vimarsana.com

Government crisis. Lets get a check of how u. S. Markets are trading thanks to with julie hyman. We are getting in my skin Interest Rate decision this hour. Julie it seems the central bank of mexico has raised rates in mexico by 25 basis points. That is at least something of a surprise. 19 out of the 32 economists in our survey were expecting the bank to remain at 6. 5 . Instead, we got that 25 basis point increase in rates care. We are looking at how the peso has done since the u. S. Election. It looks like it might be extending losses in todays session. Why dont we call it up on the bloomberg, and take a look at what is happening at this moment. Look at my bloomberg here. We are seeing a little bit of a leg lower in the u. S. Dollar versus the peso. That is how it is priced here. We already had been seen a down fort of a come the u. S. Dollar as the u. S. Government gave formal notice of a renegotiation of nafta, which will occur, present become over the next couple of months. A little bit of a pop here in the mexican currency versus the u. S. Dollar. Getting back to u. S. Stocks, and if you want to continue to follow along with Mexican Central Bank position, you can look at the bloomberg. We are at the highs of the session, following the selloff yesterday, as we see the comeback today. Some of the trading recently, of course, has had to do with earnings. It is one of the things that has been underpinning the really we have seen in u. S. Markets. Today you have a big one up, and a big one down actually, it looks like we are skipping ahead here, so why dont i tell you what is going on with sprint and tmobile . We had an executive of tmobile, the cfo, speaking at an Investor Conference today, talking about the logic of combining sprint and tmobile. So, both of those stocks have been on the rise. I guess we are having a little technical difficult he with the rest of the graphics, so i will send it back over to you guys. Julia thanks so much, julie, and apologies for the charts there. Lets head out to the salt conference in las vegas as investors continue to discuss the headlines in washington is it the end of the trump bump . Erik schatzker has been there all week for us. Take it away what we have coming up question Erik Schatzker coming up . Erik schatzker i am not sure were going to answer the question is this the end of the trump bump with crisp a cello, cello, but i want to talk about spectrum. Spectrum is hot. But before we get to spectrum, do you have any thoughts on the trump bump . Chris i think it will continue. Erik secondon, question, why . Chris there has been press that him, andeen great for he has not been a good job of getting around that. I think getting things back on track will create that uplift. Are fundamentally you optimistic that what we have talked about, the issues and investigation, the campaign team, the russians that stuff is going to go away . Chris i can. It is hard for me to believe he colluded with the russians, i think anything is possible, but i think its a campfire ghost story. Erik quite honestly, i think the rest of us hope it is a campfire ghost story as well. Chris, lets talk about spectrum. Verizon is hot because and the deal to buy Straight Path. And not just for 3. 1 billion, but 3. 1 billion is a great deal more than it was worth before the talks began. Any, doesgree, if that reset the valuation for any wireless spectrum assets, because you are a holder . Chris we are a holder. The Straight Path spectrum is referred to as millimeter weight spectrum, which is high on the dial, so to speak. It is north of 24,000 megahertz, where most of the spectrum use for cellular phones is in the 600 to 2500 megahertz. It is a different type of spectrum it is line of sight spectrum. It has tremendous uses for small cell networks. The Technology Gets up to speed, it can be very interesting. It will not really at least the Technology Today does not exist for it to be usable for cellular. Erik can we extrapolate or straightline valuation comparisons between what Straight Path sold for and anything else, for example, globalstar, which is in place right now . Chris so, yes, and no. First i would say verizon and Everybody Knows the amount of spectrum they hold versus everybody else. They have half the spectrum that sprint does, and are clearly in a catch up mode to build out there special inventory. Erik at t wanted it, too. Chris at t wanted it. At t has about 50 more spectrum than verizon, so maybe they needed a little less, but the extra couple billion they do not find their way clear of spending that. The difference is that globalstar spectrum, which is 2. 4, right below sprints sayest block of 2. 5, when i 2. 4 2400 that is like a wifi spectrum. When you use wifi in your home, that is what you are using. The unique thing about that, it is global. They do not thoroughly have licenses everywhere. That patent is, sort of, getting clear. For the Global Player community an amazon10 player, that could be instant spec and for them to have. Erik or other companies that talk about doing networking globally google for the double, facebook, for example. Chris all of those. And they are in a channel channel 14, which is a different channel then we all now use for wifi. To the extent that wifi gets more congested and slows down your usability, they will have their own channel. In the future, it will be very valuable. Erik you have been in and out of globalstar. The stock is trading at 2. 