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tv   Bloomberg Markets Americas  Bloomberg  April 4, 2019 1:30pm-2:01pm EDT

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with mexico. in a statement, house speaker nancy pelosi says the president's action clearly violates the appropriations clause by stealing from appropriated funds. house minority leader kevin mccarthy says he and second ranking house republican steve scalise voted against the action. secretary of state mike pompeo says nato must adapt to emerging threats such as russian aggression and chinese strategic competition. it is opening remarks at a meeting of nato foreign ministries in washington today, secretary pompeo also said it was the responsibility of member states to make the case for defense spending to their citizens. >> this organization continues to add new members and we welcome the aspiration of other nonmembers. no military alliance in the world can remotely do what we do . no alliance can remotely match the power of the nations represented here today.
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all be proud. these are greater compliments. secretary-general yen stoltenberg says the militant -- members agreed on a package of measures to look at aspirants with increased maritime corporation, patrols, and port visits. in london, prime minister theresa may is holding brexit talks today with the opposition labor party. they are looking for a compromise position on the u.k. future ties with the european union. speaking in the house of commons, rex at secretary steven barclays says the british people are growing impatient. people don't want this to drag on further, they wanted to come to a resolution. they want the house instead of being against everything to come to a decision. it is time we moved on and got this delivered. british lawmakers have backed efforts to prevent a disorderly departure of the european union the last night,
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they voted to block a potentially damaging no deal brexit. south korea says it may send a special envoy to the north in an attempt to get nuclear talks back on track. negotiations over pyongyang's nuclear program have been stalled since a february summit between president trump and kim jong-un in vietnam ended without agreement. south korean president moon jae-in will travel to washington next week to discuss the new chino -- diplomacy with president trump. global news 24 hours a day, on-air, and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. shery: live from bloomberg world headquarters in new york, i'm
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shery ahn. amanda: in toronto, i'm amanda lang. we are joined by our bloomberg and bnn bloomberg audiences. here are the top stories we are following from around the world. inching closer and closer. president trump says any trade deal with china has to be great. he meets today with the country's vice premier as the side near an agreement. plus, we give you the details on jeff bezos' divorce. the couple announced the amazon ceo will retain 75% of the stock in the company following the split. tesla's stock is taking a beating today, on pace for his worst day in three months. we dig into the complications surrounding its ceo elon musk. quick check on the major averages here. we do have a bit of a mixed picture. it has been a lackluster trading session. the s&p 500 now in negative territory.
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[no audio] semiconductors also today and there is a little bit of pressure. is after the philadelphia semiconductor index closed at a record high yesterday. interesting to see this path upward has been compounded with the prices of dram plunging. this is an interesting dynamic because we are also expecting samsung to report later today. they have also warned that they will miss analyst estimates because of prices of memory
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chips falling. at the same time, analysts are more confident that we could see those prices bottoming out, which will lead to a better second half. amanda: of course, lots of talk about where the economy goes in the u.s., does in version mean coming recession? we got the jobless data today that suggests we are still seeing a pretty strong economy, some pockets of weakness, but a 49-year low on jobless claims. shery: especially when it comes to those march job numbers. we are expecting them on friday. the expectation right now is that payrolls will increase to 175,000, rebounding from ofruary's anemic pace 20,000. on implement study at 3.8%. average hourly earnings also 0.3% per a steady year. mckenzie bezos saying in a tweet that she has finished the
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process of dissolving her marriage with jeff bezos. and that she is giving him all of her interest in the washington post and blue origin, as well as 75% of the amazon stock, and voting control of her shares. let's bring in that day from seattle. nets go through jeff bezos' worth. you can see the function on the bloomberg, and you can see where he stands with his control of amazon, washington post, and so forth. what is this telling us about jeff bezos' control over amazon? the currentlot of generation of technology giants, jeff bezos did not exert exerting control over amazon, owns 62% of the company, but there are still questions when the company announced they were getting divorced, what would happen. would his wife push for a seat
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on the board, a greater seat on the board? retains full control of the stake that they own, and will keep ownership of three quarters of that. along with being a remarkably amicable thing for her to do, was there concern in the marketplace about some of that turmoil, does that take that off the table in a way that will be a relief to investors? not seem toock did react a ton to the news, to the divorce or this morning. there was some thought that because washington state is a property state, any assets acquired over the course of a marriage, and there is no agreement, the court could split that 50/50. jeff retains more than what the courts would have decided in this case because of their agreement to come to terms. shery: also interesting that jeff bezos will get control of the washington post and blue origin as well. matt: that's right.
