tv Bloomberg Markets Balance of Power Bloomberg April 25, 2019 12:00pm-1:00pm EDT
on the brief today, kevin cirilli at the white house on joe biden's head for the oval office. our reporter in paris on emmanuel macron laying out his reforms for france, and in washington, ben bain on a revamp of the volcker rule. kevin, it finally happened, what does it change? kevin: it resets the crowded democratic primary field. joe biden arguing he would be able to win back voters president trump carried in the 2016 race in portions of the states like western pennsylvania, youngstown, ohio, michigan, as well as suburban detroit. he will take a working-class message directly to their. -- directly to there. is reentrant's to the race is also a very different democratic party. he has access to the obama donor class but does not have the
opportunity to make inroads with democratic-socialist, the lane occupied by bernie sanders and elizabeth warren. it is a crowded field and a field that is going to be competitive, but no question, behind the scenes, biden-world is very optimistic and a lot of the republican strategists i speak with say former vice president widen would pose -- would poseent biden the biggest risk to president trump, but they also say publicly they are not worried about anybody. risk for the biggest joe biden scanner candidacy the primaries or the general election? kevin: primaries. particularly that fired up democratic base. how will the former vice president take that pitch on the campaign trail beyond working-class voters and to vote -- to folks who helped elect alexandria ocasio-cortez.
remember senator joe biden represented delaware, a large state with large financial institutions and having clout in that space. i'll be interesting to see how he translates that record in a progressive field. david: many thanks to our chief washington correspondent on the front line of the white house. let's go to paris. we had emmanuel macron ready to give a speech on the day of the notre dame cathedral, and now we have a sense of what he is planning. is that correct? >> this major speech was supposed to happen 10 days ago. everything was canceled by emmanuel macron because of the fire at notre dame. a lot of what he was supposed to announce bout then has since filtered out in the french media. we know some of the response he was supposed to bring to this yellow vests protest that has paralyzed every major city in
france every saturday for the past six months. emmanuel macron is planning new tax cuts for the middle class, also he is planning to announce indexing of small pensions to inflation, normal closing of schools or hospitals during the rest of his mandate until 2022 and also some reforms like shutting down or at least reforming the college that has trained the french establishment for the past 50 years and that has been criticized for the lack of diapers and the of the french elite -- the lack of diversity in the french elite. --s is turning into a major because we know a lot of the cash emmanuel macron -- emmanuel macron will have to go a new announcement and be a bit more ambitious, otherwise this may be
considered by the french too little, too late. david: it is 10 days later. is also somewhat harder? is the bar raised in the reaction by the yellow vests and others in the fact that so much money was raised so fast to rebuild that wonderful cathedral and not going to address the issue of the yellow vests? caroline: absolutely. the yellow vests have criticized this money raised for notre dame. nearly one billion euros at the moment, saying some of the money could be used to respond to the social prices in france. caroline, our colleague in paris. many thanks. let's go to washington and the white whale that is finally going to get spear -- the reform of the volcker rule. is it finally coming? ben: certainly wall street banks hope it is coming. of all the wall street reforms, this is the one big banks hated
the most. jamie dimon said if you're trying to decide if you will do -- you or not, lawyers need a lawyer and psychologist by your side. the five government agencies, the fed, the securities exchange commission, are working on a fix that would deal with a lot of the complaints that wall street has had for years. confusing, the way a short-term trade is considered automatically proprietary and banks do not have to prove their intent was not, that would go away and be based on something banks already do. this would be something banks could then feel would be cleaner , an easier way to go about things. this is something that has been a priority for the trump administration in terms of their financial regulation from the beginning. we now understand there is a fix underway and it could happen over the next few months.