32 right now. Which you make a venture of what it should be worth question mark chris worth . Chris quite a bit more. It is a timing issue. One of the great things Straight Path is an example, a month sooner, it would have traded for 40 a share. It is really getting it at the right time, and having more than one buyer. I think it was a lastsecond type of thing for straight past to introduce a path to introduce Straight Path to introduce a second or third buyer. And you have a little bit of a frenzy. Erik talk about the spectrum you hold, and whether you have been approached about that from a buyer why are you not turning them into cash at a time when spectrum is clearly valuable . Chris a lot of the spectrum we hold we get from acquiring companies from bankruptcy, and the spectrum has things that need to be done to make it commercially salable. It might be in an area that is not being used commercially. It might be part of a bigger ban right now there might be enough for today. The key to understand about spectrum is it is like oceanfront property. There is only so much of it, and once it is all gone, it is all gone. I believe we are starting to see, and Straight Path is a perfect example a little bit of concern from the carriers about how much they will need in the future. We use so much more spectrum today than we used to use. There is an article in the paper appt the amount of usage usage 900 billion hours globally. That will not go down in that requires more spectrum. Erik does verizon know what you have . Chris possibly. Erik possibly. How long will it take until you are in a position to monetize this stuff . Chris i think over the next 24 month we will see a lot of action. We cannot tell you fairly want to be the first to move. Every piece that trades, though, means there is that much less to go. Again, it is an asset there is no more of. It is supply and demand in a different way. Not like oil, where you produce more oil, you drop your production. This is it. That isabout another stock were you have a stake. Is there a deal risk their . Chris there is big deal risk their people we are significant bond holder as well, and they are looking, basically, to buy the company at a very big discount. There is a lot of discussion backandforth, and right now there is not an agreement on an agenda. Erik what do you think happens . Chris a great question if softbank wants to pay a little more money, they will get it. That is what it comes down to. Erik erik as a holder, you hope they do. Chris yes, we have a price we are willing to tender. Erik that is chris welcome we have lots of different tranches. Erik thanks for taking some time out. He is the founder and ceo of s olus alternative asset management. Much more to come, including anthony scaramouche. Julia coming up later, dont miss an interview with jim chen off at 3 30 p. M. Eastern time. In the meantime went scarlet scarlet in the meantime lets get you a check on first word news with mark barton. Mark and York City Fire Department Confirms one person is dead and 24 others were injured after a car crashed into pedestrians in times square today. The driver is interested in being tested for alcohol. The new York City Police commissioner told reporters the driver had prior arrests for drug driving. Please do not suspect they linked to terrorism, but as a precaution, the bomb squad did check out that vehicle. President trump causes a single greatest witchhunt of a politician in american history. About theent tweeted naming of a special counsel to investigate possible links between his campaign in russia. His tweet said there was never a special counsel to investigate the clinton campaign, or the obama administration, despite what the president called all of the legal acts that took place the legal acts that took place. The fbi has named Robert Mueller namedert mueller has been to investigate officials. Has ir an iran has replied to sanchez with sanctions of their own as they vote on a new president tomorrow. The incumbent, moderate hassan rouhani, Health Orchestra the nuclear deal. The United Nations special envoy for serious as discussions have begun on a constitutional process as part of mediation efforts to end the sixyear civil war. The office says there will be expertlevel meeting with representatives of the Syrian Government delegation. The Syrian Opposition is asking for clarification on 13 points contained in the proposal. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. I am mark crumpton. This is bloomberg. Scarlet do so much. Coming up, public and senator mike rounds, republican senator mike rounds, a member of the Senate Banking committee, takes away his the shares is take away. What happens to tax reform . This is bloomberg. Julia scarlet this is Bloomberg Markets. Im scarlet fu. Julia i am julia chatterley. Scarlet Steve Mnuchin gave his first testimony since being named treasury secretary. Here is what he said about the president s tax plan. thetary Steve Mnuchin president does believe we need to create Economic Growth and we are willing to have lower tax revenues in the shortterm if that will create Economic Growth. As i have said, the difference between 2 and 3 gdp is roughly 2 trillion over a 10year third period of time. It is a lot