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hard to say completely personal projects, but definitely things that just did independently from amazon, spent time on, in addition to the voting stake that he will have an amazon. he will retain ownership of the blue origin and the washington post as well. amanda: we talked yesterday about the breaking story on facebook data being found on amazon web services. any follow up on that today, implications for either? neither company seems particularly fussed in the market. partiallyink that is fatigue from these kinds of breaches. facebook was hammered all year last year. one thing we are following up on is what are the responsibilities of big cloud providers that store all of this data, to help secure it. amanda: we will keep watching. thank you, matt day. front and center.
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h radio with china has to be great, according to donald trump. he told reporters that in the last hour. the president is set to meet with beijing's top negotiator at the white house later today. for more on what we should expect, we have sarah mcgregor. policyds our economic covered in washington. lots of optimism here. i don't know how you interpret great, but are you feeling as good about this as he has? sarah: all eyes are on this meeting that we have today. the expectation is we may here today a date for trump and xi to meet for a signing summit. that would not mean that a deal is totally complete. they may have to agree on some final items, more negotiations to iron out the details. also we may hear from trump that there has been progress and that talks will continue and the intention is for him and xi to meet. i think we will get a signal today on where these talks are
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headed and that is something that has been missing for a few weeks. we keep hearing the word progress but today we should get a firmer idea of what exactly that means. shery: there has also been a decision by the u.s. to tentatively sell fighter jets to taiwan. good other geopolitical tensions get in the way? -- sarah: oures sources have told us that that is not a formal part of the turks, but whenever there is a new wrinkle added to the relationship that royals those tensions between the countries, you can imagine it doesn't help when you are trying to get a negotiated deal. again, we will be looking to see if trump says anything about that. we know he has intervened in other cases where china has asked him to do so, like the case of zte. anything that he says on that will be very interesting. amanda: we did hear from him tariffs.mexican auto
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let's play the clip. if the drugs do not stop, mexico can stop them if they want, we are going to tariffs cars. if that doesn't work, we are going to close the border. i think that will work. that is massive numbers of dollars. say, all threeto countries are waiting to ratify nafta 2.0. this is a new wrinkle, now drugs, not just immigration. obviously alarming for the auto industry. how alarming from the mexican side? sarah: absolutely. i'm sure mexico is raising its eyebrows with the comment and wondering how serious trump is. he has a report right now from the commerce department. we don't know what is in it to him about it will determine whether auto exports are a national security threat. trump has not made a decision on that yet. clearly, he is holding it out as a threat. ere resolveds w
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as part of this usmca, which has not been signed, i think exit, he meantwhat exactly by that, and if it is even allowable. shery: thank you for that, sarah mcgregor. coming up, elon musk has arrived at a manhattan court for a content hearing. that conversation coming up next. this is bloomberg. ♪
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shery: this is "bloomberg markets." i'm shery ahn in new york. amanda: i'm amanda lang in toronto. shery: tesla reporting a sharp
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drop in car deliveries, and at one point the stock falling as much as 11%. we are talking about a significant short when it comes to those deliveries. we are talking about model three production only getting 2% from the fourth quarter while .eliveries fell 28% -- 20% in total, only 63,000 vehicles delivered in the third quarter, down more than 90,000 from the fourth quarter. amanda: raising concern about the demand for this product. this is really disappointing. you can see it showing up in the stock. as you mentioned. meanwhile, elon musk making no secret of his many roles. ceo, on jupiter, and it turns out, celebrity tech support. you may have seen sheryl crow tweeting about her car being stuck in a parking lot, and mosque chiming in with a -- musk chiming in with a fix.
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here is what sheryl crow said. musk writes that, glad that you liked it. if you are sheryl crow, you go right to the top. i'm not sure if we are going to get that kind of response, but of course, if you are sheryl crow. amanda: twitter has been at the center of trouble for elon musk. he has arrived in manhattan for issues over the sec. those, let's zero in for who forgot. what is being heard today? >> thank you for having me, first of all. the sec started this proceeding by filing a motion asking essentially that mr. must be held in contempt. the content request is based on a consent decree that he signed with the sec some time ago in response to an earlier tweet about going private.
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that consent decree says basically that mr. musk will preclear his communications on twitter henceforth as part of what is called the disclosure controls of the company. musk team says that they have tried to be in line with the settlement back in september, saying elon musk dramatically reduced his tweets about tesla. is that enough? thomas: no, it is not. there are couple of questions that you are looking at here. what did mr. musk tweet, and did he preclear it? that is what the decree says, that is what he said he would do. it is just simple to me. to keephis word, he has his word to the shareholders, to the sec, to the public. on the other side of this, though, the sec is not a prosecutor. they are not supposed to be nitpicking stuff.