we might get a cleaner look at exactly where this is going. david: give us a hint of what the fix might be. it is so subjective. how do you do that? it is too hard to make the judgment call. do you illuminate the intent requirement? ben: that is kind of what will happen. we understand right now on the books there is this presumption that if you're executing a trade , having it on your books for less than 60 days, it is proprietary. it is not the banks that have to prove to regulators it is not. this would replace that with the risk capital -- banks are to keep track of their trades this way. if they trick it into the trading bucket, it would be considered a prop trade and they would have a cleaner way of showing that. bain'smany thanks to ben for his reporting from washington. now we turn to emma chandra. the: a mixed picture in
u.s., both the s&p 500 and nasdaq trading in the green. the s&p 500 a solid half of the sectors in the s&p 500 gaining on the day. the big difference is the dow. falling almost .5%. the issue is a big slump in industrial shares. let's switch up the board to show you a chart that shows the detergents between the dow and the s&p 500. you can see the red bar at the end of the screen suggesting the dow, the diversions between the dow and the s&p 500 is the biggest in six weeks. the biggest wait for the dow is 3m. you should be able to see how the shares of three emaar 3m are and leading -- of falling and leading the industrials lower. down 10%. the biggest loss for 3m since the 1980's. earnings much more's the expected and raising fears among investors that the concerns of p growth they put behind them are
raising their ugly head again. ups also down on earnings, laming winter weather's and automation falling. the counterweight is tech doing much better. look at facebook, up 6%. microsoft hitting a record today and its market cap heading toward that $1 trillion mark. david: thanks so much to emma chandra. coming up next, we'll the third time be the charm for joe biden. the former vice president announces his run for the white house. his decades of experience could be seen as an asset or liability. we talk about which is which next. this is bloomberg. ♪
david: this is "balance of power ." on bloomberg television. i am david westin. mark: former vice president joe biden has made it official. he is running for the democratic nomination for president. mr. biden made his announcement on a video on social media. he made his entry into a field that now includes 20 candidates. we will have more on this story coming up. the father of two of the suspected suicide bombers has been arrested. the man has been described as a wealthy spice merchant. he is being held on suspicion of helping his sons. almost 60 suspects are being held. the attacks killed more than 350 people on easter sunday. they were aimed at christians and foreign tourists. in mozambique, just weeks after a cyclone caused massive damage and killed more than 1000 people , the country is bracing for another storm. andhts have been suspended
residents evacuated as the cyclone picks up steam. the storm has winds of up to 115 miles per hour. foreign leaders gathered at beijing for chinese presidents xi jinping's signature foreign initiative on infrastructure. he met with egyptian and the hungarian prime minister on the sidelines of the belt and road forum. developing nations have welcomed the initiative to increase trade by building ports and other facilities. the asian development bank's have said the region needs $26 billion of investment i 2030 to keep economies growing. 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 am mark crumpton. is bloomberg. david? david: joe biden is running for president for the third time but
this time the former vice president is entering a crowded field and a new and uncomfortable place for him as a front-runner. >> if we give donald trump eight years in the white house, he will forever and fundamentally alter the character of this nation, who we are, and i cannot watch that happened. david: our next guest wrote at the dilemma at the center of joe biden's run, arguing he would be the most experienced new president ever but also the oldest. we welcome the managing director for seven as crystal ball. good to have you. experience, how much will that cut with voters at the polls? want whates voters they do not have and in voting for donald trump quite narrowly, the united states opted to go for the first president ever who had no elected experience or served in the military. it would be quite a shift if four years later joe biden got
nominated by the democrats and defeated donald trump and would the the most experienced new president ever. the american public can be like that in that they sometimes want what they do not have. from that standpoint, biden pitching himself as the experienced hand might be a good way of going after trump. the flipside of that is that biden has been in politics for decades. he has cast a lot of votes he will have to defend. he has held some positions he is had to change or modify and it is possible that he will be out of step with where the democratic party is today, which may be looking for a younger and more liberal candidate. that is the challenge for joe biden but he does start as a leading candidate. i would not say he is lead is ironclad or huge, but he is leading the polls in most places. david: we on bloomberg heard from a former presidential
candidate, howard dean, who was blunt about the point you just made. this is what he had to say. >> the problem is going to be age. our party is being taken over by people who are young, by women, and by people of color. that is our core base and that will be what america looks like. challenge, reach the new generation that got into politics and was largely responsible for the 40 seats in 2018. david: what about as he said, is he too old? kyle: i do not know of you is necessarily to old. howard dean makes good points about how the democratic party is increasingly younger and more diverse. a lot of people who are now effectively members of the democratic party are affluent suburban, highly educated white former republicans who may have voted for hillary clinton in 2016 and voted democratic for the house in 2018.