of money, and Economic Growth will help us deal with a lot of other complicated issues we have. Scarlet that was his direct response to a question from republican senator my grounds from south dakota. He joins us now. Senator around, think you for speaking with us. We know you are in favor of a balanced budget. I you comfortable with the secretarys assertion that any tax plan should be paid for with Economic Growth . Sen. Rounds yes, in fact i was pleased to hear they were not going to try to do a neutral one where the deductions were being taken away and rates were being lowered. We really do need additional dollars coming back into the economy if we are going to make it grow. The rate coming down is very important. We have to be competitive. I like the idea of having as he says, a business rate reduction, not just the corporate rate reduction. That applies to a lot of people with subchapter s and Partnership Organizations as well. That was a positive move in response to one of my questions i think we ought to consider a flatout, across the board down payment on tax reform and relief. My suggestion was lets take two points off every single tax rates and see what happens. If we do that, that would put money back into the economy, and it take our time and work through the 74,000 pages that, in some cases, add onto the burden in terms of adding taxes on, but in some cases it taketh away the tax burden as well. Lets be very careful to do tax supplication that we do not add simplification that we do not add tax burdens to the average joe as well. Cuts the we do the Tax Administration is talking about, various analysts have looked at the sunset over a 10year horizon, rates will have to come up within three years to balance it if you cannot agree in the senate. How is this going to happen . Sen. Rounds first of all, i think it is a game that is played and it has been played for years you do what you need to do in the near term and say you will promise it, do Something Different 7, 8, 9 years down the road. What i want to do is see something happen that john kennedy did, Ronald Reagan did in reagans case, clearly it works. We have to rebuild the economy. We have a one trying to deficit we are facing next year. Right now, we only vote on 28 of the budget can we vote on 1. 1 of a four trillion dollar budget. We will never fix the mess until we start voting on the entire budget and manage the entire budget. Until we build this economy, we cannot cut our way out of the mess were in. You have to build the economy, and one way to do it is get rid of the regulatory mess we have out there which is shutting down Economic Growth, and second of all, allowing the American Public dollars they can reinvest into business again. Scarlet that is something our audience is waiting to get details on anything to spur the economy. The white house in the meantime is dealing with the fallout from the different russian investigations. We know rod rosenstein, the Deputy Attorney general is going to give a briefing to senators. What you want to you from the Deputy Attorney general when he testifies today . Sen. Rounds as a matter fact, that is exactly where i go as soon as i leave this interview. When we want to hear is basically the facts here is the plan, here is the plan to work through this process. We think it is a good step for the Justice Department one we want to see the Justice Department consider, but we wanted them to do it we did not want to dictate to them. We believe in the regular processes. This sense a message to the American Public that these institutions are trying to do the right thing whether it be the sound Senate Intelligence committee, the Judiciary Committee, or the fbi working with the Justice Department at all our sincere in answering questions. In this case, having an independent counsel stepped in and try to determine as best they can whether or not there is anything out there that would require further prosecution is a good move, and as long as we have the confidence of the American People, that is when you help the Business Environment here as well, and Public Confidence in washington, d. C. , and we will take all the help we can get on that issue. Scarlet speaking of julia speaking of confidence, are you 100 confident that donald trump will be vindicated, found not guilty of any allegations here . Sen. Rounds theres actually no evidence of collusion between mr. Trump, his campaign, and the russian government. That is the message we have received, but we are also saying we will follow this thing out. If there are issues we will follow through and find out, were not going to take preconceived notions, but we will do the best we can to investigate, follow every single lead so that the American People have confidence that the final determination made is one that can be justified. I am hopeful, optimistic that we will find out exactly that. When you have a question of confidence, lets get to the bottom of it lets not stand up and make promises either way until you get all the facts. If we have to dig deeper, we will dig deeper. Scarlet that may take time. In the meantime, senator, how concerned are you that the republicans have limited political capital, and it is being squandered on addressing crises that emerge daily . Sen. Rounds you deal with it. Right now in the senate we are working three days out of the week