35 Burst results for "Bloomberg Interactive Brokers"
"bloomberg interactive brokers" Discussed on Bloomberg Radio New York
"The Bloomberg interactive brokers studio here in Hong Kong we check the markets for you every fifteen minutes on the show Bloomberg daybreak Asia and there's a fair bit of optimism in the markets to date second day of this work investors are are looking at and hoping that the pandemic might be waning in some key areas and so they are buying stocks is a lot of stimulus coming and we had some earnings from Sam song which were also a lot better than expected really and it leaves investors with just hoping that the impact may not be as bad as what was earlier feared Samsung boosted chip orders from data centers helping connect people who have been stuck at home and so those profits at Sam some have the stock up let me see what is it about one percent here at the moment up one point four percent in terms of the broader indexes the hang Seng index is up nine tenths of a percent and we have China coming back from holiday with a one point nine percent gain in the CSI three hundred copies up one point one percent the straits times index in Singapore two point one percent and the taiex up one point six percent Chinese stocks also seeing a little bit of of a gain in do you want as well you want steady here at seven oh nine ninety nine against the US dollar the dollar was weaker and helps a little down about a tenth of a percent for the Bloomberg dollar spot index WTI is trading at twenty seven fourteen so a four percent rally after being sold down during the US session is still quite a bit of doubt about what might be accomplished in a meeting of OPEC plus on this Thursday gold has had a pretty good run up one point three percent now seventeen hundred sixteen dollars a Troy ounce sorry that's a look at markets let's get you over to the desk with attacks from San Francisco all right Brian New.
"bloomberg interactive brokers" Discussed on Bloomberg Radio New York
"To from the Bloomberg interactive brokers studio in New York Sunday evening seven thirty Wall Street time on a day when the federal reserve here in the U. S. has taking emergency action and action to a cushion the American economy from the corona virus outbreak an emergency cut in the benchmark rate of a full percentage point we're at now nearly at zero want to bring in Bloomberg's Michael McKee he is our international economics and policy correspondent give me your sense of how markets might have been favored to to reactivate I mean we're seeing a little bit of disappointment I would say yeah the it's hard for me to separate it it's been so many headlines going across while we've been watching J. policy J. pow that it's hard to separate out the fed from everything else and you had Anthony Fauci at the White House saying this is going to get a lot worse so maybe traders are reacting to that the the equity market limit down I think is a we we have to look past that a little bit in terms of the fed what Jay Powell seemed to be saying today is we are taking these actions to make sure that the financial system continues to function not aiming at a level but making sure that you can continue to trade and there seems to have been a fear doubt they put this meeting together on Thursday he said that they were going to they moved up the meeting to Sunday on Thursday November how bad the markets were on Thursday there was a fear I think that the the markets could freeze up this could become a market crisis not just a health crisis and so the fed is trying to get out in front of that this Paul said there's no way to know when this is going to be over so the idea of the fed's stimulus helping build the economy back up there's no time for that right now it's keep the markets open and then he made it clear helping the average person is going to be up to the fiscal authorities well it I just think this is so important to drive home because J. Powell also made it clear the economy's going to slow down and the only way in the space so much that you can't contain the virus without slowing the economy to make sense to not be trying to stimulate growth right now but as he said will probably have very flat if not negative growth in the second quarter and then see where we are in the second half and the fed then can be ready to try to stimulate but I guess that's a two part question my first part is is there but the second part is what they have left to stimulate an ad but they've added the whole darn good you can buy yourself a nice convertible Kathleen when you're no longer afraid to go to the car dealership what you can afford a lot more but you got to want to buy it then that's the problem with the monetary policy right now is it's designed to stimulate demand it it's not that people don't have demanded that they don't want to go out and satisfy that demand and they're not able to in many cases because we're shutting down the places where they could spend money thus the supply side is where the fed that can't have been affected so they just have to kind of watch and hope that the fiscal authorities can help out the airlines and they can get money to the waiters and waitresses who are gonna be working because of bars and restaurants are also and of course I was that was very striking twice in this press conference Michael in the first part he talked about being about the treasury market the MBS market a short shown signs of being illiquid not functioning well and then towards the end but our own our colleague creek Taurus asked him what he watching the first thing he said does the treasury market return to normal very important clearly be concerned yes and we will be watching that over the next day they're been questions for a lot of bond analysts about whether the treasuries are reflecting actual prices or not and whether there has been sort of an air pocket for them and so this is gonna be interesting to see how bid ask spreads do and whether or not the sales particularly off the run are being completed the the kind of things that had frozen up in the last few days and it's it's their goal eventually we'll get to the stimulus part but right now let's just make sure financial markets continue with the is that a reflection of a non willing seller or just to a lack of buyers there have been it seems to have been a lack of buyers nobody quite knows everything that's going on but for whatever reason people haven't wanted to participate particularly with off the runs because the bid ask spreads are so white with an off the run and your values going to be different from your on the run treasury and those spreads have been extremely wide and so will be you don't want to take on a money losing trades plus the fact that ever since Dodd Frank banks have not wanted to warehouse a lot of assets because it affects their capital ratios so they don't have the the the the ability to do what they used to do so the fed is trying to step in here and and grease the wheels a little bit but if there was a all right the thinking in the background that the fed would ultimately one day step in and and take inventory from you right I mean wouldn't that be a positive if you thought in the back of your mind that there is at some point going to be Q. week well there that's what a lot of people were hoping and we heard we heard a lot of people on Wall Street asking for this over the last few days that is if the fed usually buys off the runs so in theory they will help open this market I'm a little bit because of their mouth as a buyer of last resort they're gonna pay the highest price so if if if they're going to do that then that may lift other people's prices and then they may be able to to to trade in a lot of people have been trying to dump our treasuries because they're the most easy liquid having to sell at a time when maybe you need to sell because you're getting a margin but sadly you know what really struck me to you guys is the dropping the reserve requirement ratio to zero because that was such a big deal to boost it we know they can take it down that's an emergency step pride and then put it back up a lot of these things you wonder how you know how the fed to navigate that if they've been talking about getting rid of that for years and this is the the required reserve ratio didn't matter anymore because everybody has somebody excess reserves and if they're going to run an excess reserve system then you're always going to have excess reserves and if they still report them separately but now I guess the wounded it been talk about let's just say how many reserves or this is going to matter whether we become access how long are you going to be around and I would like to continue this conversation is going to be here while I yeah yeah Bloomberg's international economics and policy correspondent Michael McKee here on daybreak Asia want to get you caught up on all market action at this hour let's get to Hong Kong and Brian Curtis well I think it speaks to what you guys were just talking about the market does seem to be functioning a little bit more rationally this morning what troubled everybody on Thursday was people sold stocks they sold treasuries they even sold gold everything went down because people need to dress cast today you see a little more normal activity gold is actually higher this morning it's up two point six percent and it'll be interesting to see how treasuries move once the Tokyo market opens up because that may give us a much better indication at the moment yes we are seeing risk off day in terms of risk assets being sold down we had done S. and P. E. minis and other U. S. futures move limit down so right around the five percent market so in the cash market CSX two hundred's down six point three percent New Zealand down three point two percent and we do see a money rushing into the yen so Dolly and now one of six fifteen and we've got the Bloomberg dollar spot index down six tenths of a percent so the dollar is definitely a selling off today and let's take another look at oil WTI crude thirty dollars and twenty six cents just a quick mention on a couple of other currencies the officer trainees currency right around seven to the dollar it's fluctuated a lot the kiwi dollar holding above sixty now we dropped to fifty nine cents for a while now it's sixty point eight eight U. S. cents guys back to you all right Brian thanks so much for getting us caught up on all of that now we want to get up calling upon the more virus news Beijing going to put anybody entering the city through major transport areas into a fourteen day Quarrington quarantine I should say Bloomberg said Baxter has a story you know and we thought you know China was peeking in getting better because we got out with no community transmitted coronavirus cases over the past week Bloomberg's Selina **** reports from Beijing that this to try and to stop reinfection told Beijing is taking a major movie will now be quarantining all travelers from overseas at designated locations for fourteen days these people have to pay the whole cost of their quarantines and this also includes Chinese citizens of means that even people who live in the city cannot return home to by far this is one of the most extreme measures to be undertaken by any major international how to stop the virus from coming into an area yes Leena says South Korea has also been told a drop in cases and asking US president trump participate in a video of a G. seven to explain how Korea has done it meanwhile Europe has become the epicenter now with proportionally far more cases in China at its peak and the minister for national development of Singapore says UK has stopped doing anything to stop the spread meanwhile travelers coming back to the U. S. from Europe or staying longer checkout lines at airports was up to six hours by the way at o'hare New York governor Andrew Cuomo is asking some businesses to voluntarily closed down I'm asking them today voluntarily closed down voluntarily closed down your bar your restaurant your gymnasium yeah he says if that doesn't work I'll have to make it mandatory New York says it will close schools in Australia prime minister Scott Morrison says schools are not going to be closed at this point meanwhile the head of the infectious disease control Dr Anthony Fauci says the U. S. needs social separation or face the possibility of having struggles for hospital beds and ventilators band of vice president Mike pence's assuring people the White House says assurances of.
"bloomberg interactive brokers" Discussed on Bloomberg Radio New York
"In the Bloomberg interactive brokers studio in Hong Kong for the selling in Asia today particularly in Tokyo making up for being on holiday yesterday down three point seven percent here that's a fall of eight hundred sixty five points very similar to what we saw on Wall Street with Dow Jones industrial average down more than a thousand points off ten thirty one that's a drop of three point six percent and the nasdaq was down the most in the New York down three point seven one percent the main concern here is the corona virus spreading now not only throughout Asia but further into the Middle East and in Europe more than two hundred cases in Italy that sparks a lot of concern and more than eight hundred cases in South Korea the havens getting some demand this morning including treasuries gold and also the end gold is trading up felt like we were yesterday here in Asia so in the past twenty four hours not a lot of movement up but now sixteen hundred fifty four dollars a Troy ounce Dalian one hundred ten point nine three the euro at one point zero eight five three against the dollar and the Aussie dollar sixty six point one six U. S. cents a couple other quick note to mention Fujifilm soaring almost nine percent Japan will use its drug to treat the coronavirus some other companies reporting United AIR abandons its twenty twenty profit goal because of the outbreak MasterCard cuts its revenue forecast for the same reason in steel rebar stockpiles hitting records in China as the virus saps demand we'll get you another update in about fifteen minutes there's one slight positive note S. and P. E. minis are actually trading up now six tenths of one percent that's a jump of eighteen points all right let's get to the news just ninety minutes past our doctors in San Francisco all right thank you Brian yeah the nations you're talking about in the Middle East as a the virus continues to put a footprint wiring right around the globe are a rock Kuwait Bahrain and Afghanistan U. S. defense secretary mark esper says he's hopeful for a U. S. South Korea troop pack by March thirtieth we're getting reports out of Jakarta that parts of the capital and its suburbs are flooded after two tropical cyclones off the nation's coast triggered heavy rainfall overnight inundating houses in low lying areas and causing a power outage a major power outage Harvey Weinstein guilty of rape and sexual assault but acquitted of more serious charges of predatory sexual assault sentencing is March eleventh red carpet welcome in India for U. S. president Donald Trump yesterday today a visit to the Taj Mahal Malaysia's king is accepted the prime minister Ahmad here's a resignation and the U. S. Supreme Court has agreed to hear religious rights case over whether same sex couples should be able to be foster parents and the U. S. is mulling the idea of expelling of many of China's reporters after China kicked out three Wall Street journal reporters in San Francisco I'm at Baxter Kathleen do you thank you so very much we want to get out right to a C. E. O. who is joining us today from Hong Kong Richard Lancaster CEO executive director at CLP holdings is the larger of Hong Kong's to electricity suppliers with businesses in a number of Asian markets and Australia so Richard welcome the show first of all thank you so you reported to us your of full year net income today and it really fell short of analysts on average looking for something like just over eleven billion Hong Kong dollars coming in at four point six six billion what happened that includes a non cash impairment so average earnings were down from two thousand eighteen which which was a particularly good year for us some of this well is anticipated to we have a a new regulatory contract which took effect in Hong Kong at the end of two thousand eighteen so this was the fullest first full year of hello committed return under that contract that was fully expected what was less than expected was weaker performance in our Australian subsidiary arrow straight in business does go through ups and downs and two thousand and eighteen was a good year but two thousand nineteen was less of a good year I want to ask in a moment about the conversion that is under way for many of your power generation going to natural gas away from from coal or anything else what kind of capacity utilization numbers are we looking at now for your company in light of what we're seeing with respect to the corona virus how is your business being impacted we festival one Rachel that we we provide a healthy and safe workplace full of floral about stuff and where a customer facing business well we also want to make sure that our customers well protected as well so we've taken sensible precautions across a business run throughout Asia we also run an essential service so we wanna make sure that our operations are running reliably and that that that the like to staying on everywhere it's as far as the economic impact goes it's a little too early to to see that here in Hong Kong we seen some small changes in in demand but it's it's very early days yet to see the impact more widely in China we have a diversified portfolio across the country we there's a obviously a lot of attention being paid in who they province but we we don't have any operations there but it's still early days to see what what impact they may be and own on electricity consumption so in terms of generation though if you move to kind of natural gas or LNG how is that going to be sourced for Hong Kong we are developing and all fuel LNG import terminal to supplement our supplies of natural gas Hong Kong at the moment gets its gas by pipeline some from off shore gas fields and some coming actually from Central Asia so LNG import terminal will give us a third supplied gas which will be adequate and Anil symbols and that will help us make the transition from coal to to initially natural gas we also have nuclear power in Hong Kong which is common free and so our energy mix in Hong Kong will be a balance between natural gas and nuclear power so in in other parts of it with portfolio in India and China we are developing renewable energy that will be the the replacement for Alvarez you mention we just mostly just a few seconds here how does it look is that business stabilizing what's your power business gonna do you can just give us a few seconds of.
"bloomberg interactive brokers" Discussed on Bloomberg Radio New York
"In the Bloomberg interactive brokers studio in Hong Kong well China's corona virus outbreak is spreading further in countries outside of Asia and outside of China particular concerns here about South Korea and it's raising further concerns globally of a pandemic in South Korea one hundred sixty one more cases today including two more deaths Samsung electronics LG electronics and other companies in South Korea taking some precautions now after the infection of a Samsung employee at a local production facility we mentioned the one is at a six month low this morning and it's looking at some of the futures in the United States Dow Jones in minis down three hundred eighty one points nasdaq one hundred E. minis off a hundred and seventy two points at ninety two eighty four and S. and P. five hundred E. minis down about one point four percent here in terms of the cash markets in the Asia Pacific cost be the hardest hit with losses of three point two percent banking index down one point six percent China stocks off about one percent and the ASX two hundred trading down two point three percent gold is being well bid this morning it's been trading up around sixteen hundred sixty seven dollars an ounce that's about a one percent gain oil getting hit hard down two point six percent for WTI fifty two dollars and two cents no trading in U. S. treasuries today because the Japan market is closed and so no trading Japanese equities either the last trades on the ten year had to yield one point four seven percent Dalian one eleven fifty one not too much movement there weakness in the Chinese currency the CNA training seven oh four thirty seven against the US dollar right that's a look at markets let's get over to.