joe biden's announcement video was directed at those voters, the people who may have been republican in the past but donald trump was a bridge too far. the problem for joe biden is that that video was directed at the general election audience and he has to get through this primary first. i will say there are still a lot identify aso self moderate or even conservative in the democratic party. that would be for his base and also a part of that group is some of the diversity in the democratic party. african-american voters, with whom joe biden is polling well, african-american voters are not leading the liberal charge. if you look at ideological self identification, self identified liberals are growing much more among white voters than african-american voters. if biden can create a fusion among older, white or moderates in the democratic party and african-americans, that is a decent base. david: you left one group out,
women. we had a female candidate last time. can we really have a white male run is the standardbearer of the democratic party? kyle: i think that is also a challenge. when democrats have the option to vote for a woman candidate in some of the many house primaries in 2018, they like having that option, and yet here we have this field where in most polls, roughly half the vote is going to joe biden or bernie sanders, two older white politicians who have a lot of experience. i will also say the polls are not necessarily determinative. a lot of people are still making up their minds and they may gravitate toward a younger candidate or a woman or a person of color or both. david: file, great to have you back with us -- kyle, great have you with us. we turn back to the robert mueller report and the controversy that has developed
over evidence cited in the report. thatding to page 112 point, a russian businessman texted michael cohen, stop load tapes from russia but not sure if there's anything else. the subject of the report has now come forward to say robert mueller got it wrong. we are joined by the subject of the report. welcome. are you russian? >> thank you for having me. i wish i was here for better reasons, obviously. this is probably the first time somebody asked me that question on tv it is simple. i'm not russian. from 2017 citizen with georgian heritage. there is nothing wrong to be russian, it is a great culture and i know many great people who are russian, but i am not russian. that is a fact. david: there's a difference between georgians and russians.
giorgi: it helps to understand how little we know about that part of the world. that world is not the soviet union, it is not just russia, it is many different countries that are emerging. georgia has been a success in georgia is one of the most in a product countries in that part of the world. david: beyond your nationality, there's another issue you have taken. it said "stop flow of tapes." you provided the physical tax, and the text messages said "stop flow of some tapes." ite: it is a very -- giorgi: is a very important distinction. anyone wants to be is known as part of the footnote, especially when that footnote is wrongfully talking about you. david: let's go back to what has happened. you were at a party and somebody
talk to about this. did you know what was in the tapes? kyle: i was not in the party -- giorgi: i was not at the party. i was at my house in connecticut. the friend was in business with the trump organization and i was concerned about the image of the trump brand. we know the access hollywood tapes were coming out, a lot of conversation. a friend of mine told me somebody was bragging about some tapes at the party. a friend ofy texted mine at the time, a business associate, michael cohen, and said exactly what i said. stop flow of tapes. there's nothing to the rumor of tapes overseas they are talking about. we had an exchange, and the exchange explains what i meant. david: at some point there was this dossier that was reported involved someedly
tapes. did you know about that at the time you sent the text? giorgi: absolutely not. david: why did you think it was that important to go to mr. cohen? giorgi: it was important for me and the trump brand and the republicans. andad a license agreement we were attached to the trump band. the last thing you want is to have any kind of damage to the brand. that was one thing i realized i had to do that in terms of concern about the brand. i knew that michael cohen was working for the trump organization and there were some rumors out there he should have known. david: was there any follow-up with mr. cohen or people in russia with those tapes, what was on them, whether they were being sent over, anything about it? giorgi: a couple different things in the footnote. the reason i am here is to make it clear to everyone it was so shocking to me that i found out i was the guy out there destroying tapes. people that know me said is this
you? that is where everything started. i realized i had no knowledge of the tapes, i had no knowledge of the concept of the tapes, and the most important part about all of that is i had no knowledge of any dossier which is unverified, by the way, as we now know. has not beenction followed through in any way, shape or form. this is one isolated incident, text messages back and forth. and i said to michael cohen, someone is bragging about the tapes, it is probably not a big deal. i'm sure there are so many stupid people in the world, and with a lot of great people in the world we still have some stupid people and he agreed and we never followed up. that is what i told the prosecutor. it was a candid conversation. david: thank you very much for dropping by. live from new york, this is bloomberg. ♪
david: facebook is our stock of the hour, trading at its highest level since july of last year after the company reported strong revenue growth and user engagement. emma chandra is here to tell us about it. emma: the stock added $4.5 billion to zuckerberg's personal fortune, not a bad day's work, winning unanimous praise from analysts. take a look at the bloomberg. i've a chart which shows you how those price targets have moved up. those are the blue lines. only two bears remain for facebook, applauding the revenue and what it suggests about user engagement and how advertisers are helping them short off those privacy concerns we would be talking about over the last year. facebook did say they were setting aside $3 billion in relation to that privacy inquiry and the charges could cost $5
billion. it seems the analysts and investors are not so worried, which is interesting given that $5 billion is a lot of money. david: it is a lot of money. how much was the market cap today? emma: about $40 billion. they do not need to worry about it so much. you talk about regulation, it is something facebook and shrug off. david: an extraordinary story. up next, a democratic congressman from massachusetts thehen lynch weighs in on growing tension between his party and president trump as well as joe biden's presidential bid. that is next. this is bloomberg. ♪
agency has cleared patrick shanahan of wrongdoing in connection to claims he used his official position to help his former employer boeing. and ethics watchdog accused shanahan of making statements promoting boeing and disparaging competitors such as lockheed martin. shanahan spent more than 30 years at boeing. jong-un has asked vladimir putin for help in resolving a nuclear stalemate with united states. the two leaders met in vladivo stok. chairman kim's last meeting with president trump broke up in february in vietnam without a deal. libya has asked the united nations security council to investigate what it says are violations by the forces attacking the capital tripoli. officials say civilians have been displaced and killed, and private and public property has been destroyed. the complaint also claims children have been recruited to fight in the war.