that we are here in an hour and a half session with every type Republican Senate talking about health care and the direction we are going. I think were making progress. Were not putting a timeline on it, but i think were going to come up with a process in making people are going to feel good about when we are all done. The same with tax relief. The actual operations of the senate are not being impeded with this investigation. It is being handled through regular order, the Judiciary Committee and the assigned select committee on intelligence. That is the way the process should work it allows the get of us to go about and our Business Done of trying to build this economy once again. Rounds, senator mike thanks much do we will be following President Trumps First International trip. Ahead of that, david gura will have an interview with the nato attorney general. From new york, this is bloomberg. This is Bloomberg Markets. I am scarlet fu. Julia and i am julia chatterley. Time for the Bloomberg Business flash, a look at some of the biggest business stories in the news right now. Credit suisse is ruling out significant increases in risktaking within its Global Market division. The ceo noted the units strong firstquarter performance, but has no plans to raise limit on risks and that it in the assets or leverage exposure. The swiss bank is in its second year of reshaping its business model. Shares of Athena Health jumping paul singeray after of Elliott Management reported a 9. 2 stake in the Online Medical billing provider. He says elliott says shares are undervalued and will propose changes to the board, policy, and even a potential sale. In china, and some financial will continue to invest in Internet Financial Services around the web. It is controlled by alibaba millionaire jack ma and is trying to boost offshore revenues. That is your business flash update. Scarlet still ahead, we have the commodities close, and some Agricultural Commodities are getting hit hard, including big drops in soybeans and coffee. From new york, this is bloomberg. Ive spent my life planting a sizesix, nonslip shoe into that door. On this side, i want my customers to relax and enjoy themselves. But these days its phones before forks. They want wifi out here. But behind that door, i need a private connection for my business. Wifi pro from comcast business. Public wifi for your customers. Private wifi for your business. Strong and secure. Good for a door. And a network. Comcast business. Built for security. Built for business. The shlike a bald penguin. How do i look . [ laughing ] show me the Billboard Music awards. Show me top artist. Show me the top hot 100 artist. They give awards for being hot and 100 years old . Well take 2 [ laughing ] xfinity x1 gives you exclusive access to the best of the Billboard Music awards just by using your voice. The Billboard Music awards. Sunday, may 21st eight seven central only on abc. Julia scarlet from bloomberg World Headquarters in midtown manhattan, this is Bloomberg Markets get im scarlet fu could we have Commodity Markets closing in new york, so lets look the big movers. We begin with crude oil up today, but still cannot get past the 50 point, or even to it. Most opec members will back an extension of production cuts. They help to arrays and other decline in crude. When you look at gold, dipping a big today, by 9 10 of 1 , at session lows. Investors and bracing risks after yesterdays selloff. In the caps off commodities sugar, soybeans, and coffee, all declining today, getting caught up in the criminal political turmoil surrounding brazils president. The currency is falling today. Some concerns about what happens next in the country. Lets get you a check of the headlines meantime on bloomberg first word news. Mark crumpton. Mark several white house advisers have reportedly urged President Trump to hire an experienced outside lawyer to help him deal with the growing controversy over whether his campaign had ties to russia according to New York Times quoting several people briefed on the conversations. The times says the recommendations came even before a special counsel was named wednesday to lead the investigation into any collusion between the trump president ial campaign and russian officials. The Russian Foreign minister sergei lever off his laughing off reports suggesting President Trump shared sensitive intelligence with him regarding Terror Threats involving laptops on planes. He spoke in cyprus, and said he did not understand what the secret was since the u. S. Introduced a ban on laptops on airlines from some middle Eastern Countries two months ago. The u. S. Treasury secretary Steven Mnuchin gave details about a potential tax reform plan and how the Trump Administration intends to fund it. Mnuchin spoke to lawmakers as it at a Senate Banking committee hearing. any plan wechin put forward we believe should be paid for with Economic Growth. Now, i am concerned as to whether some of the models will attribute enough Growth Growth in dynamic scoring, but when we present the details, we will present how it should be paid for. Mark the secretary also informed lawmakers that breaking up wall street breaks would be banks would be a mistake, saying it would have an impact on the economy. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. I am mark crumpton. This is bloomberg. Julia . Julia thanks so much. Lets go to las vegas and the salt conference were top investors cannot avoid discussing President Trump amid other pressing issues. Erik schatzker is standing by with a man who started it all. Erik julia, that would be none other than anthony scare emoji the man that started not just sky bridge capital, but also the salt conference. Anthony, great to see you. Anthony great to see you. You did a great job with dr. Bernanke yesterday. It was an honest to speak to the man, i like to say, save the world. It wont surprise you that i would lets talk about the president. He, in a tweet today described the pressure he is facing as a witch hunt, or is this the Fourth Estate Holding Public officials accountable . Anthony i think it is a witchhunt. Think the administration could be doing a better job of softening the antagonism with the press, but i think that the president has made a reasonably Fair Assessment that most of the press is biased against him. Research thing that came out that said 80 of the stories on the president and the administration are negative, and if it was 50 , you would say there is less media buys, but at 88 , he is a little upset about that, and he has justification. My personal opinion is soften up with the press. I dont get great press sometimes. You have to take it like a man. When i dont get good press, i like to hold a journalist accountable. Erik of course, even as i would expect. Anthony even bloomberg journalists. Erik i am aware of that. People see you as a surrogate of the president. Is it getting harder to be a surrogate of the president . Anthony absolutely not. I think he has the right ideas. You might have heard me speak yesterday. There is a stomach crisis as it relates to income equality and depress rages wages. The check the president is a champion of that. People may like him or dislike him. I certainly like him. He is a guy that can prosecute that agenda right now in 2017. Whether you are democrat, republican i dont care who you are. He is our president. We needed to succeed and we have to figure out a way to get the right policies in place so those two can do well as well. Said in those remarks anthony i am doing well look at your shot antithe shirt and tie to medication. You are your shirt and tie combination. You are doing well. I am doing well, but we have to focus on those doing less well than us. Erik you said you were offered a job and administration, but the job did not materialize . Anthony Reince Priebus made the offer to be on the 26th floor of trump tower. A written offer. Pursuant to that, i sold my business. It didnt materialize. Someone would have to ask the administration or Reince Priebus as to why. Erik somebody, i assume, give you an explanation. Anthony it was reported in the paper that my sail to the chinese give them a pause. If it was an offer and acceptance, it was politically taken away from it. It was not ethically taken away from it. Erik i wasnt suggesting that. Anthony i understand, but some people did in the media. That wasnt the case. I used one of our friends greg fleming to sell the business. Everything was done fairly and appropriately, but this is political. Erik hang on a second that been the case, i know some thing about you. I know that you have a code of conduct, honor is important to you. Your word is your word and you expect the same from other people. If someone breaks a promise, if priebus wasd reince acting on behalf of the president here, how do you feel as loyal today as you did then . That does not fit with anthonys code of conduct . Anthony that is a very good question, and unfortunately the reality of the world is the Political Landscape is business different from the business landscape. If you when i enter into a contract, there is a level of detrimental reliance. In the political world you serve at the discretion of the president and his staff. For whatever political reason they made the decision to not have that job materialize, that is their discretion. What i said yesterday i hold true. I take it like a man. I am ok with it. Mi super happy with it . Of course not. I am disappointed. I sold my business in order to serve the president , but in a political situation you have to recognize there are vagaries outside of your control, and there are vagaries that are on businesslike. If you sign a contract with bloomberg to perform on this network, you are expecting them to hold themselves to it. And political world, it is different. It would be a shame to be a whiner or a complainer. I am a man up sort of guy. You see and are aware of everything we see and are aware of and possibly more. What would it take for you to lose faith in or loyalty to the president . Anthony that is a really good question. Whatever that is, i have not seen it yet. It is one of those theoretical questions. I think where people start to lose faith is based on intelligence. So, i think you can make a lot of mistakes, and clearly, the american presidency could be arguing the most stressful is the most powerful job in the world. It could also be the most stressful. Mistaken inthat are orientation, i think we have to give him slack for. Change intentions and i dont want to say mr. Trump, because i believe his intentions are pure and he has good intentions, but if someone was sitting in that seat and that was malevolent or had bad intentions, i