Trump says U.S.-China trade deal will be signed on January 15
"Trump I will sign a phase one trying at China trade deal January fifteenth so there you have it president trump phase one China trade deal will be signed at the White House that is per president trump tweet so we have a little bit of clarity on the trade phase one deal gonna be signed on January fifteenth at the White House take a look at futures not much movement there S. and P. down six downtown sixty one Mike Regan Bloomberg stocks reporter joining us in a Bloomberg interactive brokers studio he's a warm body is gonna try to make the success where I'm kind of might want to be I mean that I know of a phenomenal year we're just gonna kind of close out today's trading right yeah you know what's it saying like you just read out that headline about president trump get ready to sign the trade deal January fifteenth not even a quiver in futures side just staying exactly where they are so take that for what it means you know and actually another to another hello I come across the Bloomberg from a trump says he will go to Beijing later for take face to talks were
An interview with Huawei USA's chief security officer Andy Purdy
"With any party is chief security officer while a technologies USA he is joining us in our Bloomberg interactive brokers studio in New York of course while a very familiar to her audience I feel like amid the US China trade tensions that we cannot forget the commerce department blacklisted while way back in the spring to stop American businesses from selling components to the company the White House for a while is accused of the company being a threat to America's national security let's kind of roll it all together any good to have you here with us because I feel like the more conversations we have on on these types of issues the smarter we all gatt the recent bands that have come out from the administration what has that done to you guys as a company and in terms of interacting with American businesses well there's certainly been an impact on while a we've got nearly three hundred American companies that want to sell to us the supply up to twenty five or thirty percent of all of our global components so we've had to move to what they call plan be something that IBM and recommended we start we did start sometime ago so we have had to find alternatives to those and right now we're able to ship our five G. technology with no American components so we're not entirely sure the impact on us but we do know that over forty thousand American jobs hang in the balance for no good reason so we hope that these issues can be put aside this effort to attend an effort to hurt China wear them hurting America we're cutting off our nose to spite our face and what sort of progress if any are you making in Washington to get that message across or they'd listening or are you sort of shouting into the wilderness here we're not making any progress I mean the fact is and I think the existence of the US trade talks the geo political situation although everybody says if we're not connected to it of the government won't even talk to us they won't talk to us about the kinds of things that allow Nokia Erickson do business in United States despite their deep ties to China so we hope that if that if there is some kind of a trade deal it may be that the government will talk to us about these negative on Telefonica the German company just came out the side to do a five year contract with us despite the pressure of the U. S. on Germany so we can address real cyber security risk and we'd love to collaborate with the US government what's the future though I do think because we have a ton of conversation the magazine just this week has a story about Chinese Americans who are be called especially those who work on government projects and have high security clearances where they're under heightened scrutiny and sometimes wrongly so and so I do wonder like what is the future in the in a world we talk about a bifurcation where it's kind of the U. S. versus China what does that mean for a company like you guys in the Verizon CEO recently said we want to avoid a five G. Cold War brightness came out and said it did it it just doesn't make any sense we see very important things happening in Europe for example in Germany with a telephonic announcement but the government is working hard the European Union is working hard to try to come with objective and transparent basis for knowing which products are worthy of trust because the bad guys out there have great skills we have to use very good technologies to address the rest that that comes through all products so any of I want to ask you because your background you worked in the White House mean you understand the other side of the table in many ways how surprised were you that all this went down essentially knowing how the sausage is made on the other side well there's been some longstanding concerns you know and although the terrorists help obscure these fundamental agreement among the Republicans and Democrats the concern about theft of intellectual property the concerns about forced technology transfer the threat that the US sees from China as China has grown economically and militarily these are things that the the cut across the board and so and legitimate concerns well let's put it this way our government the American government has to make sure that we address the rest to this country we've got to learn lessons like from the seventy five years ago DJ in cyberspace we have to be ready much more ready with we were when the Germans and the **** swarmed over Europe we have to be ready to address real rest and we think it can be done that it has to be done with standards and conformance programs for the operators as well as testing independent testing for the equipment we love the participate in those conversations but it is interesting too though that if there is a division of technology division and the world going forward we talk about a lot about five G. maybe there's going to be two standards are you know you do wonder what what what does that mean for global security concerns well it is a life what it means is a real threat to competition and and competition is critically important it's important for security it's important for resilience it's important for innovation we need to make sure that we have competition when you look at the equipment vendors there is not enough competition I hope no key is strong enough to to survive frankly hope that they're strong enough to do the are you D. that they need to with your expertise in understanding where you are currently and then as Jason mentioned you know having spent some time you know along the beltway and I just do wonder so what what is the answer because we do know in terms of our relationship with the Chinese that there has been problems with intellectual property and there has been a lot of technology transfer or if you're starting up a business you've got to do it along with a Chinese company you know it's very clear that the Chinese you know have a mission to be very dominant and I don't have a problem with that because I feel like that's capitalism a play but because of the past how do we know who what we're dealing with as as a country the United States well I'm glad I had the option to participate in discussions the United Nations here in New York last week with governments and private companies it's a combination of we need enormous for government we need benchmarks that we could hold governments accountable we could have mechanisms to create incentives and consequences of government if governments violate the rules but also unique companies you need independent standards you need independent testing so we can address the rest is the combination the shared responsibility that's gonna help us just thirty seconds what would be a great incentive for the two I needs to really make sure that turns the government conformity that it happens as quickly well I mean I think the global community holding them in other countries accountable the World Trade Organization to standards on the theft of intellectual property on forced technology transfer we have to have the visibility and then make clear when when a country whoever it is is violating those norms but it's interesting in a week where we know the WTO right wrist is weekend yeah to say the least any party we hope you'll come back we were only able to scratch the surface of a really important topic chief security officer at while way technologies here with us in our Bloomberg interactive brokers
"bloomberg interactive brokers" Discussed on Bloomberg Radio New York
"From the Bloomberg interactive brokers studio this is Bloomberg best managing director of the IMF crystalline of gore gave us says the focus will be on trade peace not war at the I MF World Bank autumn meetings next week and we continue the conversation here between gore gave us and Bloomberg's Tom Kean I look at this issue of trade now in from where I sit in the in the privileged position I seven of all this news flow coming in it is tips for tat not only with the obvious statement to mention two nations the United States of America and and China but as you mentioned Switzerland it written down owns across everyone right now this trade war how will you define a trade war at these meetings and what's your to do list to remove us from this **** for tat so we're going to get in the meetings and we are going to be saying we are going to be talking about trade he's not about trade war what I like to I heard that phrase before who invented that three six okay and we would because what the soul is so just like the IMF who says the IMF is groovy one three ER he's we are being weird being instituted a tool held the world has had more stability and what this is all very obvious is that it is the indirect impact that reading by loss of confidence that's right where I wanted to go loss of productivity market facts because firms have to pay more for credits because they're trading with a partner that may be in worse shape so the theme the rate is what we need to zero on because we know that confidence one is on the mind please hard to read right well you mentioned confidence that's right or to go David Lifton in your latest September magazine mentions governance governance is about leadership what is your leadership approach that will begin to instill the confidence necessary to get towards your piece of trade well the what we do is to show us clearly as possible that everybody's a loser in a trade war therefore everybody would be a winner in three piece and make clear that that's Los may be higher some countries and low on others but everybody is impacted and then concentrate on the rational behavior now I must admit that we as an institution are in the position if I am to use that I see the Bulgarian ambassador I'm going to use a Bulgarian proverb we had any positions that we can take a horse to water by showing the any of the species but the bin war we cannot make the horse drink that has to go into national self interest and decision making that being also informed by the views of the public so the brawl this information is and this is why we are grateful to you all for allowing this to show we are already shooting ourselves in the foot the more we can show it to ordinary citizens we hold the more they would be that self interest the thing called Kamal peace is better than war to the fiscal book and Ellen honor to speak with our doctor just earlier this morning what is so important within the fiscal imports is how we spend the money and I would respectfully suggest that the United States just as one nation as many other nations like this that has a reticence of debt and deficit even with our trillion dollar deficit is reported is we're not quite sure how the money is going to get spent if we find our fiscal space what is the best use of that growing debt and deficit look I I am I'm very his on this topic I think we need to recognize the speed of change and that's our duty in public spending keys to prepare nations to be better position in that fast changing world and that means investing key in the in the digital infrastructure infrastructure overall but specially digital infrastructure investment in human capital education code social protection making sure that you actually have the skills of tomorrow not yesterday and investing in research and development designing vessels that dollar for every nation on this planet today hugely important I leave up invest invest thinking people US one investment that that because being somewhat in the north traditionally there would be this know also that you invest yourself because you'll benefit from that your salary that goes up yeah I think it is becoming people are becoming such an incredible adjustments and competitiveness factor that these let it is more than ever a public good for the country so you want to be rich tomorrow invest in your people today what form of capitalism then you see is a more modern capitalism if we are locking in every man for himself every woman for themselves when you're looking at a broad public good that's the edge of the modern debate isn't it so how do we move forward to a gear gave capitalism you know what I like about capitalism is competition and right that absolutely must stay competition makes a soul do better right what I don't like is when we dangle to the extreme and say every man every woman on their on their own so finding the right space when we look at the interests of the collective and that is the platform on which we build our policies and yet we demand from the individual so perhaps this is the form of your give a capitalism these up interest of the collective the man's responsibility and accountability of the into the individual working that in bed harmony I would never want to go back to the days of old we are all equal not only because we were all equal but some were more he could say I don't want to go there because when you pull the plug of competition need to see that they saw her but I also don't want to be in a world where we don't care about spend eighty four all and we don't that confusion that makes the site the vibrant in performing your culture are merging markets let us talk about the impoverished right now and how we we we forget that in our data the race of develop excellence about those truly struggling identify here view on how we approach those most challenged thank you for asking this question what we need to recognize is that a combination of four factors and they come in different different weights conflicts natural disasters very high population growth unsustainably high population growth and bad governance we have a number of countries and people in this country's date struggle virtually to survive and we told them our full commitment and attention at the front there is no full recognition that frog Joe conflict affected states date alt to be not only front and center in the work of the fun but we have to have taylormade policies for them different from what we do in middle income countries and even in stable lowing what is it transaction between what the World Bank will do for those troubled nations challenge nations and what you will do with the International Monetary Fund my my my my determination is that the bank and the fund another's work.
"bloomberg interactive brokers" Discussed on Bloomberg Radio New York
"The Bloomberg interactive brokers studios in New York in an hour and a half trading will begin in Tokyo Sydney and soul Chicago Nikkei futures right now imply a move of not quite three hundred points to the upside of everything hold we've got a much weaker yen here at one oh six sixty six big all risk off day in or risk on I should say in the U. S. will be talking more about this and the dialing lower of a tension between the US and China on the trade front that story is coming up right now let's get you caught up on this hour's top business stories the ongoing protests in Hong Kong have prompted China is the biggest banks to slash its view of Cathay Pacific I CBC has lowered its rating to strong sell as a follow from the widening and rest damages the airlines brand the big now has a stock price target of six Hong Kong dollars for Cathay about a third less than where it closed on Monday and at a level last seen in two thousand one we go next to Facebook the company has been apparently paying hundreds of outside contractors to strip transcribed clips of audio from Facebook users now we spoke earlier with Bloomberg Serra fryer she says this is another failure for Facebook when it comes to user data what the contractors are doing is they were trying to figure out if those transcriptions from the artificial intelligence were accurate now face a posthumous work they say last week because they saw scrutiny of apple and Google's audio collecting practices so they don't want to get into the hot water so Facebook has confirmed that it had been transcribing user audio but the company said it will no longer do so users affected had chosen the option in Facebook's messenger app a long awaited deal new CBS has agreed to merge with Viacom in an eleven point seven billion dollar transaction the all stock deal unites the most watched U. S. broadcast network with the parent of Paramount Pictures and cable channels such as MTV and Nickelodeon that followed a marathon negotiation sessions this week as the two sides hashed out a price for the long awaited merger snap has unveiled the third version of its video recording sunglasses were talking about the spectacles three they let users record with two cameras instead of one they're also more than twice as expensive as the previous model price tag here three hundred eighty per pair now snap hasn't had much success with glasses so far it overestimated demand and had to write down nearly forty million dollars in inventory back in twenty seventeen Ali Baba's rival JD dot com reported a surprise profit and better than expected revenue the E. commerce company road make your promotions and recovery in consumer spending Judy is try to differentiate itself from Ali Baba by investing heavily in warehouses and logistics network well as I mentioned earlier we had a rally in US equities that occurred after the trump administration kind of de escalated the trade war with China Blueworks Bob moon has more American equities set a new high relative to the global peers after the trump administration announced it would delay until mid December it's ten percent tariff on some Chinese products the S. and P. five hundred index Israeli lend credence to the argument that had this round of levees got into full effect on September first it would have been worse news for the US and the rest of the world at large but with some of the burden lifted stocks soared the S. and P. five hundred added forty three points one and a half percent the Dow Jones industrial average rose three hundred eighty two point one and a half percent the nasdaq climbed one hundred fifty two points nearly two percent some investors remain cautious though about the prospects for a trade truce noting that president trump himself said he was simply trying to avoid disrupting consumer sales for the holiday shopping season I'm Bob moon Bloomberg daybreak Asia so before we had the news on trade today we did have the CPI data for the U. S. an unexpectedly hot reading particularly where core CP I was concerned a gain the end July three tenths of one percent that's a month on month it kind of weakens the case for the fed being aggressive enough cutting interest rates now in terms of the bond market today the risk on mood we had pushed rates a little bit higher the ten year actually picked up about five basis points we finished New York trading around one seven zero in yield the dollar gained a little bit of ground we have the Bloomberg dollar spot index higher by two tenths of one percent importantly for the Asian session we've got a weaker yen here at one oh six sixty eight so now Chicago Nikkei futures the active contract at twenty thousand seven forty five that saw just about three hundred points above where we were in the cash market yesterday in Tokyo now during the regular session we had a rally in crude oil that was largely reflective of the risk on moody an asset markets globally but then after the close here in New York the American petroleum institute reported that crew of crude supplies in the U. S. actually rose by three point seven million barrels last week there was a little unexpected so right now in the electronic session we're down about eight tenths of one percent on active WTI trading at fifty six sixty five I'm Doug prisoner at the Bloomberg interactive brokers studio in New York Selena to you in Beijing well Hong Kong International Airport is back to almost normal operations this morning at Baxter has the global news in the Bloomberg nine.
