you are excited, and that is good. [laughter] otherhat moved to the part of the trade environment and contract pricing, what kind of contract pricing do you notice knowing how might it have been different six months ago? meg: we have been moving more toward pricing our long-term agreements from our trading andfolio on the japan korea marker basis, which has become the clearing price for the lng market. so this is an important change, right? is indexed tong other commodities, either oil or gas in other places, so finally, to have a liquid trading lng marker is critical for our formation of commodity. alix: biggest risky see right now? meg: biggest risk is probably the ability of the u.s.
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infrastructure to be built, and manage the risk of supply across the gulf coast. we have a lot of task getting stuck behind pipes, especially in the permian basin, and i think prices in the permian this morning are at -80 cents. alix: so basically paying to get your gas? meg: so we have really competitive supply the u.s. we need to -- almost $200 billion will need to get it out. alix: great to see you. back to you. vonnie: alix steel, thank you, with the ceo of tulare and c tellurian. ceo of coming up, the former ambassador to canada on an uncertain future. this is bloomberg. ♪
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♪ >> i am mark crumpton of bloomberg's first word news. president trump tweeted that he intended to remove new sanctions against north korea, but he actually wanted to lift and
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multis on -- penalties. the white house said the sanctions against the chinese remained in place and that no additional measures against north korea were necessary. house republican leaders today slammed the democrats over the recent miller report saying -- mueller report, saying now that it shows no collusion, steve scalise as the house minority whip. >> those people who made those reckless claims and they continue, they cannot give it up. they continue to want to harass the president and his family. enough is enough. the american people are disgusted with this abuse of power. radcliffe of texas
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said that if 19 federal prosecutors, 40 fbi agents for the18 hours a day last two years could not find any crimes the charge donald trump with, a few house how staffers and should not be wasting our time looking for them. in paris, chinese president xi met with a -- emmanuel macron, angela merkel, and jean-claude juncker. is trying to increase support for his signature belt and roese trade project. says thatent macron they need to build strategic multilateral trade. hisamin netanyahu cut visited washington short yesterday. targestsircraft bombed intoilitants fired rockets
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israel. he says he will take all necessary steps to ensure israel's security. the militant group has accepted a cease-fire plan with israel. global news, 24 hours a day on air and on @tiktoc on twitter powered by more than 2,700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. ♪ >> live from bloomberg world headquarters in new york, i am shery anh. >> live in toronto, i am amanda lang. welcome to bloomberg markets. here are the top story that we are following from around the world. u.s. stocks are on the rise today. all major s&p sectors in the green.
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investors concern lessening perhaps about the economic downturn. plus, there is an indication that theresa may'deal may be back on the table. housing dig into u.s. starts, they fell in february by the most in eight months on a drop in single-family homes. let's get a quick check on the weor averages and as noted, are seeing all of the across-the-board averages moving higher. for the s&p 500, that is every subgroup. we are seeing oil gaining today and energy is a group that is powering us higher across the s&p 500 and for toronto. techs doing well on the day. aheadears to be risk on of some news. it is a busy news weekend including the chemo on brexit tomorrow -- the key vote on
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brexit tomorrow. seems that risk on is the theme because financials are rising. this after becoming the worst performing sector last week. we have yields under pressure and financials really underperforming the broader markets. the biggest underperformance against the s&p 500 since 2016. thestors betting that federal reserve will have to cut rates in order to deal with a slowing economy. yields under pressure. rememberbout banks, the strength of the canadian the canadianlped economy emerge from the global financial crisis? that sector is under pressure. debt in canada is surging to new heights. we are talking about the biggest gdp among thet to g7 countries. amanda: that has some turning
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bearish on our banks. some would say that look at the net worth and the income ratios, those matter more. canada is fairly conservative on those measures. we are seeing financials under pressure because of the numbers. onsident trump campaigned getting a better deal for american workers. usmca is facing less certain future. lawmakers are set to discuss nafta 2.0 later today. says he isest concerned about the path ahead. we have with the -- with us the former u.s. ambassador to canada, bruce hayman. we certainly thought we had this over the finish line and not quite, apparently. particularly true in congress. how concerned do we need to be about getting this deal done? >> i would be concerned.