think the reasonable course of action than would be to change course and go against that person, but the president i traveled with him on the campaign. I spent countless hours with him at trump tower. He is a very good person. This is the one thing i find frustrating and he finds frustrating that his message is getting distorted through the media prism. He is less ideological than most other people in the media think. You, sort of know that. Erik anthony, im afraid we have to leave it there. , this Anthony Scaramucci is his show. Jim chanos is coming up shortly. I will speak to him not too long from now. Julia another interview not to miss. Written work. Thank you. Great work. Thank you. Scarlet they were talking about mediasas, and the bias, i agree with that but it is biased toward conflict and tension. Julia i can give you the International Perspective the overarching perspective is the media is leftleaning, that there are given a bunch of ammunition to throw around. That is a good point. Scarlet speaking of President Trump, it is true that running the country is not the same as running a company, but if america were a company, would worship President Trump be kept on as a ceo . John micklethwait wrote forget about ideology, political agenda, or whether you voted for him. Judge him on whether he has been a competent executive could would you leave him in charge, him additionalnt would you be calling an emergency board meeting. We are joined by megan murphy. Megan this is not one that press made up in terms of how he wanted to frame himself. I think it is one of the fairest measures to look at him. He closed himself as a president ceo. When we look back and peeled back what makes a successful ceo, leader of a company, there are several things forming a strong team around you. Having a very disciplined munication strategy making sure you deliver on the things you say you are going to deliver on, and most importantly, not being caught out when you say things that are easy to disprove or are not true. If we look at political metric, the slate of competence, he has not really got the job done in that sense, even amid these scandals, many of them selfinflicted as well. Julia what has he gone right, megan . Are successes in terms of the supreme court, keeping his base on board. You have to look at the seismic week we have had, and we still have it up and lawmakers that paul ryan, mitch mcconnell, still backing him. We cannot forget just how pervasive this belief is that with a beloved and held congress and a republican held white house, you should be able to advance the kind of agenda that is essential to republican ideology tax reform, deregulation, something on Immigration Health care. They see him with a hope of getting some of that done. Scarlet some of argued he has the international front, north korea, syria, china. What i found a great metaphor in the article was comparing our allies as customers or suppliers looking at it that way. It was a fantastic prism. Megan i think you are right, but to truly on syria. When we look back at that moment of toughening our stance and launching the offensive that we did. That was something that was controversial during obamas tenure, and use all the support he got from people like john kerry, even Hillary Clinton during that event. On the flipside, there are the ties to russia, which is there is influence there, collusion foreign leaders are looking to putin himself cracking jokes about the schizophrenia of american politics, the inability to travel a 24hour even a onehour period without some jawdropping story, as we have seen over the last seven to 10 days, and that is not appear to be stopping as he has for this highstakes foreign trip. Julia very quickly, Anthony Scaramucci just said we have to look at his intentions. He has. Intentions here. Does that matter whether you are a president or a ceo if youre heart is in the right place . Cut him some slack is what anthony said. Megan he can look at what paul ryan said, they will be judged by their megan people and who solve their problems. People do not care about your intentions, but whether their life is getting an easier under a Trump Administration. Julia great to chat with you. Megan murphy. Scarlet s brazils political brazils political crisis is deepening. We would bring you the latest on these allegations against the president , michel temer. This is bloomberg. Julia this is Bloomberg Markets. I am julia chatterley. Scarlet im scarlet fu. Lets head to julie hyman for the sector spider report. Im looking at Consumer Discretionary stocks, one of the best performing groups snapping back from the declines yesterday. It is a mixed bag as to why it is up. If you look at the big movers we see with in etf, there are Different Reasons as to why. 7 ,ax, for cap, which is up wedbush is updating the stock to an outperform, saying there is less creditrelated risk related to the company. That is why those stores are getting a lift. Elle brands came out with earnings that beat estimates. Analysts were mixed on the quarter, pointing to sales that are still weak. Advance auto parts, not a particular reason behind the game gained. Perhaps related to what is going on with carmax. You have been recent figures coming out as to the rising cruiseship passengers in china in particular. Elsewhere, however, there is weakness within retail. As we have seen recently related to earnings as well. Gas is out with his numbers after the close of trading. Ralph lauren reported this morning, on the one hand, earnings were strong at ralph lauren as it is trying to reduce discounting. On the other, kabul sales still fell by 11 comparable sales still fell by 11 . We have been watching the situation in brazil. Companies that have exposure in latin america have been weak. Whirlpool is one example. It is down 2. 