"bloomberg interactive brokers" Discussed on Bloomberg Radio New York
"The Bloomberg interactive brokers studio this is Bloomberg best investors are counting down to the fed's rate decision at the end of the month with markets pricing in a twenty five basis points cuts that's right ad but Omar slim Asia fixed income portfolio manager at pine bridge investment I believe the federal reserve can reduce interest rates by fifty basis points in this month's policy meeting to counter an economic slowdown a slim spoke June with Bloomberg's Julie at Sally and upon man about fed policy and his outlook for yields to use chairman Powell's words an ounce of prevention could mean the fifty basis points because I think if you look at the fed models twenty five basis points is reading the noise and it does not really that consequences so the fed is going for what they're calling an insurance card it really needs to be solved the system and sold economic activity I think fifty basis points would probably do that given that twenty five basis points is already factored in that's obviously going to have a lot of dramatic impact on these deals that we already saw a fully of go to China my terminal as well showing that we're at the bit about a quarter crisis if you will with negative yielding debt now comprising about twenty three percent of investment grade Tasha we're talking about the likelihood that US yields probably not likely to go into negative territory but reading into the fact that we are seeing so much negative debt I think this is a reflection of the fact that one two policy globally has really turned decisively more accommodative and the trend that we have seen in two thousand eighteen where the central banks were either being more hawkish or expected to be more focused and we're seeing tied them onto policy has been decisively rivers so I think this trend will continue I think that you will continue to be well anchored US treasuries bias will continue to be for real yields and I think this is just a nice reflection of what one two policies doing contrarian call here for a fifty fifty basis point cut from the fed this one would send the wrong message for market so perhaps you know we're seeing you I set records right now it comes to equities he continues C. vase looking over priced at the moment if we see that fifty basis points when the markets are warring on what is going on with the world economy and actually spook investors I don't think so I think that narrative existed about a few weeks ago but I think the fed has clearly communicate that that what they're doing is essentially a Senshi preemptive car or precaution we caught and I think this is to counter and the slow down that we're starting to see in the U. S. even though it's not that pronounced and also the global slow down so I think the point is that if they really want to have a precaution we pre emptive rate cut they better start relatively big as opposed to just doing twenty five basis points now and the market will expect another twenty five basis points in September and so on and so forth so there's really no point in my view to drip feed this that these these because of the market is expecting seventy five basis points this year of course the risk is that the Clintons might as well go for twenty five basis points but what I'm saying is that the chance of a fifty basis point is more real than the market is pricing and at this point do you think a twenty five basis for fifty basis point cut it is it enough for the fed to to reverse inverted you'll you'll curse I mean they're quite flat when they're not in very good except the certain buckets of the curve so I think what you're going to see is a shift lower as opposed to a more kind of distortions in terms of the U. S. treasury curve to what extent does you know dovish fed which you obviously think it's going to be even more deadly somewhere expecting support and some of the one's own telephones particularly at AM it does to a certain extent because I think most of the central banks in the region they're either going to be as nervous as the federal reserve or they're going to try to a dog the federal reserve so for instance you've seen last year in number of central banks in the region including like a visa for instance that were clearly reacting to the fact heights when they hired by more like one hundred seventy five base for so we're going to see a reversal of that so I think he and there is going to benefit to a certain extent from it but I remain quite new ones in terms of at least some of the E. M. because the manufacturing slow down and the trade frictions or trade wars will have and are having an impact in terms of the economic data and their own full displays or the starting to be on full display with for instance the Singapore economic data a couple of days ago yes being quite extraordinary to see how much the impact has been felt around Asia want to specifically go to India because they may not have been as hit as hard with the tribal but they have been hit with that line problems with whether for example as well you'll sign the abi I could be quite aggressive as well you've also got a fifty basis point cut prediction from them yeah somebody I've I could do it in a number of steps is that of going out one one goal I think as you rightly say India is facing side soul if you sing Craddick stores and I think one area that we're watching a monsoon very closely is what's happening in the Indian finance inspectors visited a non bank financials I think these needs to be the decisively does but in terms of the R. V. I. and so the other central banks I think really is one of the reasons why they're going to cut this because they can so they don't really have a lot of increasing pressure so the the mentality of the central banks in the region has shifted from let's cut if we can if we don't have a problem with the current account deficit dollar major and if there's nothing fishy pressures the kind of natural bias for them would be to be.
"bloomberg interactive brokers" Discussed on Bloomberg Radio New York
"The Bloomberg interactive brokers studio. This is Bloomberg best President Trump this week, signed an executive order that he said, would bring down the cost of healthcare across the country, and Bloomberg's David west spoke with the secretary of health and human services Alex as our to talk us through the president's order. Well, I really do believe that we're going to look back on this executive order, and these actions around bringing transparency on price and quality information is one of the major, fundamental shifts in American healthcare reform that we will have ever experienced you know, for folks like us who understand markets and customers, you can't have a market without price and quality information. And so what the president is doing is ordering us to have hospitals. Disclose information based on their negotiated rates that they've got in consumer-friendly machine readable format. He's making us put out requirements so that insurance companies give you the patient information on the list price, the negotiated price. And your expected out of pocket get this before you go to the doctor, and before you go to the hospital scene. You can make an informed choice. So that sounds pretty good. As you say that people deal with markets, we believe in markets, based on transparent information. But as a practical matter, these things can get pretty complicated. How are we going to make sure the information is provided in a way that people could actually understand it because you're not both? You can put it out in ways. They're pretty confusing. That's right. David, and that, that's why you'll notice I used to words in their machine readable. We're going to be putting out whether it's ensuring the hospital doubt of the insurance company data or the broader claims out of one of that one other aspect that is going to be just revolutionary. But what the president's required here is that we the VA the defense department Labor Department put out claims data from all of these healthcare programs that in a way that's D identified and protects patient information privacy and security, but make that available all. So many entities out. There are so much better at analyzing big data coming up with trends, identifying efficiencies, but also making it consumer accessible. We in the government are not expert at that. But there are a lot of companies out there that are who could figure this out for consumers if we just make the data available. So one of the earlier initiatives, you had all.
Slack stock surges at debut, values company at more than $25 billion
"Well slack technologies, of course, making its debut as a publicly held company, and that was at the new York Stock Exchange stock. We heard from Charlie up about forty eight percent here in its first day of trading or Emily Chang, on Bloomberg television, cut up with the CEO of slack, Stewart Butterfield. And they talked about the business, bringing in more cash than me, put out on a non going basis is a priority because it allows us to control their own destiny. The ideal for us, though is that we continually find new ways the new opportunities to invest to further the business that we don't need a lot of free cash flow. But just a little bit. All right. Well investors seem pretty excited about what they heard from slack. Let's understand what they're seeing in this business a little bit about how they got to market, as they say, Mendy, sing senior tech industry analysts for Bloomberg intelligence. He's back in our Bloomberg interactive brokers studio. Mandy, you're our expert on these things. What did we see today once slack was really out in the public a one thing is fairly obvious that there is a lot of investor in two zero around, you know, cloud subscription businesses, especially on that deprives side, because the revenue stream is so predictable these in case oh slack. It's growing top line at over fifty percent. So there is demand for P. I think the concern for single product companies, you know, on the cloud is how sustainable that top line growth is. And you know once you hit a billion dollars. I think you're going to see growth taper down. So, but investors aren't focus. Passing on
"bloomberg interactive brokers" Discussed on Bloomberg Radio New York
"The Bloomberg interactive brokers studio. I'm Amy Morris in it is every candidate for him or herself. The gloves have come off among Democrats as vying. They are vying for a shot at the White House, and they're taking aim at the front runner. Former vice president, Joe Biden, Vermont Senator Bernie Sanders delivered the strongest rebuke at the California Democratic convention. We will not defeat Donald Trump, unless we bring excitement and energy into the campaign. You know, Biden wasn't even there. He skipped that gathering to attend a dinner in Columbus, Ohio, held by the human rights campaign, which is the largest G LGBTQ Q advocacy advocacy group, pardon me in the US. We're going to see where all of this is going with Bloomberg news. National political reporter Tyler pager. He's on a Bloomberg ninety nine one stadia right here in Washington DC. Okay. Tyler. So much for unity in the Democratic Party. Right. It looks as though. Everybody is really out for themselves. And they really start criticizing each other until quite recently. This has been a recent development here this weekend in California. It's the first gathering of, of a lot of the candidates ahead of the first date. And while they didn't name Joe Biden, and it was clear. He was on their minds really attacking his candidacy in his message as they try to make some gains in the polls where he he still holds quite a lead. Now. Is it telling to you, or to other analysts that Biden did not go to that particular gathering was that a logistical mistaker with that strategy? I think it was strategy. I think his message is a little bit more centrist than some of the more progressive Democrats, like Elizabeth Warren, Bernie Sanders, who really audience in California, and as some, some democratic strategist says he has nearly one hundred percent name recognition. So there was little to gain there and probably a lot more to lose. We saw. Some more centrist candidates. Like John Hickenlooper in John Delaney. Get booed for criticizing socialism and programs like Medicare for all. And so someone like Biden, run ran the risk of getting booed, and that would play a lot more than him. Just keeping the convention, and somebody like Hickenlooper is not necessarily what you would call a Regmi Republican. I mean he is not exactly. He's, he's a mildly moderate democrat, but he's not far left. Exactly. And that was a strategic play on his part. He's looking to appeal to some more moderate Democrats, and by getting booed, for denouncing socialism, that, that's definitely a strategic way to get his name out there and drive the new cycle. Little bit with a field as large as we're seeing Twenty-three candidates. It's hard to get attention. And so some of these candidates are taking unconventional strategies to kind of really break out of the field if they even can really wanted to ask you about that the convention -ality versus the unconventionality. I mean how different is this from any? Other run out to previous democratic primaries. Because everybody's always trying to knock off the, the lead dog. Right. So how is this different? Exactly, it seems like there's some races within the larger race of there's, there's a clear front runner in Joe Biden, and some people just telling him in the polls like Bernie Sanders, Elizabeth Warren come la-, Harris mpg age, and they're seemingly stepping up their tax on fighting. But then there's all these people behind him that are just shocking to try to even get on the debate stage and meet the DNC's requirements for that. So there's a lot of smaller races and different emphasis that the candidates are putting on as they just try to qualify for the first debate for some of the lower tier candidates. But the other ones that Joe Biden is, is skating ahead right now in the polls in and really need really see need to try to knock him off that pedestal are you finding when you talk about these smaller races that there is one or two really big issue. That's dividing them. And here's what I mean. When? You talk about impeachment. It's you either are for it or against it. There's no inbetween. There's that that is a divisive issue within the Democratic Party. And whether you're talking about proceedings or an impeachment inquiry, and I'm wondering if you're seeing other issues crop up that are that divisive, particularly as we approach twenty twenty. Yeah. I think the, the biggest one of the biggest divides right now that we're seeing is just about the protests to policy, so we're seeing people like Elizabeth Warren and Bernie Sanders propose really big structural changes that some are labeling as, as a form of socialism, and then on the other side, we're seeing some people say that we need to take a more moderate approach to change someone. Like Joe Biden has has said let's work with Republicans. Let's try to find coming ground. He said in New Hampshire and was criticized for saying, if Trump is elected out of office, Republicans will have a piffle and come back to the table and work with them, a-, crafts. And then there's other people on the other side saying, no, we can't work with. Because they're not willing to go as far as we think we need to. So, so there's some jockeying over there in terms of the spectrum of progressive change that some of these candidates are getting four and there is that argument. Let me ask you about this, too, that Democrats need a bigger tent, which not, not those are not words that you would normally say that the Democrats need a bigger tent. But that is what part of their downfall wasn't twenty sixteen. Right. And so I think they're trying to figure out exactly what that looks like in twenty twenty and I think that'll that'll play out as we see who, who is the eventual nominee. There are there are some people that say the Democrats need to just turn out the vote, a little bit more, particularly in communities that are not. Do not traditionally always go to the polls, we saw that with better work in Texas getting young people, and people of color, and Latino communities to really show out and show up where some people are saying that the Democrats to win back some of the Republican or independent voters who voted for Trump? And so it's, it's two different charges, and I think ultimately, we'll see who's the eventual nominee how that plays out in terms of which one is more successful. Right. You don't have a crystal ball. You can't tell how that's gonna play. But I love how you anticipate my questions because I wanted to ask you about who the candidates are talking to who is the audience when you have somebody like Joe Biden, you know, standing up on the on the platform, talking about Medicare for all maybe this way. But then aligning himself with the new green deal completely backing that up, so who is the audience for this Democratic Party? That's a really good question. I think they're trying to trying to figure that out as, as well as the I mean, we're still many months away from the first votes being. Cast in Iowa. And, and someone like Joe Biden, I think, is particularly interesting because he's not actually on the trail all that much. A lot of these candidates, yet Biden is a little bit. He's not he's not campaigning, as heavily as some of these other candidates. And part of that is because he has said earlier a lot of name recognition and a larger history and record and he's, he's prone to gaffes s we've seen in his past presidential runs in, so I think there's, there's a hesitancy to put him out on the trail as much as some of these other candidates that are really trying to gain their name recognition. And so, in terms of who they're speaking to, I think, I think it depends on where they are. And I it's actually been interesting. I wrote a story this week about trade and how the Democrats are criticizing Trump's lack of a strategy on trade, but they're not really proposing their own policy proposals. Instead, they're just attacking Trump. And so, I think what that shows is, is they're hesitant about appealing book, Iowa voters, rural voters who really wanna. See. Free-trade and also the rest of voters who are more concerned about the impacts of globalization. So I think the message is gonna shift as we see them campaign in different states, both for the primary, and the general election, where different states men are a lot more. Right. Right. They have to know their audience. Exactly. Okay. So let's go back to something, you said, we've got about a half a minute to go here. But it sounds almost as the as, if that riff, we were talking about in the Democratic Party, where you have the far left progressives versus the more moderate Democrats, that there may be some platforms changing of the democratic platform some planks in the platform may be removed, others, maybe hammered in yet, I think it's really going to be depending on who the nominee is if we see someone like Elizabeth Warren or Bernie Sanders win this win this race. The party is going to be expected to move a lot more than someone like Joe Biden, and I think that we saw some of that conflict in two thousand sixteen when there was a big debate at the democratic convention over the party platform. And what type of changes they want to see something like super delegates, which Bernie Sanders was really critical. I think it'll be interesting to see how that changes as we have such a field as big as it is. All right. Tyler patriot national political reporter for Bloomberg news. Thank you for taking the time with us. Thanks so much coming up on Bloomberg politics, policy, power, and law. We'll talk to a Republican strategist, and former campaign manager for Marco Rubio getting his take on the relationship between Senate Republicans and the president. This is Bloomberg this..