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they are a regulator. what they want is good corporate governance and good information given out to the shareholders so they can decide what they want to do one way or the other. there is a significant question here, i believe, as to whether or not the sec should have brought the case the way it is. as much respect i have with the agency. amanda: of course, history is corporatebig deep-pocketed with lots of litigators, entities can fight the sec successfully. how important is it, having brought it, that the sec is successful here? this case is critical for the sec, as well as mr. musk . each one of the sides has lots to lose. each one of the sides actually has little to win. if the sec loses, they look bad. if mr. musk loses, he looks bad because he looks like he is not keeping his word. if he is not keeping his word, when he says, by my car, why should you, why would you take
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his word for it? there is very little to lose here and a lot to gain. that is the difficult issue for both sides of the case as they square off. sitting at thew defense table flanked by three lawyers. if you want to watch that for ive is thes, t l function on the bloomberg. he was not required to be at the hearing today. will it help that he made an appearance? thomas: it will. i think it shows respect for the court. on the other hand, coming into the hearing, one of the more interesting facets as a trial lawyer is this. having an waved evident year hearing. they are not going to put out any evidence or witnesses. mr. musk is there. papers,ook at the sec they repeatedly challenge his credibility. if you want to challenge
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someone's credibility, there is one simple way to do it. dut them on the witness stan and cross-examine them. the sec way of off, and you have to wonder why. amanda: will he get an answer to that question? >> i doubt it. the judge is a very good, experienced judge. that is what the parties want to do. if i was the judge, i would like to see mr. musk cross-examined, see the sec get up and say we don't find your explanations credible, and then cross-examine him and develop the evidence. that is a critical thing here. i think it says the sec's evidence is not very good. say, this is the regulator. other legal shoes to drop in his near future? thomas: not on this issue. the question we will come down to is what will the judge do with this? that is really what we are looking at here. knows that ifdge
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she ruled against the sec, it really damages their credibility as a market regulator. they cannot be every place. they can only do so many cases come bring so many cases. so when they lose face, people stopped trusting them. if you don't trust them, they don't come in. a legendary sec enforcement chief said years ago, when asked, why do people come in and incorporate with your programs, he says because they trusted me. they knew i would try to do the right thing. if the sec loses that, they have lost a lot. that is why they have a lot on the line. mr. musk has a lot on the line as well because he has to sell cars. no matter what happens, whether he is ceo or not, he is the company. if you don't trust him, why by his car? shery: thomas gorman, thank you for joining us. another mega ipo in 2019. trade with shares jumping after its public debut. this is bloomberg. ♪
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amanda: this is "bloomberg markets." i'm amanda lang in toronto. shery: i'm shery ahn in new york. we are seeing brent crude breaking above the seven dollars a barrel since first time of -- from november. expectations of a u.s. china trade deal also we could see new sanctions honoring in crude that is pushing oil prices higher. brent above $70 a barrel for the first time since november. in other news, another mega ipo, tradeweb market shares jumped in its debut after raising $1.1 billion in the second largest u.s. initial public offering this year. a few moments ago, bloomberg set done with the tradeweb ceo and cofounder. >> we have done some things in the past. for us, we always say the past
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is a bit of prologue. we focus on building networks, we focus on software development. we will look at a variety of things, and we will be opportunistic. welcomeor more, let's our managing editor for u.s. deals. start for 2019ow when it comes to ipos. now we see lots of activity. elizabeth: full steam ahead after lyft last week. thes all systems go after u.s. put a slow burn on beginning of the year. now there's a whole host of companies that have lined up. tradeweb is a little different. a tech company for sure, but not among those start of unicorns. this is a profitable company that's been around for years. if know what it does. a slightly different profile of company coming to market. amanda: because it is not a consumer company, is this a sign of health for the market, being so healthy? elizabeth: they upped the size
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of the offering twice. it jumped in the early trading by more than 25%. now it is trading steadily. obviously, it is just day one. we saw the same thing with lyft, so we don't know what will happen, but it is a positive start. shery: thank you so much. amanda: you can catch more of bloomberg's interview with tradeweb's ceo at 2:30 p.m. new york time today. from toronto and new york, this is bloomberg. ♪
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mark: unless the country does more to stop migrants trying to
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enter the u.s. speaking to reporters at the white house today, the president also called on mexico to stop the flow of illegal drugs across the border. if the drugs don't stop, mexico can stop them if they want, we are going to tear if the cars. if that doesn't work, we are going to close the border. i think that will work. that is massive numbers of dollars. mark: the president says he is giving mexico a year to comply before following through on his threats. presidentialcratic race is getting more crowded. oh how democratic congressman tim ryan says today he will seek his party's nomination to challenge president trump the rhine is a nine-term congressman and has been traveling to iowa and other states with early primaries, testing the waters for a presidential bid. ryan unsuccessfully challenged nancy pelosi for minority leader in 2016. syria says the trump administration is lying about withdrawing troops fro


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