Bloomberg, Facebook, Joe Biden discussed on Bloomberg Businessweek
Today, we had the equity market dropping from all time highs, The movement toward the fresh stimulus seemed to hit stall speed of it. Senator McConnell, saying that Democrats poured cold water on his latest offer, although a short while ago we heard from Treasury Secretary mean Yushin, saying talks between the GOP and Democrats are quite constructive. At the end of the day. Tech was the big loser kind of weighing heavily on markets, particularly the chips. Semiconductor stocks fell with the Philadelphia Semiconductor Index down nearly 3% today. That's that compa dropping nearly 2%. That's all from a record high s and P down from a record as well with the loss of about 8/10 of 1%. Dow, weaker today by nearly 4/10 of 1%. Federal antitrust officials, along with a coalition of states are suing Facebook. Details on this will be forthcoming. Allegedly, it's over the abuse of Facebook's dominance and moves by the company to crush competition stock was off about 2% in the regular session. On the other hand, we had door dash, rallying more than 85% on its first day of trading this company food delivery yet to make a profit. Airbnb is now leaning toward pricing a typo. We're told between 67. $68 a share. That's according to Dow Jones, and we have a 10 year Treasury last quoted in New York 93 basis points, so we were up just a bit today and yield. Let's get to San Francisco for a news update. Now Ted Baxter in the Bloomberg 9 16 years from it. All right. Thank you. Douglas, UK Prime Minister Boris Johnson, EU Commission President Ursula von DeLay and are giving Brexit negotiations. More time. They say that there are still gaps real big gaps if they're going to get anything done, French President Amanuma Kron has had a phone conversation with China's President Xi Jin paying they both say the developing a better relationship is important of the globe. The House and the U. S. Has approved a stop gap funding bill to avoid the weekend shut down. Also reporting here and breaking developing news today that President like Joe Biden will pick Katherine Taya's U. S trade representative. With FDA emergency use our authorization for the Fizer vaccine expected tomorrow. The head of Operation Warp speed, Lieutenant General Paul Ostrowski says trucks will rule. Now they say 2.9 million doses will go out. They will hold half until the second shot could be administered and then move on a brand new Bloomberg analysis shows the U. S ranks behind. 31 other countries in pre purchase doses per person. We're going to go into that in more depth in about 10 minutes here in Bloomberg in a live interview in San Francisco, I'm Ed Baxter. This is Bloomberg are Brian. Thank you, Catherine Tie That's an interesting pick by Joe Biden. She has been the lead advisor, the chairman, the House Ways and Means Committee, and obviously, given the nature of the work we do here, she's going to be very much in the discussions. Going forward. All right, 20 minutes past the hour. Let's say good morning to Nadine Turman, chief investment officer of Soul Steen Capital. So it's something of a sell off today in technology in particular, and I suppose too many investors, Nadine, they would they would like to see that as long as it's not tied to Anything a major development a major change and and I'm not sure that Facebook fits that. But obviously there's a big discussion on Facebook. Whether not, that means much to the market. If WhatsApp or or instagram is separate or together, The way is this the type of cell off that you think is one off or maybe could be more sustained. Like we saw back in September. 10%. I think we have to watch what happens with the stimulus to think that people were hopeful yesterday. And then today less hopeful and obviously check ticket on the chin. But the same time I think if you saw Austin must feel tomorrow, you'd see it rally back up. What we're looking at is really the acceleration of growth of GDP across the board. And so we look at this is, you know, tippy toe in the water and start buying. Well, exactly By what if that's a question? I mean, the thing is that that perhaps has moved out of tech has bean essentially something which is all about this rotation, wouldn't you say towards value and perhaps small caps, and, you know, the thing is about small caps is and you've seen with Russell 2000, then is that it tends to be late cycle. Would you say that? That is where we are All just get this really got a lot more to go. The rally definitely has a lot more to go, but you really have separated it. The lot of the small caps the services things were beaten up rally because of the vaccine, hopeful that there'd be a stimulus package and now that there's some types of concerns of a delay of that or what what's going to be actually in the stimulus package? I think people took the money off the table. But the fact of the matter is they're gonna do something. Do something at some point. And what we're really seeing is an acceleration of GDP across the board. I'll be it from low based levels, but that tends to have a chill wind for equities across the board. And so you're right about asking. Where do you put the money that broadly speaking is supportive of equity market. Do both stimulus and also the vaccine progression. Do they both support cyclical on value even more than growth? You know, it's a little bit different. You have to take value and really separated in the pieces because people like to look at it, But what we're not talking about is over leveraged businesses right now. What we really want to say, you know, is it small Mid cap is its services is it's cyclical in terms of the type of businesses that aren't gonna bounce that are gonna bounce bag because if you're looking at rocks draws until restaurant you're actually operative. It's gonna be a while, So you have to parse out each of these different items and say, Well, which one of those Should benefit sooner. That's where I want to invest, and you can do it across the sectors. But you can't just kind of broad brush and say growth versus value technique context You have to gonna dig in a little bit deeper. I mean, that's why you brought him up Investor ultimate in the Dean. Tell me the thing here is that we have these equity markets going great guns. But how does that How does that justified looking at the macro economic environment. Number one is there's a lot of cash on the sidelines to Deccan Come in Number two is that what you tend to see is a capital conflict from different places you've seen in the last month. Capitals flowing out of gold. It's clean into big point. So what you really have to watch is where the flows of capital where they coming from where they going to Obviously you want to be ahead of time into the places like energy. Bitcoin could be Canada stocks. Some of the stacks out there where the capital is going to not away from..