"bloomberg interactive brokers" Discussed on Bloomberg Radio New York
"Bloomberg interactive brokers studios. This is Bloomberg daybreak. We're joined this morning by David Rosenberg chief economist at Gluskin Sheff as we continue to watch this flight to safety this morning. David ten year treasury yields continuing to fall to learn lowest levels in about nineteen months. Does the ten year treasury yield have further to fall? Well, I think if you just look at the chart you can see clearly we broke. Twenty four hours to some major congestion from what the reins we had in the summer two thousand seventeen and, you know, I'm not a technical analyst, but you don't have to be what to see that there is nothing but dead air from where we are now to, to percents. And I'm not even convinced that's going to be the bottom. For a while that you don't even have to talk about of -cation just take a look at where the Kate tenure guilt is trading below one percent now known a point nine and what separates the tenure yield from going. The UK is, is just by the fact that there overnight rate, their cost of overnight funds just point five percent and the only central Bank in the world did raise rates nine times a cycle was the fed where we're two and a quarter two and a half percent. Won the fad finally capitulated. And let's face it, we've seen this before the curve of ultimately reached deepened. But the whole curve was we'll shift down. And I need the convergence will be anew Kate gilts and everybody just folks on the stock market. They have no clue. How much money you can make in the bond market deals. Go down. Are you're saying when the fed capitulates when do you see the fed capitulating? I think that, you know, look, trying to time the exact meeting, nobody can do that. But I think that I would say that by late summer, we will see the fed starting to cut interest rates. So I'd say by Labor Day or there after no later than that. We've heard from some observers saying that they could even see the fed cutting rates fifty basis points as opposed to twenty five. I mean, could you see a fed rate cut that significant that soon? Well, it's not as if the fed hasn't done that before in, in the previous two cycles. I think that, you know, the, the day that would have to really warranted. I actually think that the data will warrant it will the fed go fifty basis points. To launch things off. You know that's a tough call. I mean things that have to get really ugly for that to happen. Because one thing we know about the fat, you know, and with all deference to Jay Powell, who's accredit sky, and not in the communist and the reality is at the fed remains and always has been an extremely incremental institution. That is more likely to follow the markets to leave the markets of at some point. Fifty two meeting dancers. Yes. First meeting, the answer is that who knows. I don't think that's where the relevant what's relevant is what's priced into the curve, and the curve does not have the sad priced. Do what I think they're going to do, which is to go back to zero bound in the next say, twelve months. So. Perspective over fifty you don't need a meeting too key. Here is at does not enough easing price into the market right now. We're going to have a key piece of data that the fed watches coming out this Friday with the core PC what's your expectation heading in? Well, I think that, you know, this is where in my writings. I've been saying that I was, I was questioning whether the fed is right on this. Call. Decline Inc is transitory, which was the language, of course, Janet Yellen used us a few years ago. Cornflakes in his back actually below where it was when she was talking about how this is a telecom more. I know the fantas focused on the Dallas the, the, the trim mean inflation, index showing that there's, you know, stripping out the extremes on both sides. But, you know, when I'm take. On. And I've taken a look of law city of money is going, and the money supply. I'm looking at apply where the gap is going. I mean everybody talks about the tight labor market. But yet if it wasn't for the decline in the participation rate employment rate, would've already grabbed the four handle in the past couple of months, and capacity was ancient rates are starting to go down. Precipitously over the course of the past four months. So that's Kelly me fundamentally getting away from just what the data shows this week. We are rebuilding a positive that is gonna put disinflation pressure onto cornflakes from measures that are already below target. So my sense, is that the trend is your friend is not transitory in cornflakes, and it's going to be receiving quite dramatically in the next six twelve months, and ask a really short answer to the next question. All things being equal conditions. Stay the way they are. Have you changed your recession forecast? Have I changed my recessive forecast respect in the respect of whether recession could come sooner rather than later? Well, I mean. I mean I I've been saying that, you know, in the past year that recessionary pressures were building. And this is before, by the way, the, you know, the next chapter of the US, China trade War, I would think all along. Yeah, I'd say that in a second half of the year, recess start. I'm not gonna take the month. But I say second year Volvo public recession the United States David, Rosenberg chief economist, Gluskin Sheff,.
"bloomberg interactive brokers" Discussed on Bloomberg Radio New York
"Most placement officials will welcome postings for internships the process of writing opposed Incan, help an owner, formulate, what the internship will entail, and some placement offices have guides to writing posting on their websites, that Paul University College of communication guide. For example, says companies need to describe not only the perspective, interns responsibilities. But also they're learning objectives. Many business owners find that interns more dedicated when they're paid. If an intern is unpaid in over needs to make sure the work they're doing isn't work that an employee could be doing that. Could be a violation of federal labor laws owners also need to think about wearing in turn will work in the company's premises and who will be their mentor, and that's the Bloomberg small business report from. Bloomberg interactive brokers studio best it's forty seven minutes past the hour. And now it's time for Bloomberg opinion. This editorial was written by the Bloomberg editorial board in its struggle with China over trade and national security. The US has many legitimate grievances and a variety of weapons for seeking redress that doesn't mean it should use all of them the nuclear missile the US just launched it while way as a case in point last week. The Commerce Department placed while way on an entity list, which means US suppliers, may now need a licensed to do business with them, the ban threatens to drive one of China's most high-profile companies out of business. That would be a serious mistake. It will impose collateral damage on companies around the world, including American suppliers, and it undermines the implicit point of any U S, China trade deal. The US needs a larger plan that seeks a health. The're coexistence with China, crushing Weiwei looks like a split TJ miscalculation, this to'real was written by the Bloomberg editorial board four more Bloomberg opinion. Please go to Bloomberg dot com slash opinion or Opie I n go on the Bloomberg terminal. Thanks, charlie. Now let's check in with the Bloomberg affiliates to find out what's happening on most influential radio stations. Amanda rodeo on WBZ in Boston. I'm talking about earnings at hometown retailer, TJ eggs, Ed Corry on W, T, A M in Cleveland..
"bloomberg interactive brokers" Discussed on Bloomberg Radio New York
"The Bloomberg interactive brokers studio. This is Bloomberg best. In that we're going to get back to a conversation between David Rubenstein, co founder of the Carlisle group and host of Bloomberg television show, peer to peer conversations and Mary at president and chief executive officer, Arne Sorenson, you had a cyber hack of the Starwood loyalty program. Was it Starwood reservation system reservations? So. What caught who did the hacking? Well, we don't know and probably will never know the we know that somebody was in this Starwood reservation system from when from before we bought Starwood. So how much will it cost you to fix this hack in your penalties associated with it? We don't know the answer to that, either. It'll end up being a number of quarters of millions of dollars the penalties we don't know yet. Some people speculate that it was people in China who were interested in hacking in you have any comment on that there's been public, the public speculation that is China. We don't have the expertise to have a clue about them, but you hired somebody to figure it out or trying to figure it out. Now. We could in theory, I suppose, but we're not we're not investigators. What is the most profitable part of the hotel? Well, it would be in the guest room in conference. So of course conference has guest rooms tomb, so they're sort of a tweeter, if you will. But the guest for margins are great, you know, obviously, it depends a little bit on the precise rate in the market that you're in. There's the cost is really housekeeping and the capital costs of buying the materials in that room. The conference businesses could because banqueting is a fairly profitable. It's predictable food and beverage business. Unlike the restaurant business, which is a little harder to predict. All right. So let me ask you about hotels specific experience because I travel a lot, I'm on a road, maybe two hundred and thirty days a year. And I spend a lot of nights in hotels. My experience has been that everywhere I go every hotel, the minibar has the same thing in it. It's Pringles and towbar on now. Now, here's the Pringles person, the best salesperson the world, why is, why are Pringles in every single minibar. What, what, what is it with Pringles? We figure sooner or later, the government will come out and say, that's balanced meal. So you wanna be a head of the government. But in truth Pringles are, obviously, the Brandon brand is known broadly. They're packaged. Will you know, the they tend to be these cans about this big of brindles, but people seem to like it and topa around this same. These are two two bits of sort of ultimate quick comfort food when you're getting late or you're getting in early. You think it's been operate hotels like Marriott. They say we lose money on the mini bars. But if you look at the prices on many bars, they seem to be hard to lose money onto what, how do you lose money on many. This is the shocking thing we lose money on many bars. We lose money on room service and both are expensive. When you compare them to the question by bringing in a grocery store or the crust of buying breakfast at the cafe. How do you lose money on room service price are pretty high? Well, it, it, it, it is a little bit by market. Of course. In some markets in the world. We still make money on on room service. But if you look in the United States from service is higher end hotels, which means it's urban markets were labor is quite expensive were often required to have a separate line in the kitchen where that material is going to be done. It's going to be delivered. You've got you know, all the things that are associated with that service. And it just it's an expensive proposition. People check into a hotel. I check in hotels and say, here's my credit card. They want my ID these days. Okay, then when I check out they want my credit card again. I don't think they might credit card after I checked in the day before. And they wanted they needed again. Well, they shouldn't be that unless there's something deeply suspicious about, you.
Chevron, Occidental Petroleum And Bloomberg discussed on Bloomberg Businessweek
"Today. I major bidding war has broken out. No doubt about it in the Permian after being rebuffed several times Occidental Petroleum making public a thirty billion dollar offered by Anadarko petroleum as it looks to break up a proposed takeover offer by Chevron. I find this interesting. How this is all play out because it's a it's a very aggressive. It's not it's good to be the king. It's a very aggressive Bidin. It's going to be interesting. How in Dhaka handles it? The seventy six dollar per share cash and stock bid for the Texas based oil natural gas producer. It's twenty percent more than chevrons thirty three billion dollar agreement. So the gloves are off seven Casey is following it. All he's energy, America's team leader at America at Bloomberg news in our Bloomberg interactive brokers studio, where are we surprised that somebody else came out knowing? No, if you look at the Chevron bids was announced on April twelve and I think part from the first day everyday since then the Anadarko still has been trading slightly above that offer price. So it was it was it was in the price expecting for you. I mean facts on the morning of that deal. It was announced. We also reported that Occidental citing anonymous sources that Occidental had made an ova chill. So they just come and today. That's what that's what the news is so expecting Chevron to step up to the plate again. Well, perhaps. It's not a certain this is a Bloomberg market minute. After what
The future of Star Wars: All the known movies and TV series coming your way
"Disney is trying to reshape the media landscape this morning, and at least it's reshaping the picture for a shares. Shares surging more than ten percent to a record high. Joining us in our Bloomberg interactive brokers studios. I'm so pleased to say terror Lachapelle who covers all things media and deals and telecom for Bloomberg opinion, terra, I find this deal fascinating. They unleashed Disney. Plus, which is the answer to net flicks. But can we start with just how limited is this offering at first I mean, this offering six ninety nine a month and a lot has been made of the price. But it's because there's not going to be a whole lot on it to begin with. If you're a really big Star Wars fan, perhaps there's a dry there because they are going to be able to have all the old Star Wars films. Which wasn't a sure thing we didn't know that. There was a big surprise last night because doesn't it actually sold the rights to those movies to Turner awhile back? So they probably had to pay big time to get those rights back for the Disney plus app. So if. Star wars. Okay. You've got that a Star Wars series is going to be on it the mandatory orien-, and then a lot of old Disney movies. So if you have young kids, perhaps it's good for that. Because we know kids don't mind watching the same movies over and over again. It's a great way to keep them. Busy. That you know, it's it's build a sort of the family app compliment to ESPN, plus and Hulu, which are the sports and more of the content. I guess you could say, but to me it really is forced to per fans of Disney and six ninety nine you know, you really not getting a whole lot for that price at first what's the vision for Disney? Plus, I think Disney plus is the product of the center of the future of Disney, which is kind of amazing. And I made the point in my column today that that's why the name kind of concerns me because Disney plus implies it's sort of like an add on as supplement to the real Disney. When really they're sticking their future on this app. And it's not gonna be profitable. And until two thousand twenty four which is going to be a few years after CEO Bob Eiger, who's leading this mission as long gone. He's retiring in twenty twenty one. So there's still a lot of questions about what this is going to look like how it's going to disturb the rest of the empire as an increasing amount of content goes to the app and not to. Sneeze other properties. How's this going to be the future though? I mean, I assume that eventually it will have more content. You're talking about the limited offerings at the initial out. What is the content eventually? And how does this end up being the monster revenue driver that Disney really needs? So I think what they're envisioning is as we've sort of seen this bulk innovation of the TV industry that Disney is increasingly going to keep anything that comes that's made by Disney on Disney. Plus, that's where you're gonna have to subscribe to get it or ESPN, plus and Hulu, and maybe they'll be some sort of bundle of those three apps. But basically, if if you're a Star Wars fan, if you like marvel movies, if you want Pixar movies, National Geographic content, you're gonna have to subscribe to Disney. Plus, so they're really sort of. Monopolizing that content for their own app. And it's not going to be available in other places. I mean, you can still, you know, big big films. We'll still go to the movie theaters, and maybe people will still pay to go. See those marvel productions maybe that still draws people out to pave and go to the movie theaters. But at the end of the day, I think what they're saying is the app is going to be the new home of Disney, and you need to subscribe. If you want anything Disney, so people are focusing on Netflix today. Netflix shares are slightly lower. But to me the real losers here, potentially the big cable networks. Absolutely. I mean, Disney right now is very dependent on the traditional bundles still, and they're not fully moving away from that by any means with Disney plus app yet. They I hearing from keagan part of peak global market intelligence that Disney gets about fifteen dollars a month per subscriber from its top twelve TV networks, which is a ton of money, and they're gonna have this app for six ninety nine. They generated about three billion dollars in box. Office ticket sales last year from its films and eventers endgame opening later this month could be the biggest opening ever. So they are still very dependent on these former revenue streams, but I think Disney possible accelerate this court cutting trend because if you are such Disney fan, why would you subscribe to cable one hundred dollars hundred dollars a month or you could just get Disney for six ninety nine. And I think that's what they're really hoping for. Although can you really get it for six hundred nine. My question is when they actually start to incorporate more offerings onto Disney, plus can they possibly stay at this price that undercuts net flicks. I mean, that's the reason why people were so odd by it because it just blows that flex out at the water in terms of in terms of discounts. Right. I mean, they've left themselves a lot of over to raise the price at six ninety nine. It's much cheaper than net flicks at twelve ninety nine, but again, Netflix has more I would say diversity of content for adults at least. But yeah, they've left themselves a lot of room. And I I would imagine the company hasn't said anything about this. But I would. Imagine that over time as bigger hits make it to that app. And they're increasing number of originals. They will have both the wherewithal and the need to raise the price. Okay. So going forward four net flicks. What is sort of the key test about whether this will actually draw people away from it? Yeah. Because I think right now the draw. Netflix is good enough for the price. Right. Maybe it doesn't have always the the best quality movies. And it doesn't have some of the TV shows you like to watch on cable. But at the end of the day at thirteen dollars a month. That's kind of a great deal. The question is over time. Does it lose that appeal as Disney plus comes on board, and then AT and T launches some apparatus HBO and the other assets bought from Time Warner, and there's all these other free ad-supported apps coming coming out. Now this year. That question is do people still need to pay for net. Flicks. I think for a lot of people it's going to be sort of the base case. It's kind of like what you need. And then what else can you afford to pay for? But for others for parents, maybe doesn't plus a lot of their problems, and they don't need flex, and that'll be interesting to see over time does that flex sort of that that premium. I honestly want to use that quote for the rest of my life, maybe for parents, plus solves all of
"bloomberg interactive brokers" Discussed on Bloomberg Radio New York
"The Bloomberg interactive brokers studio, this is Bloomberg best. The early stages of any presidential race are fought over money and democratic candidates are building their war chest as fast as they can so add Bloomberg's David Westin. Spoke with Mark Lodder, Trump twenty twenty campaigns strategic communications director and former senior. Aide to vice President Mike Pence and Philippe brightness who served under Hillary Clinton. As deputy assistant secretary of state for strategic communications. Let's go to the list of exactly how the money thus far has been raised by the principal candidates. And we can see that. Actually, it's Bernie Sanders out front but follow fairly quickly on tour. Two three other major contenders. So what does that tell us anything police in the early stages here about Sanders, Harris award Buddha judge? Well, I think it saying things I had saying that a lot of excitement in the primary electorate, but more importantly it saying that you've got a handful of of candidates, including the ones you've listed. They're gonna go wire-to-wire. They're not going to run out of money. They're not going to get to the fall and not be able to put up ads or put people in the field. So if someone wants to get to we're going to see at least five six people getting tile in terms of comparing look, I think there's two different site types of fundraisers in the Democratic Party, right? They're the ones who are doing nothing. They just have to turn on the. Internet every morning, and they're getting a lot of small donors. And there are the ones who have to go and hold big fundraiser. There's a difference. Obviously, President Trump is leaning on the second kind more than the first. Okay. So that puts it directly to Mark fair.