the one health agencies as the fighting has killed more than 270 people and wounded nearly 1300 to tip began earlier this month. the fbi and irs raided the homes of baltimore mayor catherine pugh and her city hall offices today. and they and five of her staffers are unpaid leave amid a scandal over her business dealings. marilyn governor larry hogan has called on her to resign. 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. you, mark.k house democrats are determined to summon members of the health testifywhite house to at a number of pages including the mueller report. the president is just as determined for them not to appear. >> the democrats are trying to win 2020. they will not win with the people i see, and they will not win against me. the only way they can maybe luck you and i don't think it
will have been -- the opposite is what many are saying -- is by constantly going after me on nonsense. david: we welcome stephen lynch, democrat from massachusetts. congressman lynch serves on the house oversight committee and comes to us today from washington. good to have you here. stephen: good to be here. david: the president said he would not have his people supply -- comply with subpoenas. what is at stake here from your point of view? stephen: well, the rule of law. if the president is not going to cooperate with congress and making sure the laws are faithfully executed, then the rule of law as we know it in the country is threatened. i happen to think with an independent judiciary, many of the subpoenas, perhaps even all , andem, will be answered
will be directed to be answered by the court. that is sort of where we're at right now. there are multiple committees, as you mentioned. jerry nadler at judiciary. mr. neil is the chairman of ways and means. mr. cummings, on our committee. i believe mr. schiff as well on intelligence. we all have outstanding subpoenas that we have received zero response from as many as seven of the executive department agencies we sought answers or materials from. understand it, congress cannot enforce its own subpoena, it has to go to a federal district court and have the court backup that subpoena. it isour point of view, clear that democrats will go to court on this if they need to? stephen: of course. for the most part, the way it usually works -- i've been in
congress 18 years -- usually you get some degree of cooperation. there may be fights here and there over one item or another, but what is extraordinary here is, the trump administration and the president himself had delivered zero documents. i think that hurts them in federal court. if they were saying we are fighting over one or two items, and congress is not entitled to these items because of privileges or things like that, that would be arguable. but when you say congress is entitled to nothing, that is a tougher argument, i think. sort of sets up a constitutional crisis. we feel very strongly that we will succeed in our arguments. our demands are reasonable under the circumstances. there is certainly reasonable cause and a sound legislator
reason for us to have these documents. david: you mentioned the possibility of a constitutional crisis. from my experience, when there is a constitutional crisis, it is hard to get other work done. you serve on the oversight and infrastructure committee in the house. pelosi goingpeaker to meet with president trump on tuesday about infrastructure. what is the risk, including the risk to democrats, of pursuing these subpoenas, investigations, or running from getting other things done like infrastructure? stephen: that is a very astute observation, and it can create this adversarial relationship and also consumes the attention and energy of so many members of congress, and our staff while we are fighting over subpoenas, back and forth in the media. it is not helpful. at the end of the day, to get a good transportation bill done, as speaker pelosi has
you needaccomplish, cooperation on the other side. the atmosphere in itself does threaten our ability to get other things done. there is a hole in the of issues apart from thele mueller report, the theatrics that are going on surrounding the request for information and subpoenas. david: looking at the half-full part of the glass, the president says he wants to move forward on infrastructure, even criticizing the pursuit of them will a report, saying let's get back to infrastructure. the you think there's an opportunity on a bipartisan basis for a comprehensive approach to infrastructure? stephen: if he is serious. remember at the beginning of the term of his office, he put forward a transportation bill
that was really a farce. generally the way the transportation works is the federal government pays for 80%, and then we ask states to come in with about 20%. could be 10%. that is generally the way that bill works. in the president's last proposal, he wanted to reverse that. he wanted the states to come up with 80% of the funding for and use somee mechanics there where the federal government would come up with 20%, and then we would bring in the private sector. that model will not work. this, weserious about should be able to get this done. even people who want small government believe that congress, the federal government should be able to handle infrastructure requests, should be able to maintain our infrastructure on which our system of commerce thrives. 45,000 bridges in the
u.s. today that have been ruled to be structurally deficient. ron worker. i i used to build bridges for a living. there is a lot of work to be done here. i don't want a major bridge collapse in this country, which will happen eventually, if we continue to ignore the maintenance needs and the building needs that have to happen to maintain that system. david: finally, we also have a presidential election coming up, something that can distract people in congress across the country. joe biden announcing that he will run. how do you as a democratic congressman pick among your friends? i think it's incredibly important that we choose the candidate who is the best person to go up against