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i think it will be a very difficult path to get it done, and i really think we need to have it modernized, efficient, and fair north american trade agreement and that was the goal going in. but how the administration is handled that and the now we have calendarll bad management and politics. we ended up in the spot where we are dealing with a new government in mexico and parliamentary elections coming up in canada, i think we are in a difficult political place. we also have a number of things that need to get done that are still yet to do. labor reforms in mexico. the unions in the u.s. are turning against the agreement as it stands because of lack of enforcement. provisions on labor. environmentalists are looking for enforcement. -- drug and biological
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lifespans have been expanded. there are a lot of issues facing the administration, and the most important one, steel and aluminum tariffs. --hink we'll a big hill here we have a big hill. >> how on earth can the canadians in good faith stand and watch when those -- how onre on place earth can the canadians in good faith stand and watch? i thinkassador heyman: the president thinking and a binary way in which i win, you lose, and isolationist outcomes re that i have put our relationship in a very difficult place.
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i think this is the time we need to do some course correction and taking off those steel and aluminum tariffs would be a good place to start. if thewhat about administration considers import quotas instead of ta riffs? it. ambassador heyman: depends on where those quotas are and how they are implemented. that will be up to the canadian and mexican government that they are comfortable with it. if there is huge bandwidth to grow in industry and these things can be looked at, there is a path out of it, but bottom line, canada -- we have a surplus in steel with our trade, and to say this is a national security step is a real stab in the back to our relationship based on how integrated we have been. exporters and canada have confirmed that china has halted those imports of canola
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oil imports. on it beingtion huawed to the wall -- i arrest. is. ambassador heyman: this a direct result of president trump and in his own language where he said, he would be willing to compromise on something that is legally bound between our two countries in which he said, he might use this and a trade negotiation. now, the chinese get a free pass not only hearing the president thethat, but the way president has treated canada, the chinese are taking canada in . pretty substantive way during my administration under the obama administration, we had of chinesease national being extradited, but the chinese knew better.
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they would not go after canada because the administration before said nobody full's with our best friend. -- fools with our best friend. the trump administration is put canada in a tough spot. shery: does it follow that more of this is the calm, that -- is to come? fmr. amb. heyman: i think you are absolutely right. when we had a multilateral approach to the world and we had alliances and friends where we all stood up for each other when thisd, that now with unilateral, isolationist approach that the president is taking is leaving our best friends and our allies more isolated, and leaving others with fair game to go poke at them. i think it makes for a very unsettling time in the world. what would your advice be in terms of where we go from here on actually getting a deal done,
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the importance of getting the cross-border trade back in business? there are all of these issues still on the table, but can we hurry it along? fmr. amb. heyman: there are couple of windows opportunity to get this done and i think either later this summer early this fa getsnd then it kicked off to the lame-duck session. let's get the retaliatory tariffs also members of congress were feeling those can be willing to vote for this. up's find a path to open enforcement and improve enforcement on labor and also find some pathway to deal for the term of patent life biological pharmaceuticals and i think that is a u.s. national issue. those things done and the mexico passes labor reforms, i think the deal can get done, but there are a lot of
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hills to climb. amanda: our thanks to former u.s. ambassador to canada bruce heyman. b for brexit, u.k. parliament says it will take their time to find their way out of the block. this is bloomberg. ♪
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♪ >> this is bloomberg markets. i am shery anh. amanda: amanda lang and. british prime minister theresa may is still fighting to have her brexit deal past. members of parliament are pushing the government for a quote softer divorce. we have our bloomberg correspondent live in london. it does appear that has not been
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completely wrestled for control. what does this indicate might happen next? are seeing today after parliament yesterday voted that they would take control of the process is lots of people talking about how this is actually going to work. inhas never happened before the history of parliament. tomorrow we are going to see is a series of indicative votes on brexit. what there is a consensus for. these votes will be nonbinding and mps will be given the option to put down whether they back options, and they will be double to put down as many as they like. the ballots will be put on paper. are puttingt, mps for their suggestions of what they would like to be able to vote on. that will be decided tomorrow by
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the speaker of the house. we are expecting a vote to take place tomorrow with the results coming tomorrow evening around 9:00 p.m. shery: what can we expect to break the gridlock and how the european union factor in all of this? moment, we are not expecting to see the gridlock broken tomorrow. tomorrow is an opportunity to see whether there is any kind of consensus over the particular of them could potentially command the majority. and then further debate next week to see if there is something they can rally behind and support. same time, theresa may has said she will not necessarily implement what is backed. she said she would not back a norway style deal that is remaining in the european economic area which does leave a
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problem for some of the mps. shery: jess, thank you. to see how these developments are waiting -- weightin -- pound, our the guests. the chart you have been showing, the forecast for the fourth quarter this year are higher at this point and where the pound is right now. optimism that we will see a softer divorce and delay could be extended forever? look at the surveys and across the board, the people who you surveyed tend to be dollar negative three and is partly what is picking up. itself, the brexit that takes longer to do is bullish in sterling because over that time, monetary policy can come back.