Pinterest and Lyft move closer to IPO
"So twenty nineteen was eagerly anticipated for some of those unicorn IP as it would finally finally become public. Just this week. We heard from Pinterest, and they're expected to file confidentially for its IPO valuation of about twelve billion. Then you've got lift we're talking about maybe evaluation of. I think I don't have a number. I can't I don't have. But anyway, the other one is Uber and we're talking about one hundred twenty billion. So we're talking about finally, maybe some of these IPO's kidding the market and becoming public entities. Let's talk about it with Jeff Grebo. He's America's venture capital leader at Ernst and young based in San Jose, California in our Bloomberg interactive brokers studio in New York, and yeah, if you went late last year, this was going to be one of the big themes of twenty nineteen and then when the markets fell apart, everybody got a little worried, but nonetheless, we're starting to see league at IPO's. They will be coming. They will say, well that's going to be one thing. Leads nineteen two thousand eight. Eighteen was a phenomenal year. We had one hundred thirty eight billion dollars put to work which crushed whatever we saw in terms of what was put to work in the venture space in the dot com era. And so. And get your head around that everybody just sit with that was really great. Yeah. And and a big trend that drove that which is something that's also you'll get your head around was it was driven by mega rounds. So and we define a mega around is any company that's raised one hundred million dollars or more. There were two hundred and twenty one companies it raised one hundred million dollars or more in two thousand eighteen which is significant say the lease up from one hundred twenty nine year before right? And you do the math. That's there's two hundred sixty one working days in a year. That's almost one hundred million dollar deal a day for a year in the venture space. Where is all the money coming from or rather not where it's coming from per se to do the to do these deals, but what who's the loser on this end? Because if it's going into all this IPO, it's got to be coming out of somewhere. Well, the money. So you were talking about a little bit yields and whatnot. So we've been in an historic low yield environment. And what's happened is to get yield investors? Have had to assume more risk and that has pushed a ton of capital into the venture space. So other asset classes are buying down. That has ballooned the amount of capital that we've seen what's been in comparison. Right. We talk about whether it's family wealth offices. Whether it's instant pick your institutional investor right in that seat seeking yield. They have moved into other areas and big time in terms of providing money for startups and venture. Yeah. Because you go back probably seven or eight years, and we wrote something on this that what you if you look at other asset classes IPO's at that time were crushing other asset yields, and so a lot of these sophisticated investors buy in across multiple asset platforms, and so really even by IPO's. And so they decided to say, hey, why instead of just by why do we buy a little earlier, maybe we'll get more on the IPO? So in general as you say they're chasing risk if you will to to get yield these have you the rest of the stock market how how these performed I mean investors made the right decision. By putting money into into. I if you well, I mean, that's interesting phenomena in an interesting asset class not for everybody. I mean, I I can't tell you. I think year to date last year. IPO's worry pretty good bet. RIP Bloomberg IPO index was up five percent last year. Okay. And I'm trying to see what was going on that. Right. Let me just see my track record. I'll tell you that actually forgive me. That's for twenty seventeen. So let me see if I can get the I don't know. I don't have the two thousand nine hundred. But yeah, I think you're right that it was a better year. And so what happens is when yields are up in those markets more buyers come in. And so and you do have large buyers. It's just not mom and pops that are buying it. There's large institutions that by significant positions of these that actually mom and pops have exposure to you wanted to minimus basis through. Mutual funds and other types of things and other types of instruments. Well, it's interesting too. I do wonder now the renaissance IPO ETF it was actually down seventeen and a half percent last year. And I'm thinking that they probably if you take into account that December month really kind of change the overall indices, maybe some of it was then I'd have to take a look and just see how what the history was. But we are in a volatile environment. Yeah. It was up twenty nine percent of you ticket. I think till a little bit early. Sorry. I'm just playing around with. And so what I am curious about is because there's so much money flowing around. Jeff, I mean, it does allow I do wonder about the IP alternately come to market are they stronger are they healthier? Well, these companies are much older than they were you compare. Everybody loves to compare dot com. Era versus today and the companies today have have significant top line numbers and they've been around for quite some time. And they've got the other got some real beef to them and their and it gets to be more. A question of. How much is there there versus is there? A there there and back in the dot com era. It was a basically a lot of these IPO's were public venture capital. And now it becomes a bad on. Okay. How big will these companies be and can they with girth and the breadth in the meat that they've put on the bone? Can they get to be profitable? You've mentioned essentially will it slowdown. What is twenty nineteen go to look like a week going to keep going at that twenty eight thousand pace or we're starting to hit a wall somewhere? Nothing can continue to go up into the right forever. Find you know looking forward into twenty nineteen. I would find it hard to believe we would be twenty eight. But I think twenty nine thousand nine can be a fairly substantial year for a variety of reasons. One is we talked about the that is gonna shine. You're gonna see some significant companies go public in the next six months. That's that's gonna shine a bright light on the asset class, and there's gonna be some real money return to investors, and so that's gonna keep that piece of the equation going. What's the next round like after we get through the Uber's the lifts the pinta rests and a few others Airbnb. What are the ones that are kind of? What's the next round of now? I'm just curious like, what are you looking at because we've been looking at these I feel like for so long, and if talking about that, well, I mean or even just industries like where you're seeing kind of interesting developments. Well, there's a lot going on in fintech. There's a lot going in healthcare. I'm assuming with technology enabled one of industries, which is also another tale when helping to push all this money into venture capital and also helping to. Areas like New York, which was not a big venture capital place. But now it's got a significant start up, and he started PICO system and environment. Do you get nervous at all about in terms of the the market volatility? We've certainly seen increased volatility in the last year or so how does that impact? What we're seeing in terms of the world or does it just operate separately? These are ten plus your asset classes, they don't correct day-to-day monta month quarter to quarter year year, these are long term asset classes, you know. There was fifty five billion dollars raised into venture funds last year to be deployed over the next ten years. So there is significant dry powder. Now, if a substantial event or nuclear winter were to happen economically. Yeah. People will slow down. But there's also the old adage of hey recession is never a better time to start a company and to put money in the ground in venture capitals may got to put it to work right now. Otherwise, exactly their investors. Get frustrated they are on a timetable to deploy capital. And so, you know, so the IPO's are going to be one thing there is a significant number of companies out there. We're tracking over eighteen thousand venture backed startups in the US that have raised over half a trillion dollars at book value. So yeah, when you look at the pipeline, there's a lot to be fed there. So regardless of what happens a lot of these companies, raise capital Soleil will be coming back to market, you know, and to your point earlier, you know, up into the right forever. You know, people are starting to think about well. You know? It won't go up into the right? So should we start to think about being prepared for something? And so we're starting to hear about investors talking about, hey, we have other investors who want to come in. Why don't we do a preemptive around and just sit on it just to make sure what there's nothing wrong with having nine to twelve months of cash. The I was just gonna ask you that. How do you how to have your hedge that bet? So if you're in an initial investor, do you sort of let other people in and sell some of your shares to to hedge that if you will and just let more people in and spread your risk out. Well, that'd be that would be secondary. At actually have friends in the angel market who have done that who have taken money off the table. But primarily what it's doing. There will be some dilution especially because a lot of these are going to be growth rounds, which you'll be substantial amounts and certain of these investors that we talked about that are buying down or from other asset classes, we'll want to have a certain sluggish capital. And so and that also may give. Founders and employees and opportunity to give a little bit of
Fixed Income: Definition, Types, How It Affects Economy
"Let's talk fixed income Alex Harris bond reporter for Bloomberg news is in our Bloomberg interactive brokers studio, Alex so nice to see you. What are some talk about a crazy busy week free? But what are you looking at the markets today today, thankfully was a little bit calmer. You said it was boring. We're a little more come on. Let's just be relative to what was happening yesterday with the FOMC minutes. And there was a lot packed today. A little bit calmer was seen a backup and yields however, still range-bound because again, there's all this uncertainty floating around. So I think really today's move was driven more by the investment grade corporate bond calendar. You know yesterday you had alive lily come in with a with a big bond issue. Tens and out the curve and their funding an deal Tae, Boston scientific four point three billion. They were across the curves. Five cross the curve excuse me, five years to thirty years or bond market alive and kicking alive and kicking as long as there's day where you're not getting a whole lot of fedspeak and things are relatively calm. And there's not a lot of volatility. I think they can come in. And that's what's pushing the market a little bit. You have the five thirty s curve is steeper today. It's round fifty three basis points. So in on the new issue market what's the reception in there? And what's liquidity in the marketplace? Mean you're still getting people taking down these deals in clearly they're coming and they can come with four point five billion yesterday from Lilian then Boston scientific and follow up with another four point three reception is still good and as long as follow Tila ty- remains somewhat subdued and now the feds on hold. I think it just gives you a bit of an opening and the long end is an attractive place. For issue. Just because investors want that yields. So they're gonna pick up what they can get. So, but again, you know, ten year thirty year treasury yields still rangebound, we have trade uncertainty. We have Brexit uncertainty. We have all these issues on the table that have yet to be resolved. And until we get a resolution. A can't see the treasury yields breaking out one way or
"bloomberg interactive brokers" Discussed on Bloomberg Radio New York
"Live from the Bloomberg interactive brokers studio, we've been telling you about House Democrats and their plans to vote on legislation to provide a public campaign finance bonanza for their congressional candidates for more on this. Now, we're joined by Ken Doyle, Bloomberg government, senior editor for money and politics. And can we talk about this? This proposal before Democrats are supposed to be opposed to big money in politics. But apparently, not this kind of big money. What's the latest? The idea is that that they're opposed to big donors not necessarily big big money. Because this would this would make candidates who take public financing eligible for a lot of money, maybe even up to five million dollars. So, but the idea is to sort of counter the influence of big private donors by providing public funding for candidates who volunteer to to limit their private contributions. They would have to limit. Contributions to no more than two hundred dollars that would be eligible for this matching funds. So it's basically changing the mix, but there's so much money involved in campaigns right now, it's impossible. And under this the supreme court decisions that have come down in this area. It's very difficult. If not impossible to limit the overall amount. So it really is about changing the mix and they've they've introduced this Bill. It's really the centerpieces. It's designated as HR number one. It's it's really the centerpiece of what Democrats have said that they wanted to with their house majority. They've started the hearing process on it. They had the first hearing this week and are more hearing scheduled, and they hope to bring it. I think to the house floor and get it passed through the democratic controlled house in the coming weeks and make it really a central part of their argument for why Democrats ought to be in charge of the government. So can it looks like no matter how you slice it. If you are running for a high political office of any kind year gonna be having to somehow get into a multimillion dollar up. I mean, this is a lot of money. What difference is changing the mix do the differences influence, right? I mean that if you the system that we have. Now is very heavily influenced by big morning money donors, special interest, corporations unions lobbyists and individuals with with millions of dollars to to provide two campaigns. And the thought here is that that limits the influence of ordinary voters and participation of before voters a problem with just getting people to be interested in politics because they feel like they can't make a difference. And what happened in the last election was Democrats won a majority in the house with a lot of small donors support. They were able to to. Attract donors who could give limited small amounts over over the internet online, and they are trying to kind of encourage that trend by boosting with a big six to one match of of federal dollars. Which would be if that happened. It would really change the system. Okay. This is gonna be dead on arrival over in the Republican controlled Senate. Yeah. So this is about the issue of campaign finance actually about well. It's about getting deal over to the Senate for that will be talked about for the next couple of years as we run up to a presidential election in twenty twenty. It's about talk know, it's about saying Democrats are in favour of changing the system Republicans in that first hearing in the House Judiciary committee, the Republicans on the committee wind up very solidly against the Bill. Senator Mitch McConnell who's the Republican leader who said a very long term opponent. Of campaign finance reform. He made a statement on the Senate floor on the same day as the first hearing saying this is dead on arrival in in the Senate Republicans will oppose it, and it sets up a debate that I think the Democrats really wanna have you know, where they're they're saying. We're in favor of changing the system McConnell saying nobody cares about this. This is not an issue that people vote on and and the people the candidates don't really want it either. And so, you know, nothing's going to change. And that's that's the question. I think going forward is if the Democrats get through this through the house will anything happen in the Senate will there even be pressure on the Senate tacked on it is this sort of the Democrats answer to citizens United. Exactly, I mean, the citizens United supreme court decision in two thousand ten completely really changed. The the way that we financed campaigns and made outside spending groups that are funded by very large owners really essential to competitive campaigns. And this is why we see in the last. Campaign last midterm election campaign cost more than five billion dollars. It was more than a third higher than the than the largest than the previous midterm campaign by far the highest amount of money ever spending. And there's really no limit incite to what to wear cams campaigns will go after that. While we have you Mr. door. We have a whole bunch of people announcing their candidacies for the democratic nomination for president. When will we find out about their finances and their filings at the the first filings for those who have announced will be in April the first guy, so it is a while to see how things are do the campaigns themselves are going to announce things if they think they're doing. Well, they're really interesting example was kind of Harris who said, you know, that she raised a million and a half dollars the day after she announced, but that just comes from the campaign at self and the other campaigns Warren and some of these other people who have. Announced have not said anything about how much they're raising. So that may indicate that they're not doing as well. But Warren has just a I think something like ten million leftover Senate campaign, which he can roll over. Exactly, and she can do that. And she's you know, but the the other thing that's going to be interesting as sort of the mix of where the money comes from. And whether they are able to get the small donor support, and because all of these candidates so far have said they're going to reject money from corporate PACS, they want to reject the support of super PACS. They really want to rely on small donors when that's going to be an awful lot of candidates competing.