5 . 50 of sales come from latin america. We are seeing Companies Like that get hit today. Julia Political Drama is back in time in brazil. President michel temer is embroiled in a Corruption Scandal after taking over from impeached president dilma rousseff. Its expected to give a speech around 3 00 p. M. Eastern. Brazilian stocks and the real are plunging as statecontrolled petra dropped by the most in six months. We are joined by the Sao Paulo Bureau chief for bloomberg chiefs news. The government has already put out a statement denying these allegations. What more can president michel temer say today what are you expecting . Allt has been speculation day long denied a couple of hours after the news broke yesterday, accusing him of approving a bride to support the former House Speaker who is in jail. He called an emergency meeting in brasilia, gathered most of his ministers, cabinet, put out a statement vehemently denying he said anything improper and any wrongdoing. Now, were waiting for him to speak. As you said, it should start in a few minutes, and it has been a guessing game of what his speech is going to be. Scarlet red, and one thing i want to make clear is with about a report of a recorded testimony. Has anyone actually heard the recording . No, no one has heard the recording. The audio has not released, and the newspaper did not release a full transcript of it. It released a couple of sentences of what michel temer allegedly said, and what another lawmaker allegedly said, but we have not seen anything. Global also released pictures of what apparently were money drops being made by these Companies Executives to aids of these mer,ticians, including te but nobody has really verified those yet. Julia c. can you explain the man at the center of this investigation the former House Speaker who was allegedly receiving these payments just how politically dangerous to you think this man is in terms of the political secrets that he, perhaps, holds . Julia l. this has been a very carwashestigation can has been going on for more than three years, and there are many politicians cited in it. A lot of them in jail. Some of them already been investigated and being investigated, or in the process of being investigated. He was very powerful, and is from temers party. He wasn he fell when a most from congress and he was jailed, there was a lot of rumor everywhere that he would plea bargain, which he has not yet. You mention this has been a longrunning scandal. So many are caught up in it. If michel temer has to step down, a year after taking over from dilma rousseff, is anyone in the brazilian government not connected to this carwash scandal in any way . Julia l. it is hard to say what would happen if temer, which we dont know is happening, or could happen, the president of the council would take over and aft call elections funding in the congress would call elections. You have to do that for 30 days, this president would be in power until next year when we have president ial elections in the second half. Julia c. great to check with you. Te, bloomberga lei news Sao Paulo Bureau chief. Scarlet and a programming note that tomorrow at 8 30 a. M. Eastern time, 1 30 p. M. In london, we have an exclusive interview with the nato secretary general. Tv,can catch that live on or the radio, or on bloomberg. Com it tv. This is bloomberg. Julia this is Bloomberg Markets. I am julia chatterley. Scarlet i am scarlet fu. Time for a look at the Bloomberg Business flash. Calls ireland facing calls to delay its sale in allied irish banks. Finance irelands minister says Market Conditions should determine times for the wanted postponed. Former executives at Deutsche Bank will help pay for fines imposed on the lender for pass misconduct past misconduct. In general, Deutsche Bank completed a 7. 2 billion settlement with the u. S. Government over its handling of mortgagebacked securities. Ashton martin may consider a london ipo as early as next year according to people familiar with the matter, who say the british automaker wants to capitalize on the success of ferraris 2016 listing. A similar valuation model could tag the centuryold carmaker at 3 billion. That is your business flash object. Julia coming up, we speak exclusively to entertainment ceo in his first interview since taking the helm at the comedy. That is next. This is bloomberg. Its 3 00 p. M. In new york and 8 00 p. M. In london. Scarlet welcome to Bloomberg Markets. We are live in bloomberg headquarters in new york. Over the next hour, here are the top stories were covering on the bloomberg and around the world. In markets, stocks rebounding from the worst cello off selloff of the year. Economic data helping to restore asestor confidence, even political turmoil threatens the trump agenda. Walmart reporting online sales grew at the fastest pace in at least five years. A look at the retailers ambitious internet expansion plans as it tries to compete with amazon. In corporate news, emerging from bankruptcy and ready to talk business. The company ceo joins us for an exclusive interview. We are one hour from the close of trading. Lets check in on the markets with julie hyman. Julie not just green, but greener. Stocks bouncing back from the declines at happen yesterday. Its not unusual to see this kind of bounce back after the magnitude of losses yesterday but its interesting to see it strengthen throughout the day. Volume is not quite as strong as yesterday but still above the 20 day average. At the s p 500 today, very different from yesterday. Fell, madehe s p several attempts to bounce off the lows but did not make it. Its the opposite today. Stocks continue to make new highs here, now up by about. 