president trump. i think it is joe biden, i really do. he is a moderate. we need to win wisconsin, ohio, pennsylvania, michigan, that we lost last time. joe biden is uniquely situated. he is a known commodity. because everybody knows who he is, eight years in the white house, several decades in the u.s. senate, he is a known commodity. i think his reputation is more resilient because people know him. people know him and trust him. he is a moderate, common sense. i think he has a better ability to counter president trump, who will be a tough candidate to beat. an incumbent president, especially if the economy is humming along. if democrats mess this up, they moreoing to have four
years of donald trump, so they better choose wisely. i think joe biden is our best chance of success. david: thank you for your time today, congressman. stephen lynch, coming to us from massachusetts. looking for help for moscow. north korean leader kim jong-un meets with russian president vladimir putin. what it could mean for future nuclear talks. this is bloomberg. ♪
david: you're watching "balance of power" on bloomberg television. i'm david westin. kim jong-un having another historic summit but this time the north korean leader is not sitting down with president trump. he met with russian president vladimir putin for the first time one-on-one in the russian port city and use the occasion
to ask for help. what was this all about? there are a number of layers to this. the leaders had a three-our meeting. kim jong-un asked president putin to be one of his go-betweens with president trump. kim jong-un has been long yesterday with the diplomats and aides that president trump has sent over to work out the details of any future agreement. you recall the february summit in hanoi fell apart. repeatedly has criticized people like mike pompeo and others. he is apparently going to putin to weigh in on this and maybe have a direct line on how they can make a deal. david: this kim jong-un know something about influence that vladimir putin has over president trump? in some ways, this trip is an
opportunity to poke a finger in the administration's eye. we are not going to sit still while these talks linger. we are going to work on our relations with russia. russia hosts a lot of north korean workers. they do have a small shared border. any talk about sanctions requires russia's cooperation. north korea would love to drive more of a wedge between the u.s. and russia when it comes to things like the economic sanctions. david: what about the role of china in all of this? historically, we know that they are under some influence from china. >> china is still the biggest player here if you are talking about the impact of sanctions on the north korean economy. you have to have china on board. i think it's a chance for kim jong-un to show he is not entirely dependent on china. he has had sometimes revelations with beijing. on his perspective, it's better
to diversified a little bit. starting in 2011, he had not traveled abroad. this is now his fifth country that he has visited, so he has gone on a bit of a diplomatic charm offensive, in a way to pressure the u.s. to back down on some of its demands. some sense of the leverage the kim jong-un may have in this. president trump acquired such a victory already. if they went back to testing missiles again, that would be a real blot on the copybook. do we have any sense of the degree of pressure on kim jong-un because of these sanctions? >> from our reporters in south korea, we know that sanctions have had an impact so far. when you look at any of the rough economic data that you get out of north korea, it's been tough on issues like fuel supplies, food supplies. -- it was an
embarrassing setback for him to return from hyundai on a 65-hour train ride without anything to show from his meeting with president trump. in the black box that is north korean politics, he probably has to show a little bit of firmness, toughness against the trump administration and say, i can go around and still meet other people. i can work deals with russia, china, other nations. he will go ahead and do that while these talks with the u.s. appear to be at a standstill. david: i want to turn to a store that you pointed out to me about allegedly a $2 million medical bill that north korea sent to the united states for the american student imprisoned over there. ultimately came back in a coma and died. >> right, fairly early in trump's administration. the report is that the u.s. was presented, before they released
him, with a $2 million medical bill, that most would look at as a ransom. they say a u.s. official sign that. we asked the white house for comment. we don'tders said discuss hostage negotiations. we have asked for clarity on that statement because the u.s. policy is that we don't negotiate for hostages. we don't know if there was a misstatement, or if there was a change in u.s. policy. certainly, a disturbing sign of how the north korean government operates when someone who they took into custody for allegedly stealing a poster in a hotel falls into a coma and dies, and the u.s. is presented for a medical bill for that. david: talk about another summit, president trump and kim jong-un have talked about it. any indication on when there might be another meeting if at all between mr. trump and kim jong-un? >> none at all. both have said it is possible. they seem to put faith in their ability to negotiate between
them, but a lot of these details you to be worked out at a lower level. there are no talks that we can see taking place right now. no talks directly between u.s. officials and north korea, but what about through south korea? talks going on between south and north korea? >> definitely talks going on between south korea and washington. the south korean president is very interested in finding a way to get the talks restarted. i don't know if he is working with north korean officials on that effort. has put amoon jae-in lot of his reputation on bringing these two sides together and want to see that continue. david: in the meantime, what do we know about the missiles and nuclear weapons in the north? we have not had the big tests that we had quite a few of for the end of the obama administration. do we know anything about the further development of nuclear facilities in the north? >> we have seen a lot of these reports from groups that look at the satellite images of north korea.