Tencent shares jump 3 percent after Chinese regulators approve new games
"Twenty two down one tenth of one percent. Nasdaq up forty seven up seven tenths of one percent in New York. Charlie pellett. Bloomberg daybreak Asia. Thirty three minutes past the hour. Let's take a look at the Asia Pacific. What to expect today? And what's happening at the moment. Here's Doug krizner. Let's begin with the euro, Brian because we were down quite a bit of New York trading at one point we actually dipped below a buck thirteen that in afternoon trading, which coincided with a report on German or the German government, reducing its twenty nineteen GDP forecast to one percent earlier in the day ECB president Mario Draghi intensified. His warning on the challenges facing the euro area right now, we're dollar thirteen zero six so with euro weakness, the dollar strengthened against the majors. Bloomberg. Spot index picking up about three tenths of one percent on the day slightly. Weaker yen one oh nine fifty three in spite of that pullback, though, we're not seeing a lot of support for futures on the Nikkei trading in Chicago. We're only about twenty points above where we finished in the cash market yesterday in Japan, and in a little while we're going to get the Japanese CPI for the month of December want to get you to Sydney now, we've got Paul Allen. They're looking at the early goings down under and maybe a little taste of what's happening in New Zealand. Good morning, Paul. Yeah. Morning. Doug, gambit of a mixed bag in this part of the world, the dole is continuing its slide. Seventy eighty one the six high by one percent, but I wanna tell you about one of the worst performance today. I am he offers seven percent. This is after the wealth management warned the full year earnings are going to slump another thirty five percent costs piling up there from the financial advice scandal. I am going gonna take another one hundred and sixty million AUSSIE dollar hidden fiscal twenty nineteen on top of an earlier too. Hundred million dollar hit. So those shares easing off today over New Zealand daddy. So looking pretty flat right now dR, all right? Thanks to Bloomberg's Paul Allen here in New York. We had crude oil picking up about one percent. There was a report from the government. The energy information agency actually came out with a rather bearish view on the shale, boom. However looks like the growing instability in Venezuela is carrying the day helped WTI finish above fifty three a barrel right now, we are at fifty three o nine in the electron accession. I'm Doug krizner at Bloomberg. Interactive brokers studio in New York rish. Yeah. Thanks, the two bills aimed at ending. The US government shutdown has failed the two sides in anti gay shading at banks is go global news. And he's in the Bloomberg nine hundred sixty San Francisco newsroom. Yeah. Rish. Thank you. It's back to square one. Well, with the exception that both sides now. No there are two options compromise or leave the agency's shutdown. Bloomberg's Marty Shankar says the two sides now have gone back to the bargaining table. The outlines of some sort of a compromise that would continue that would open up the government for three weeks contain some semblance of border security. And the president says he is open that it will compromise reasonable agreement. I would support again, maybe a pro rated deal on a Wally says, but that a wall has to be part of it earlier in the day Chuck Schumer said he needs to know that the president will sign something that they negotiate last month. The Senate unanimously passed the short term Bill to keep the government open. It was leader McConnell's idea. Everyone thought the president would support it. But President Trump buckled to the most extreme voices in his party. So the talks are still on Japanese whalers say they will form a fleet of at least five vessels to resume commercial whale hunting, July first it says exact locations will be determined by research in June. It says catch quota and hunting scheduled not scheduled and decided North Korea's Kim Jong UN has ordered preparations for a second summit with Donald Trump. He says he will wait with patience and in good faith to work toward a common goal. The issue is what Cam needs from Trump to make any moves toward denuclearisation. The US has ordered non-emergency government employees out of Venezuela and the Trump administration trying to clarify statements made by commerce secretary Wilbur Ross about government workers thirty days of that. Some people will be out. There's no real reason why they shouldn't be able to get a loan. Against. So the president asked about it today, and he efforts what he was he being Ross was trying to say banks are working along. If you have mortgages, the mortgage is the mortgage the folks collecting the interest in all of those things, they work alone. And that's what happens in down like this. They know the people they've been dealing with them for years, and they work along the grocery store and explanation of why they really don't need to rely on food banks global news twenty four hours a day on Aaron a tick tock on Twitter power by more than twenty seven hundred journalists and analysts in more than one hundred twenty countries in San Francisco, I'm Ed Baxter. This is Bloomberg Brian. All right. Ed. Thanks very much. Thirty eight minutes here past the hour. It's time for global sports. Dan Schwartzman
Intel misses revenue targets and issues weak outlook amid record revenue
"Semiconductor and hardware. Analysts for Bloomberg intelligence. He has made his way into our Bloomberg interactive brokers right now he's in high demand. Just saw you up there on the TV. And here you are with us. Now, what do you make of this because investors don't like it? Look, I mean, the bar was set pretty low for from an expectation standpoint. The recent few week rally here and Intel failed to care the bar rate. So if you have strength yourself from the from the last few weeks, the expectation was that data centre was going to be week. We know the cloud demand is weak, particularly in the first half Seagate has told us that western digits told us that. So this is unsurprising we hope that expectations may have been low enough that they would have been able to clear that low bar and that did not happen, right? The data center seals being week has a disproportionate effect on earnings because the sales of the serotypes carry higher margin. So that's unsurprising earnings miss is substantial particularly in one q. So again when you step back and look at it is causing a disproportionate amount of harm. We hope that it comes back in the second half of the year. That's where all the other companies in the space. They're saying they also missed but the expectations in their cases TI esky ki-hyon slum research where low enough that they were the stocks rallied right in this case that is not the case because the bar was low, but they went lower. What's what what I was just going to say because we saw those other results as we go into tomorrow. Is there a little bit of a contagion that goes through the rest of the chips? So this this sort of rights itself, right? Don't let we are not in the last few weeks. We've been taken aback way the strength of the of the rally, and we're we are setup into Allie. The chip Rodney and are set up into twenty nineteen is we we want this love hate relationship with semiconductors to go way. We weren't apathy. Right. When people don't care about semiconductors anymore. That's when it's an interesting time to look at it. Right. When companies are still trading adroitly fifteen times, it's a median multiple the large gap semiconductor group from Bloomberg intelligence and earnings have been cut only seven percent or twenty nine hundred then earnings needs to be cut far more dramatically in multiple needs to come down a little bit more. But more importantly, we warned expectations to going, right? And I just want to point out some other players Texas Instruments down point three percent as a. Applied Materials trading down about two percent in the after hours. Just quickly sheera twenty thirty seconds here. I mean, their CEO though is facing challenges they've got an acting CEO. Right. And so we're still waiting for the new guy. Yeah. I mean, I think that that is really that's the big pain. Here is that this company has been operating with an interim CEO since June,
Asia stocks calm as China slows
"What's happening in financial markets as the Asian trading day gets rolling. Let's get it over to Bloomberg's Doug krizner. You were talking earlier about one of the components. I guess a foundational component for this optimism being optimism on U S China trade, given the fact that is Bloomberg news reported last week. The Chinese were making some kind of offer on a path to eliminate the trade deficit with the US. But now we're hearing that the US and China have made very little in the way of progress when it comes to the issue of IT, we are told Chinese officials have denied IP theft, and they have asked the US for proof. So in turn the US T R, the office of the trade Representative of told US lawmakers of the lack of progress on the issue of IP. This may have been one of the factors helping to take equities from session. Highs here in the early asiapac session. We also have negative South Korea neck port export data for the first twenty days of the month of decline of nine and a half. Half percent. If you look at semiconductors by themselves. Semiconductor exports in the first twenty days were down twenty eight point eight percent. The Korean one right now against the dollar weaker by four tenths of one percent. Let's look at the equity picture very quickly in Seoul, the kospi down two tenths of one percent, Sydney. Asx two hundred is better by two tenths of one percent. In tokyo. The Nikkei still holding onto a gain of about four tenths of one percent. We had been higher by about one percent earlier. But the yen has strengthened now against the dollar to one oh nine fifty five in that has helped to take some of the wind out of the sales of the Nikkei in Hong Kong hang sang up three tenths of one percents. Shanghai composite. Meantime, better by about three tenths of one percent. Now, we have a holiday in the states markets will be closed in observance of the Martin Luther King junior day. So as a result, no trading in US treasuries in the Tokyo session. The ten year was last quoted at a yield of two point seven eight percent. I'm Doug krizner at Bloomberg. Interactive brokers studio in. New York, Paul. All right. Thanks very much. Doug. Well, the second Trump Kim summit is expected to be held in Vietnam. Baxter's. Global news in the Bloomberg nine sixty San Francisco newsroom. Ed, exactly right, Paul. That's the word today from the Trump administration. Anyway, vice President Mike Pence on FOX saying the US goal to begin to make real the denuclearization. That can Jong on committed to the first word is location Hanoi. But that hasn't been firmed up. We're told denying hokey men city also appear to be in the running. He you nations are split and disagreeing over how long they think the UK could delay Brexit how some of them pushing for up to a year. Others want pressure applied to accept a deal as soon as possible it's up to the UK to ask for a delay. Something Prime Minister, Theresa may has adamantly said she will not do you k- trade secretary Liam Fox in the BBC says the message to the EU is that there is a real possibility of Brexit without a deal there watching my message stem is I hope you've understood from this program that new deal is a real possibility at least put the African. And may is preparing to set out where Brexit goes next in parliament tomorrow MP's are already preparing to take control of the process. She's had a call with her cabinet today. Japan's Prime Minister Shinzo Abe's heads for talks in Moscow this week. The hope is resolution of the seventy year old dispute over Pacific islands, but Russian rhetoric has turned strident as foreign minister Sergey Lavrov says Russia will not surrender any territory and is publicly offering a pointed reminder of Japan's World War to defeat. Japan's hope would be that this is just pre negotiation rhetoric. US house leadership is how the Trump announcement over the weekend of a compromise which would give some dreamers, DACA. Three years to stay in the US. They say, it's an odd started. But Republican James Langford says it is a very good approaching the presents put a reasonable compromise on the table. Everyone knew we're going to go through this process. We're gonna end up compromising on multiple different areas to be able to resolve it. But the core elements are there that we all strongly believe about. But democratic Senator Mark Warner says this announcement by the president could be a starting point. But the government has to be opened. I what we cannot do. And I've actually had Republicans as well recognizes is that we cannot reward the kind of behavior of hostage-taking because if the president can arbitrarily shut down now he will do it time and again warned her on NBC and the House Democratic whip James Clyburn on FOX says he has a path forward temporary protective status for all people sick in the come to this country and the Trump Tower Russia talks didn't end until November election year. That's a far later than has ever been admitted by the Trump administration personal attorney Rudy Giuliani and CNN saying yes, November. But I'm not I'm not at all concerned about that. He gave a full and complete answer to it. I can't share the whole thing with you. But I can't share the conclusion, which is he had conversations with Michael Cohen. But it was Michael Collins driving the project says he never ordered him to lie to congress in San Francisco. I'm Ed backs. Stir? This is Bloomberg Bryan, sir. All right. Ed, let's move on to sport Donna pages with
Bloomberg, New York And US discussed on Bloomberg Daybreak: Asia
"All right. Let's get a closer look at what's expected here in the Asia Pacific. And in fact, what's happening here. Doug, I mentioned a five percent rally and just an full of days in Hong Kong, but still down fifteen percent over the past year and the CSI three hundred and China down thirty percent even after the gains of late. Yeah. Right now, hang sang is up about one point five percent in the Japanese market. The Nikkei is higher to where seeing the trade essentially flat against the dollar here. One. Oh, eight. Eight seventy infotech the only stock group within the Nikkei, that's showing weakness energy shares are being helped out a bit by a rise in the price of crude oil WTI right now in the electron accession fifty thirty to the game. There is about one percent during New York. Trading crew had been up for a seventh straight session. The bet here is for tighter supply, given the OPEC cuts we've been talking about and consider what may happen to the growth story. If if we do get traction on a U S China trade deal right now in Seoul, the kospi is up by about one point four percent in Sydney. Asx two hundred ahead nine tenths of one percent. And on the mainland. Shanghai composite is ahead about six tenths of one percent. Long term interest rates relatively stable here in the Tokyo session. If you're looking at the US ten year treasury we've backed up about three basis points in yield in New York on Tuesday to seventy two right now is kind of where we are trading. The dollar is pulling in about two tenths of one percent. If you look at the Bloomberg dollar spot index. That's about the same degree that we were up in New York. If you look at the Bloomberg dollar spot we were hired by two tenths of one percent. Offshore Chinese one right now six eighty four forty so we're a stronger against the dollar by two tenths of one percent. I'm Doug krizner live at the Bloomberg interactive brokers studio. Juliette? Thank you, Doug. And is apple story going to get worse or to set a report coming through from the Nikkei on the Bloomberg that apple will cut production of three new iphone models by ten percent will US President Donald Trump will take a tight to the era. I should say in about half an hour to present his case to build a border barrier. Ed Baxter is covering all the global news in the Bloomberg nine sixty San Francisco newsroom. Ed, Juliet, he's hearing voices in his head from from outside his conservative allies are pushing to have him declare a national emergency and use those dollars. Bloomberg Joe subject says that's not what we're hearing that he will say we're told that the Trump will offer something of an olive branch in some form or fashion to the Democrats who have been at at stalemate with it. He's also. Oh invited the top leaders of both parties in congress to the White House tomorrow, and he's going to talk to. Republican senators at their weekly lunch. Tomorrow's no, of course, all of that can change with a tweet and the president's case already being made by vice President Mike Pence today, we need new resources we need to build a wall. But we
"bloomberg interactive brokers" Discussed on Bloomberg Radio New York
"Strange and people change. So just try to. Your bands Brunei. Head your bets. I got it. Well, and there's no person better than tags. Peggy Collins investing team leader for Bloomberg here in our Bloomberg interactive brokers. The Peggy Collins fans studio. We love when she stops by. It's friday. It's Friday last time we had well, she's a little disappointed. But it is Also Friday she's a little display because last time she was here we held her over and she got to drink. We're not doing that. We're taking real estate. Wait a millennium from holiday cocktails. We held her over with a quotation. Yeah. Exactly. She's like, please don't make me stay in the studio. So people may be cracking open some champagne in the hedge fund world, some hedge funds. We talked so much about some poor performance. But some people actually putting up some good numbers, including the church. That's right. Jason Anthony Scaramucci back at skybridge capital after his quick turn in the White House working for President Donald Trump. And he was one of the winners last year that's important to note that Anthony Scaramucci skybridge capital is actually what people call a fund of fun. So instead of a hedge fund where they're picking individual stocks that are going to rise or fall, his company picks a variety of hedge funds, and then allocates money to it for investors. But they were one of the ones that was up and more than the average fund of funds this year. And it was an interesting year for skybridge because it was a year when Anthony Scaramucci essentially had stepped back from the company in the process of working for the Trump administration and even at points, the company was a potentially going to be sold and then in may he returned. And so he seems to be coming back with some sort of positive note, which is hard to find these days in the hedge from world, but I will say just crossing on the Bloomberg earlier this afternoon by our team was a story that did note that there are several hedge funds straight up hedge funds out there that did post some good numbers in December. And all we had heard. Recently was some of the travesties like David Einhorn of greenlight capital that suffered another horrible Munton December. But we're seeing some of the smaller funds. Interesting to note that some of the smaller hedge funds little bit more nimble able to move more quickly potentially that invested in some things like shorting Europe or Asia debt, actually, posted some good returns. Well, and I'm glad you brought that up because I do feel like one of the little not micro themes of sorts that we're starting to see is that the sort of place a bunch of bets across the table. And hope they work out may not work as well for hedge funds. This idea of like kind of investing with convictions seems to be the way to go, and candidly, that's why people pay them a lot of money right for big ideas that they go bold on right? And that's how the industry started. Jason was that you had some managers who were making some big bets, but with a smaller amount of money, but it was hard. And so they stood out when they were right or when they were brave enough to short a company, and they also were right? So over the past. A couple of years. Interesting knows that we have seen a number of family offices, some of the wealthiest families and investors around the world as opposed to big pools of capital like pension funds start to gravitate towards smaller more, niche hedge funds that are just investing in healthcare stocks, for example, or just media and technology, and we're starting to see potentially some of the the games there were you look at. I'm just looking at some of the specifics within the story on the terminal the fifty three million dollar cress cat capital fund, climbing forty point five percent. And it's global macro hedge fund and thirty percent its long short hedge fund, and what it do as a lot of. It was a China play. Right. Exactly. And those are numbers those double digit positive returns are ones that we haven't seen really this year and they're much smaller funds. Exactly, exactly smaller and another great story. I hate to I hate to be positive positive on coverage. This week put another great story by Melissa. Carson our team this year that that is similar in terms of different types of hedge funds actually doing well or hedge funds adapting. Twenty nine hundred thousand to the new realities was a basal, basically about hedge funds with new stripes. So hedge funds that are not necessarily going all in the public Margaret's, but doing some more P E, which, you know, so well Jason or investing in venture capital that they're trying to diversify from the public markets to essentially get some of the attractive returns that we're seeing in the private markets. Well, and I do want to point out because it involves part of your world as well. What is the most read stories right now, we talked about it right at the close there. Carol is Apollo said to consider a bid for GE's jet leasing business. That's GE capital aviation services. This would be a forty billion dollars. He'll give or take could come in pieces. But that would be a major major move forward in elbow land. That's right, huge dollar figure. And some of the reasons why someone like an Apollo is is a name out there is because they're one of the big firms that have enough capital to do something now March, right? And they've been talked about rumor today about maybe a deal with. You not to do something with game. Stop. It's gonna be making here. So exciting. League table. Their important, by the way, league tables do matter. Let's also get a check on world and.