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patch,this recent soft many people were expecting the u.k. to hike rates. softer, longer brexit process and one in which monetary policy comes back to the fore made a positive for sterling. i think it will come up to 135, 136 -- the no deal, even though it seems like it is ruled out, a lot of things that we look at back in to this trial. people think it is prime butster's may fault, parliament is just as divided as the tory party. we may seeger-term the currencies on both the u.k. side but also the euro trade on the economic reality of what this postdivorce looks like. what is your expectation for the euro, because there will be disconnects and some suffering. where will you see it and where do you think it will show up in the currency? marc: in some ways, if there is
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asymmetrical relationships -- for the u.k., the eu takes about 40% of their exports. the for the eu, the u.k. is only home to 10%. thatroblem is i suspect the brexit mess leaves the eurozone vulnerable. the bigger picture has been that weak pmi from last week. it has offset the federal dovishnessasing, the , and the big weight -- i am in the cap it says the euro will eventually break out of this and take on a 113-115 trading ra nge. ae euro zone economy recovers little bit as well, but the ecb is committed to using. i read federal reserve is being neutral. out because itom
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seems like the fx markets have been relatively quiet given everything that is happening. not just the fx, but stocks. a lot of the moves concentrated on the u.s. rates market. what is this telling us? marc: it seems weird to say this are celebrating the 10 year anniversary of the great financial crisis. so the recovery. the great moderation which is havetime where we relatively slow growth, low inflation, long business cycles that are flat. this by the great financial crisis, we are still in this great moderation. low inflation, low growth. when we see how it is reflected in the market, i think we had generally speaking, record low volatility. index,rill lynch multiyearolatility in
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lows. if the financial markets are stable, that means the economy is going to be volatile. no growth in q1, and i'm looking forward to something closer to trend growth. shery: marc chandler, thank you for joining us. signals forixed housing at the start of 2019. that story next. this is bloomberg. ♪
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>> we have the latest breaking news on the ongoing patent battle between apple and qualcomm. apple has infringed on qualcomm's patent, the trade it has found that apple has infringed on a patent by qualcomm and as recommended an
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import ban on some iphones. qualcomm gaining around 4.1% at the moment. u.s. housing index showing mixed signals this year with a decline in stark numbers casting a shadow on the real estate market. joining us with more is our bloomberg reporter. that isthe latest data showing us the mixed signals in the real estate market. >> today, we had housing starts. unfortunately, it is another negative sign for the housing market. in 2018, it was the year the home builders and home buyers and sellers would rather forget, and we expected the come right back out of that economists expected that. the mostecline and in concerning is the decline in single-family home starts.
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it was the lowest in about four years. thatthe indicates is people are everything from starting families and future spending and investment, but also, it tends to be the less volatile category. in the past, we have had the and condos,clines but single-family homes tend to be pretty reliable. factors, obviously rising costs on materials and perhaps some confidence related to the government shutdown. can we treat this as a number that can be changeable as a get another regan and housing? katia: housing in general tends to be a more volatile indicator, so we look at existing home sales and a new home sales, and there is the picture that is a bit more mixed. salesisting home rebounded, but the new home sales, service and percent and we are seeing some cooling and
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easing there. the weird thing, taking the nals is that mortgage rates are low. they are more affordable and they should be making houses more portable and we are not seeing the demands. why aren't they building at such a good time? that is where the trouble comes in. >> thank you. great to have you. shery: we want to recap some of the latest headlines out of apple. a trade judge has recommended an import ban on some of apple's iphones. apple infringing on qualcomm patent. this is bloomberg. ♪
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♪ i am mark crumpton with bloomberg's first word news. patrick shanahan says that funding a border wall with pentagon money is a longtime risk. raising or using
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the money now may undermine the defense department in the future, but he says he will act on the president possible orders to use $1 billion for military recruitment funds for the project. a former trump campaign aide says the bureau wanted him to wear a wire. says thatadopoulos agents wanted him to record conversations with a professor who said that they had damaging information on hillary clinton. he says he rejected the request but a transcript of his interview was released today. we will soon learn more about the ethiopian airlines crash that killed 157 people two weeks ago. will beinary report


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