the widespread belief is that north korea continues to develop its ballistic missile program. it has refurbished some of the facilities that were destroyed over the past two years. dealng as there is no real signed, no certainty on where things are headed, we expect north korea to continue to work on those programs. ,avid: thank you very much bill. a great synopsis of what is happening in north korea. live from new york, this is bloomberg. ♪
we have time for a bloomberg exclusive. saudi aramco issued bonds earlier this month and now we may see more from the kingdom of saudi arabia. we spoke to the saudi finance minister today. this is part of what he had to say. is a result of what we said we would do. we implemented a significant reform, implemented significant discipline in the budget, revenue, and obviously oil revenue, and the combination of all of this resulted in the revenue we have announced. economists have looked through the first quarter oil revenues, and those rows in a way that is not explained by prices or production. is there another source of revenue coming through, maybe a dividend? >> we have always said that the revenues we received from saudi aramco are divided in three. we have the royalty, the tax, and the dividend.
we have regular dividends. special dividends every year. that can explain a lot. we receive royalty tax, dividends, and special dividends. >> does that mean that you are on track to beat the full-year deficit targets that you have? >> we are on track to deliver on our midterm plans of the fiscal program and will balance our budget by 23. >> when is the next international issue is going to come, do you suspect? >> we don't specify, but when the market is ready, most likely one more international tranche from sovereign. we are thinking about dollars, euro. as i said before, it is being planned. i cannot talk about it at this time. it depends on the market. >> likely in the third quarter,
fourth quarter? would you say the earlier the better given market conditions? >> we are watching the market, it could be in the third quarter but maybe earlier. of what could influence when the saudi aramco ipo could take place? >> it is taking place, we have always said it will take place. we made sure the investor community around the world sees what saudi aramco is doing through the bond issuance. it is a traffic company. the performance is very well disclosed. it is the largest company in the world, the most profitable company in the world. we will ipo it when it is ready. obviously, going through a significant transaction at the moment, clearing all of the antitrust requirements. that takes time. when it is ready, after that, we will go for ipo. >> what about valuation, is $2 trillion still achievable?
>> that is the market decision. david: that was the saudi finance ministers speaking today. you will hear more all through other day on bloomberg television. let's get a quick check on the markets. down the dow, the worst performer on the index, down 12% today. they had very disappointing earnings out today, saying they were surprised by the slow down. it does not seem to be reflected in other industrials, but going down.king dow other indexes are actually up. we are basically short of the middle of earnings season. we can show you how we are doing so far with 190 of the 498 companies reporting. on the right side, earnings surprise, on the left side, sales surprise. companies are doing much better on earnings, beating nicely.
that is being led by information technology and energy. no doubt, oil prices have gone up in the wake of the iran sanctions being reimposed. secretary pompeo saying he wants to do his best to take it down to zero. sign up for the politics newsletter on bloomberg.com and get the latest in your inbox every day. commodities edge is coming up. then, former australian prime d joinsr kevin rud bloomberg markets at talk about japan, trade, and more. this is bloomberg. ♪
alix: president trump takes a hard line on iran and issues no waivers, testing key relationships with allies and puts the ball in saudi's court. increases their bid for anadarko, entering a bid for chevron. tesla and panasonic. elon musk is in a twitter battle with the battery supplier, saying they are responsible for the constrained reduction of the model three. i'm alix steel. welcome to bloomberg "commodities edge," 30 minutes focused on theni