China: October money and credit data both surprise on the downside
"Markets up and running Doug krizner is tracking them for us. Fairmont of weakness with the exception of Tokyo where the Nikkei is now higher by four tenths of one percent. Some of this may be due to a weaker yen at one thirteen ninety four against the dollar wanted to get to our bureau in Tokyo, bring in Bloomberg's Jeff Sutherland for a closer look at what's happening on the ground there. Good morning. Jeff good morning. Well, we did get a report on GDP this morning and as expected Japan's economy got hit from several sides during the third quarter with GP shrinking one point two percent. That's the second time. Here we've seen a contraction of discount around because of the earthquakes and typhoons and heavy rains shut down factories and airports, but also experts weekend because of softer globally demand in that may reflect the impact of a trade war. And the overall result was a bit worse than economists had expected, but they're senior recovering the fourth quarter. Meanwhile, stocks are positive after yesterday's keep declined the Nikkei after about point three percent, and automakers are providing the biggest boost on hopes that the Trump administration will hold off on new tariffs for autos, but energy shares are down that dot yes, indeed energy. That was the same story. We had here in the states with a collapse in the price of crude oil WTI during New York trading fell to a nine month, low the drop was greater than seven percent and a lot of factors going on in the oil. Patch? Not the least of which all the latest tweets from President Trump with respect to being critical of Saudi Arabia on reducing output for the kingdom. In Hong Kong. Hang Seng down three tenths of one percents. Shanghai composite is off about two tenths of one percent right now in Seoul, the kospi down one tenth of one percent. And in Sydney, the ASX two hundred is weaker by eight tenths of one percent US ten year treasury in the Tokyo session, yielding three point one four percent. I'm Doug krizner in the Bloomberg interactive brokers studio in New York. Juliette? Thank you, Doug. We'll as the SEM meetings continue today. What is the prime focus? Ed Baxter is covering all the global news in the
"Its Business Time" for Rocket Lab's first commercial flight
"Like the giants. Launched by Elon Musk's. Spacex rocket labs electron is just fifty six feet high. And it carries a payload of just five hundred pounds. Peter back, the founder of rocket lab describes his firm as the FedEx of rockets just a little man that delivers a parcel. He believes with the miniaturization of spacecraft at rockets and entirely new part of the economy has access to the final frontier advances in technology me that smaller satellites can perform as well as their bulky predecessors. And what once took the size of a car is not the size of a microwave oven. And with exactly the same kind of capabilities. That is today's Bloomberg small business report. From the Bloomberg interactive brokers studio, this is Bloomberg best. It's forty eight minutes past the hour. And now, it's time for Bloomberg opinion. Here's
Trump says 'I think we'll make a deal with China' on trade
"Adviser. Larry cudlow said that he was not as optimistic for a deal as he once was but then a short while later, President Trump said he does think that a deal with China's going to be reached you'll recall that last Thursday, we had that report of President Trump asking officials to draft terms for a deal ahead of that meeting with Chinese president Xi Jinping at the end of the month. So take a deep breath step back and remember we've got an election here in the states on Tuesday. Now, there's also the issue of rates this Thursday. We've got the fed meeting. And you look at the employment report that we had last Friday. The numbers were above estimates annual rate wages rising over three percent nothing to dissuade the fed from it's tightening path ten year treasury intraday Friday hit a yield of three point two two percent last quoted at three twenty one. We also have the US sanctions on Iranian oil. Officially resuming in six hours WTI in the New York session down nine tenths of one percent Friday right now, we're trading sixty three oh four. I'm Doug Christner live from the Bloomberg interactive brokers studio, Brian to you in Singapore. Well, Doug, thank you. And as you suggest investors will be keeping a close eye on a
"bloomberg interactive brokers" Discussed on Bloomberg Radio New York
"The Bloomberg interactive brokers studio in an interview with axios on HBO, President Trump asserted that he can end birthright citizenship in the US with an executive order. We're the only country in the world where a person comes in has a baby and the baby is essentially a citizen of the United States for eighty five years with all of those benefits. It's ridiculous. It's ridiculous. And it has to end in fact, many countries, including Canada, Mexico, Brazil and Argentina have US style birthright citizenship and President Trump's efforts are likely to meet stiff resistance in the courts. Joining me is Suzanna, Sherry it. Professor at Vanderbilt University law school. Most legal scholars not all but most say the law on its face and interpretations show that children born to illegal immigrants are US citizens. Explain the basis of that legal thinking well, the fourteenth amendment to the constitution starts by saying all persons born or naturalized in the United States and subject to the jurisdiction thereof are citizens of the United States and of the state where they reside. So the fourteenth amendment says it right there, if you're born in the United States, you are a citizen now explain the legal perspective of those who point to those words subject to the jurisdiction thereof and say the fourteenth amendment doesn't cover the children of illegal immigrants. Well, what the the purpose of the subject to the jurisdiction thereof language was to codify the common law exceptions to birthright citizenship. So at the time that the fourteenth amendment was adopted, and in fact at the time of the American revolution common law in England. And then eventually common line the United States had birthright citizenship, but there were two exceptions. You were not a citizen if you were born in a country, but you were the child of diplomats from a foreign country. And you were not a didn't have birthright citizenship if you were born in a country, but you were the child of an alien enemies in hostile occupation as the common law it in other words, foreign diplomats and invading armies were not subject to the jurisdiction of the host country. And so they're children didn't have birthright citizenship and the purpose of the sub. Object to jurisdiction language was just to make it clear that although most people would have birthright citizenship, those two exceptions would continue to be exceptions explain the supreme court's position. It's never addressed this particular issue directly and the case in which he did address this issue was an eighteen ninety eight. Well, it did address it pretty directly. It was in eighteen ninety eight. It was in a case called Wong, Kim ark. And Wong Kim ark had been born in the United States of parents who were Chinese citizens. Now it so happened that they were legally in the United States. But, you know, the supreme court never even mentioned that the majority opinion never cared. Whether they were legal or illegal, this the majority opinion simply said, they were residing in the United States, and he was born in the United States, and they said unequivocally the nothing is. Better settled than the doctrine, the children even of aliens born in a country while the parents are residents. There are subjects by birth. And the court went out of its way to say, the only two exceptions were for diplomats and invading armies, and that it it didn't matter why the parents were here or how long they were here. Even if they were here for a few days temporarily so journeying here the court said the children would still be citizens. So I think that case is in fact directly on point in some ways. Kim Wong Kim ark had an even bigger problem than the undocked the children of undocumented immigrants today under the law of the United States and the law of China at the time his parents could never have become citizens. Chinese people who were were born in China could not become American citizens. So the only way he could come. Citizen was because he was born here. So President Trump says he can end birthright citizenship with an executive order does that conflict with the administration's claims that President Obama could not start DACA whether unilateral action. It does conflict with that. And it I think an even a weaker claim that is starting DACA might have taken congressional approval, but it wasn't trying to change constitutional rules. What President Trump says he wants to do would be to try to change the constitutional rule, which he couldn't do even if he had congress with him that is even congress couldn't pass a law stripping these American born children of their birthright citizenship, assuming that this is not just a plan of Trump's to Rev up his base before the midterms. And that he actually does issue an executive order to end birthright citizenship, what kind of challenges would that face in the courts. Well, I think it would be challenged immediately. Bye. Children who were born here, and who would therefore be in danger of having their citizen born here of undocumented immigrants, and who would therefore being danger of having their citizenship taken away. And I believe that the attorney general of the state of Washington has already indicated that he would bring suit on behalf of the American citizens within his state who would be affected by this. The state of Washington was heavily involved in and brought several of the cases challenging Trump's travel ban order. Susannah, if it did reach the supreme court by some stretch of the imagination. Are there? Justices on the court who might support Trump's interpretation. I certainly hope not because there's really no plausible legal argument in favor of it. This is a constitutional doctrine. It is right there in the constitution. The tax is clear. The history is clear. The president is clear. So it really doesn't matter what your theory of constitutional interpretation is it all points to the same thing, which is that it would take a constitutional amendment to change birthright citizenship and just remind us about how much it takes to have a constitutional amendment and why we're not likely to see one, well, the congress both houses of congress after propose it, and then it has to be ratified by three quarters of the states, San it's only the constitutions only been amended twenty seven times and ten of those were all at once. So highly unlikely, but there there has been some minority viewpoints through the years about this amendment. What what brings it up every once in a while. Well, I think it's birthright citizenship is not always very popular. There are a lot of things in the constitution that aren't popular and from time to time both state governments and the federal government or people in those governments try to change them or try to get around them. And usually it ends up in the courts and the courts say, no, all right. Thanks so much. Susannah, thanks for joining us at Suzanna..
GE falls below $10 for first time since 2009 after analysts say dividend cut may not be enough
"Its first earnings under its newest CEO. Let's get into this with Jim corridor equity analyst over at CF are a research on the phone in New York City. He cut his twelve month price target in two thousand eighteen EPS estimates on GE also carrying Ubale heart is our senior industrials analysts at Bloomberg intelligence. She's here in our Bloomberg interactive brokers studio, Karen I want to start with you. We mentioned this stock tumbling to a two thousand nine low below ten dollars. And that's where it sits right now. Ninety six we expected there to be a lot Latin this quarter a lot of bad junk, if you will is it worse than we expected. Walk walk us through it. I think people wanted more. There's a first of all the investigation. Now, people are like how big is that black? All the additional DOJ investigation, adding the goodwill charge that black hole is what scared people for awhile. And now, it just got bigger, and they also said that they have to help fund put more money into GE capital. The DOJ has been looking into that twenty two billion dollar charge that she took in connection with its power you. Yes. Okay. And so sorry, Jim. I it's you take a look at this worse than you expected. I mean what what was the big surprise here? Because we knew that there were some things that obviously got Larry Culpepper predecessor fired. So what really caught people off guard. I think it's the combination of the announcement of the DOJ investigation coupled with the cutting of the dividend by almost ninety five percents wiping out the dividend investors that were in the stock for the dividend. Even though it was reduced from earlier this year already. We're exiting at one cent per share at the same time that investors that were holding on with hopes for restructuring are disheartened by DOJ an SEC investigations. So are we missing something? It's an eighty six billion dollar market cap company. That's expected to have one hundred and twenty billion dollars in revenues. I mean, Karen, it's not like there is value in General Electric in. I think it's it's the unknowns that are scaring people if I look at the aerospace business is an unbelievable business, and it blew this things away in this quarter healthcare is good. I mean, standalone the company certainly got a lot of value in it. But it's just how big are the charges. How much will they pay? I have a thought on the goodwill right off. There's a lot of flexibility on when you have to recognize a goodwill charge. Caterpillar? Four years losing seventy five percent of their revenues in their mining business. And we kept saying are you going to write it down? What are you gonna write it down? There was a clause in their ten. K that says basically as long as you think there is value there over the long term, you don't necessarily have to write it down. I don't know what GE will decide, but we were badgering them to do it. And guess what they were right? The businesses rebounding. It's up twenty five percent from the bottom. And it's not back where it was. So there's that's what I learned. Oh, there's a lot more flexibility in this. So I wouldn't think they're going to necessarily. Have to take an a bigger hit. So Jim what do they need to do? Now. What do you need to hear from call to give you confidence that he's got this ship closer to to write than before? Number one. We need to have these restructurings and he's right down. Stop. We can't have a twenty two billion dollars here. Fifteen billion dollars charge in January and have it keep going on. And on we need to have stability. So that we can have some faith for the future member to Mr. call past set some targets, which they are setting. Are they need to hit them execute on these targets? So you can't really even figure out how to value a stock. Like, gee, you have some kind of firm financial data you could trust that when they tell you a credit revenue or earnings guidance. But there's a good chance they might hit. And they've missed target after target. If the target had endless restructuring, so they need to put a stop to that and start hitting at executing again. Well, okay. But do you expect that Jim to start next quarter? I'm just curious if they haven't given the new guy kind of time to get settled in a seat and really figure out where all the problems are buried so that it can come out and say, hey, folks, here's here here. It all is are we need to be patient and could be expect maybe another couple of quarters where things. We're going to be you know, we're gonna have some surprises coming out. So yeah, I would argue for patients, but if you look at GE investors, angry they didn't give John Flannery six months to to to restructuring program before they start in the door. So you know, it's gonna take awhile to take six months to a year before you can get a ship. The size of a turnaround, but investors are angry at impatient. And they're unlikely to give the company much time. They're worried about the financial side. And they didn't tell us away. They're going to generate real cash. You know, they said we're not doing Baker Hughes. The sale of Baker us shares earlier where we're not selling G casts were not, you know, they haven't given us a way we're not doing an equity offering then how you going to get out of this cash Meyer. So do you think I'll tell you? They change their mind on that. And what's the most likely scenario to raise that money? I think they do change their mind on on some of this. First of all Baker us announced today that they're halting their stock repurchase. Waiting to see what GE is gonna do. Gee, said they're not changing the. Timeframe. So there is some kind of conflict there Baker uses that basically saying, we'll take it. We'll take it. And yeah, we'll take it off the market in advance of the John July twenty nineteen lock-up period. Also GECAS they love that business. I'm not so sure they're ready to do something with that. But they're getting knocked on the door. You know, the doors get knocked down on that aircraft air aviation finance business. I don't think they're ready for that yet. But but hey, Jim just quickly got about thirty seconds. You kept your hold rating despite cutting the price target and the full year EPS estimate why just quickly. There's a lot of value. A lot of value at the company. They have great assets. They are leader in aviation transportation is doing great even though they're spinning it off healthcare is a leader in oil and gas showed stability this quarter. So there are some great assets at GE, and if they could just get they're restructuring halted get the company back on firm footing. There's going to be value there. But it's just a matter of when. It's tough to put a sell on of stock is down there. Thirty seven percent is industrial do want to rotate into the stock. You've seen. The soccer hour over time. And if they could just get some good news going. Rotate back into the sheriff down about ten percent today down forty three percent so far in two thousand eighteen Jim corridor equity analyst oversee far a research on the phone in New York. Karen, you will heart. Thank you senior industrials analyst at Bloomberg intelligence in our Bloomberg interactive brokers studio, you're listening to Bloomberg BusinessWeek, Carol Massar and Jason Kelly. This is a Bloomberg.
Alphabet misses Wall Street revenue estimates; shares fall
"Climbing forty nine points of one point nine percent. Dow industrials rally four hundred one points off one point six percent, while the NASDAQ composite index picked up two hundred ten points are by three percent. I'm Charlie Pellett. That's a Bloomberg business flash. Bloomberg best with June Grasso and Ed Baxter continuance. From the Bloomberg interactive brokers studio, this is Bloomberg best today. UBS CEO, Sergio Armani told investors at the Bank would shoot for a bolder set of financial targets but kept a January goal of attracting net new money. He spoke with Bloomberg's Nara chayhitch. In london. Let's start on a tweaking of the financial targets is this about growth visit about cost-cutting. What is the message for investors is about both? Actually, we want to reiterate the story. That's why we always to look at ways to become more efficient than we are doing that. The real story for us is are we free up resources through costs initiatives to reinvest in our business. And that's the reason why you should our plans, we as fact our cost base to stay flat excluding variable compensation. Performance performance-related and grow our top line. And so growing the top line is sustained by two cycle are trends that we are experiencing wealth creation and wealth transfer into ward and also the opening up of China's as as a financial markets and in general, we do cintos? Two forces allowing us to grow at least as much as the real duty growth globally. All right. Let's talk more about growth, and where's the growth gonna come from in global wealth management, particularly in the US? Well, actually in the US our next focus would be on. Developing more, our alt-right high net worth the offering and enlarging and bringing our expertise that we have globally on that area together with the family offices kept communities that we already have into the US and tapping a market that he's very promising for us. And that he's under tapped, honestly for UBS the second areas of growth for us is that we didn't really touch the US persons outside the US in the last ten years. And I think this is also very nice opportunity. We do we do factor around seventy billion of influencing the next door three years to come from. That's segment of Brian's interesting. So talking about ex-pats Darren and wealth management all regions data book inflows except the Americas. So in the US, what can you offer clients, particularly in global wealth management, but also in other areas that you'll US competitors. Can't well. Well, I think it's really first of all I would say that said our inflows closing the US. Are broadly line actually are in line in that with the industry standards. If you look at our US competitors Donna report, and then you money, and so the the best proxy to understand inflows and outflows on a competitive basis is to look at invested assets. And we have been growing in line with our peers, so one can assume that we had the same kind of universe of menu money. In terms of of the competitive, what we what we can offer is really this capability is that we have outside the US that makes us unique. We are the only truly global wealth manager in the war. So he means that we have leading leadership positions in all main markets, not only in the US. We we are a top player, but also in Asia and European Switzerland. So we can bring the expertise of investing globally, and which is very complementary to some of our competitors include will wealth management, then what a lot of investors have been focusing on is what's gonna come from the cost cuts. There was some tweaking around the cost targets today. Just talked to me about that. First of all, how should we interpret them and how others cost cuts gonna come about? Well, the costs are. Four is a function of becoming more efficient. And you know, when you look at our call space one thing is going to stay fairly stable is investment in technology and investment in technologies. Allowing us to take down the rest of the cost of Beijing. The Bank from tobacco around two to three percent a year. But the most important issues that what do we do in those cost savings? We'd we invest for future growth, that's the very important element. Our story is not about cost cutting our stories that combination of efficiency. Now, we manage our resources and how we manage our balance sheet. So the trade off for us sees the frontier of efficiency between capital returns and cost income ratio. Where we are one of the best in the work. A buyback program is running ahead of plan. And you have said today don't confuse one by program with our ambition and potential so through this for me, what is the potential for buybacks. How? Ambitious? Can they get what was the first of all let me clarify that statement because it means that under Swiss stock exchange also we have to declare an an amount and within three years we need to complete the program, and that has nothing to do with the cash flow that we will generate over three or four or five years. So, and you know, we are we are announcing every year. Our ambitions at the beginning of the year. We said we're going to buy five hundred and fifty million we already exceeded that targets as we speak with six hundred and fifty million worth of shares that we was back and in January when we announce our dividend for two thousand eighteen and paid in nineteen we announce our share buyback intentions for two thousand nine hundred that was UBS
Stocks plunge as global growth, U.S. earnings spook investors
"Going back a year ago right now, it was at about nineteen times earnings, basically, your stocks have treaded water pretty close to it over the past year while earnings have grown substantially. So you do have valuations a little bit more on your sides S and P five hundred index down eighty four a drop of three point one percent. The Dow plunged six hundred eight points down two point four percent, NASDAQ down three hundred twenty nine a drop of four point four percent in new. York. Charlie pellett. Bloomberg daybreak Asia. All right. Thirty four minutes past the hour. We update markets every fifteen minutes here on Bloomberg radio. And I'm coming to you live from the Bloomberg interactive brokers studio in Hong Kong and programs. Brought to you by PGN in the search for alpha partner with PGN global investment management. Businesses of prudential financial Inc. Well, Doug
US, Italy and Bloomberg discussed on Bloomberg Daybreak
"Salman, Mexican authorities are rushing to evacuate low lying areas as hurricane willa heads toward landfall along a stretch of the Pacific coast farther, south Mexican officials say there have been twelve deaths related to heavy rains from tropical storm descente in sports in the NFL the giants loss to the falcons and Monday night football twenty three twenty in the NBA the Knicks lost along with the Celtics. The warriors and wizards won. In the NHL the capitals lost in game one of the World Series. Is tonight. The Red Sox host the dodgers global news twenty four hours a day on Aaron at tick tock on Twitter, powered by more than twenty seven hundred journalists and analysts in more than one hundred twenty countries. I'm Michael Barr. This is Bloomberg. Nathan, michael. Thank you five nineteen on Wall Street and live from the Bloomberg interactive brokers studios. This is Bloomberg daybreak and we're joined this morning by Lena Komeda. She's the chief economist at g plus economics. Good to have you on this morning as we continue to watch this global sell off another one this morning. Do you see any economic underpinnings to what's happening this morning? Good morning. Nathan great to be with you. Yes. I do h relate very strongly to the macroeconomic themes that we've been watching this year. And three major themes that. Demento Marcus have changed the sound of the talking about strong years grows and historically either financial conditions with enough to push equity valuations high in the US globally. This is not the case today, and he just a reflection of the sector fundamentals of markets. Trading change twenty eighteen markets and build the return of US rate, volatility, high use weights and a strong US dollar international regime environment, and that's sweet turning to pain trait to market bullets encouraging this kind of diverse can that was driving down equity in the US and Europe and Asia Loa second big geopolitical risk now, filming better. You just have to look at Italy. But also close developments in the US have elections. The US China Malaysia, a trade war. That's getting underway. Finally dynamics basis, basically raising the risk of tuned to a normal economic volatility. We now have the twin issues of rising risk of inflation, overshoot and. Countercyclical gross retrenchment, globally competing, and that is basically a recipe for but you. Ability and higher Marcus volatility going forward. All right, so three broad themes there. But they don't all stand alone. Do the I imagine that they all sort of tie in together. Particularly when you're talking about market volatility and geopolitical risk, I mean is geopolitical risk essentially causing the market volatility. We're seeing I think very much nice can and the key thing as that for the first time in a decade managing down volatility. Financial macroeconomic. He's no longer the main policy focusing coma. Cassette. Instead what we have a twin forces as the fed pushing it rates towards the economy's neutral, basically break even close. He's no longer stimulus is and that easing turn raising the market. Lowering brother Marcus pain, special raising the instituted to the direction of policy risk in the direction of policy risk again for the first time in a decade. No actually dictated by central banks volatility very much in the domain of Joe political risk. And here, I think the risk is the markets. Looking at two thousand eighteen is the peak of the cycle. The peak of that trade where the fickle magic Jews was supporting grace is going to now give way to the results of of what has been an unprecedented debt funded tax cuts late in the cycle. So as pointy nine hundred and gets underway in gross one is to lower levels earnings and no longer rising at the foster rate longest probably going to become more sensitive to the rising cost of debt. So then if if growth continues to slow down as you're arguing here does that affect the rate path that we're going to see from central banks. Could they start to assert themselves? More. I think this is a very critical question. And you're absolutely right. Who's been a key markets, stabilize it in recent years, the so-called policy put oh, the fact that affect would step in whatever there's some kind of. Macroeconomic financial volatility. That increases the risk of this play down. What's different this time around is that the the the bulk of market sort of debating has has happened by price with pricing. Both on the equities in bone side rather than expectations of a much tight aside in the face of weaker economic rice. I think the chances are unless you inflation slowed down next to you. And he's not exactly why that should happen, given they call me is running close to full capacity. Unemployment rate is so no, but the I will actually continue with three more right hikes after December, of course, rate hike this year, so twenty nine hundred and will actually see rates rising above sea percent at the end that we probably really a reinforced if you like the market sensitivity to exultant risks such as political noise or indeed the emerging markets slow down we have less than thirty seconds to go. Leinna. What's the impact? If Europe takes. Unprecedented step of rejecting Italy's budget just quickly. Well, I think that was real real full out. I think the the ultimate school syntax. He's a political noise. But what's really happening is that the market is looking at the standoff between Italy and their pink commission as the beginning of of a you fragmentation. In other words, everything nomination risk is back in that your own government on pricing for the first time since the eurozone crisis. This is the ECB is preparing to stop buying government. Both going to be at the end of this year. We haven't seen that movie enfold yet. I think there was always probably going to be a much higher volatility. All
"bloomberg interactive brokers" Discussed on Bloomberg Radio New York
"Bloomberg interactive brokers studio is the focus has been of course. Unreal. Tell Sears filing for bankruptcy WalMart having their investor meeting. And of course, we want to talk retail chocolate, Sarah halzack, Bloomberg opinion columnist covering the sector. Sarah. I wanna start with WalMart since this occurred. Shares up nearly two percent, and it just sort of interesting in light of some of the struggles at big box retailers. Why is WalMart continuing to show such strength? Well, I think that they have just done a lot of things right on two fronts, both on the brick and mortar friend and the ecommerce front so in stores they've really invested a lot and making sure they're in stock more of the time and that they have better customer service. They were talking in the presentation today about how it's investment in wages and training has meant there worker. Turnover has been reduced quite dramatically, and that seems to be helping them provide better customer service and getting that lifted traffic in their stores, and then they're ecommerce operation is doing better under the leadership of Mark Laurie. The ecommerce operation is expected to grow thirty five percent next fiscal year. Correct. That's correct. And so that will come from a combination of things one thing they've been doing is expanding their marketplace of third party sellers. Math allow Ben to offer a lot more skews a lot more different products. And now the counted for a significant share of the gross the other thing that they're doing is trying to add to their stable of brands one thing, they did very recently. That was interesting they acquired this company called eloquent, which is a plus sized women's apparel retailer a retailer that's really still the white and under served market and moment, he's gonna keep making acquisitions of that nature that should help support that ecommerce growth, so I wanted to figure out well, WalMart benefit from Sears is bankruptcy and just observe put into perspective. Today's game. The shares are still down one and a half percent year to date cure. I think WalMart does stand to gain though, perhaps not immediately. And I think they will less likely gain share from Sears, then from KMart rain and even see more of a bit of overlap of the WalMart and KMart customer is and. Tons of goods that they sell for example, KMart. So does a pretty large business in perishables intrude? And of course, she didn't even see a transfer to WalMart. They're also there's been some research in terms of the store overlap. The overlap in terms of locations. Situations where a WalMart store is a fifteen minute drive. Other KMart store, and there's pretty significant only the second just to clarify K mart is not filing for bankruptcy right yet. No, no. It's part of the whole series. Right. But so that oh, so you're saying that that KMart as a subsidiary is what we're WalMart is going to benefit the most. Exactly, yes. Yes. Who has any KMart's been closing a lot of stores and many of the one hundred forty two store closures as part of the bankruptcy filing. And many of those KMart locations. Sarah. Could you just expand a little bit on these third party agreements that WalMart has put in place because they've got a partnership with advance auto parts, they recently as you said they made that eloquence acquisition. They also bought bare necessities. The launch rate company and they've got a partnership with Metro Goldwyn Mayer content. Interrupted the retail partnerships. I think what they're doing is knowledge that the WalMart brand only resonates with a certain swath of customer. They know that an upscale affluent customers probably not going to respond to the WalMart brand the way they might eloquent or two Benito's, which is another acquisition. They made or to moose jaw an acquisition of the outdoor apparel and good type that they need and what they're trying to do is say a lot of the growth in the ecommerce space is coming from wealthier shoppers. And if we want a piece of that, we need to have a bigger tent, we need to have a different offerings different digital storefronts for them to shop at Sarah. I'd love to switch gears a little bit to figure out who you think will benefit the most from Sirius' bankruptcy. Yeah. So I think the benefit most, unfortunately are probably the ones that are already quite strong. And that's Home Depot. Lowe's and best buy the largest portion of fears business is still in hard lines. And that makes sense, right? That's their legacy craftsman tools Kenmore appliances that was still about half of their total merchandise sales about seven billion dollars worth. And so as many of the stores liquidate, the the ones who are already leaders in those kinds of products appliances electronics, I think they stand to gain. So do you think that the net result of Sears is bankruptcy will be a net positive for the big box department store retailers, or do you think it's sort of a harbinger of what's to come? I think it will be a net positive, but I think it will take a little bit of time to get there. So for example, if fears does end up completely liquidating, which looks like a very real possibility. It will have these liquidation sales Ray where it's going to be selling stuff for rock bottom prices, and sometimes that can create some short-term pressure for these retailers, and that might be a little bit difficult to shoulder. We saw that for example of Dick's sporting goods and sports authority where in that brief window or sports authority was going out of business is a little tougher next. So we could see that again. But ultimately, I think the dynamic playing out in retail for quite some time now is a sorting into winners and losers, and I think the disappearance of here's just further exacerbates that it creates potential for the ones that are winning to win even more just give you twenty seconds, Sarah. They have a agreement with Lord and Taylor. To offer premium brands at WalMart dot com at what point does this become too confusing for the shopper. That's a good question. And that's one of the more puzzling move they they've done so far. I think we just need more time to see on to see if the board and Taylor customer is willing to come to the WalMart site for those products, or whether it makes sense to have it as a standalone vertical. It's just all part of the experimentation that they're doing. Well, Don, thanks very much for being with us. Sarah, halzack, Bloomberg opinion columnist. She's an expert on everything having to do with retail shares of WalMart. They are higher by nearly two percent though. They are down three percent. So far this year. Yeah. On a price basis. It's really interesting to see things shake out. Just you know amid all of the retail sales sort of digging tipping down at at big box retailers. Just to see the climb at latronic or online marketplaces. Click. Click click and by all right? Let's go to our ninety nine one studios in Washington DC where Nathan Hager has world and national headlines, Nathan Pama high level. Turkish officials says police have found certain evidence in his words that Saudi journalist Jamal kashogi was killed inside the consulate in Istanbul to we two weeks ago. The officials spoke with the Associated Press on condition of anonymity. As secretary of state, Mike Pompeo met today with the Saudi King and crown prince in Riyadh Republican Marco Rubio sits on the Senate Foreign Relations committee. He says if the Saudis are found to be at fault would really blow apart. Our Middle Eastern strategy. And it's something we have to address from human rights standpoint. Just because a country we're working with it. It doesn't mean the US can can shoulder and say, well, the nothing happen here. We'll CNN and other outlets reporting. Saudi Arabia could say kashogi was killed in a botched interrogation. President. Trump says king salmon gave him a strong denial when they spoke yesterday while the president appears open to that denial. He is doubling down on a different controversy over Senator Elizabeth Warren's lineage a day after the Massachusetts Democrat released a DNA tests showing she has distant American Indian ancestry. The president tweeted about it three times this morning. Referring to Warren is Pocahontas calling the Stanford professors DNA test bogus with the midterm election. Just three weeks away. Now. Senate majority leader Mitch McConnell tells Bloomberg Republicans arriving a wave of momentum over the break Cavanaugh fights like a shot of adrenaline to Republican voters, and hopefully we can match the Democrats and enthusiasm going into this midterm election. Connell says the fight over control the. It's coming down to just a handful of states. Global news twenty four hours a day on air and talk on Twitter, powered by more than twenty seven hundred journalists and analysts in more than.