6 going into the close. Stocks artists it yesterday are coming back today, notably vtec stocks, most of them near record highs and then fell back yesterday, now going back up today. Facebook and amazon on the list as well. Walmart one of the other stocks contributing to the gains today. Sales rising for the 11th straight quarter and the Online Business is strengthening. On the flipside, the biggest drag on the s p is cisco after that companys forecast missed estimate. So little bit of push and pull. Whats going on in the treasury tif. Et, specifically with you can see it going up a little on theay, up about. 9 year. There was an 11 billion auction on 10 year tifs today. Socalled nondirect bidders grab the largest share that they ever have. We have a chart that shows that here. You have the indirect dinners here in purple. The primary dealers in blue, direct bidders in green. Asr tifsption investors to watch the fed are telling us today, theres a story out on the bloomberg talking about this, that investors are largely still expecting the fed to remain on track with raising rates gradually throughout the remainder of the year. Scarlet Caesars Entertainment is holding its analyst a las vegas as the aiming company repairs to emerge from bankruptcy. David westin is standing by with the ceo. This is special because we have the ceo of Caesars Entertainment. He doesnt get anybody interview since he came to caesars over two years ago. Its good to have you here. As we said in the introduction, youve been going through a restructuring of your company ever century took over. Tell us where you are in that restructuring. What stands between you and getting that large portion of your operations out of bankruptcy . One factor is just having all the regulators approved the Restructuring Plan which was not approved by the judge or gender 17. We need to have the finalize their comments on a restructuring and once both of those dates are past, we will be emerging. Were expecting that by the end of the Third Quarter we will have emerged from bankruptcy. Are you position so you can make a successful business of this . Guest. Weve actually had an outstanding two years. Our ebitda is up 756 million, about an 800 basis points margin improvement over the last two years. Weve taken a share on the strip and Employee Satisfaction and Customer Satisfaction or both at an alltime high. The Management Team has done a really great job pulling together over the last couple of years and getting ready to emerge. Because we have a lot of growth plans weve not been able to act on because of the complicated structure. We will be else do a lot of Development Projects around the world as well as m a activity. Where are the principal areas of growth you are looking forward to . Is it geographic . We have projects right now in brazil and those licenses are issued. Were looking at japan, toronto, those are projects that are ready to be activated. On the strip we have a lot of real estate that is underutilized, its just blank. Theres about a 50 acre parcel behind valleys and every acre , and seven acres run in front of caesars palace. We have plans to basically develop all of that very valuable center strip property as soon as we emerge. So those assets will have very high return and low risk profile. David what about macau . About growth in macau. Are you planning on trying to get back in there . I think caesars tried to get in there before you were there and didnt. Cow is something we strategically have never in a. Certainly we would have loved to been there. We look at being in asia through other projects that we have, we have a korean license that we will develop in korea. Japan, they really like us and are very interested in us, being one of their license holders, and the Foreign Ministers like the fact that we have not been in macau because we have to be very regulatory and compliant in jurisdictions here in the United States and they love our compliance strength and the fact that were a benchmark on compliance issues. We think and we have a really good shot at japan, just given the fact that we are not in macau. Pleasantly surprised on that front. Your numbersg at last year, it looks like 50 of your revenue came out of gaming. When you get past that, will the balance of your company look different . Will you be more of a Real Estate Company then you are now . The way the company will be structured post emergence is the same. We will have a restructure and we will be a property company. Essentially we still on the brands. We are the license holders and the structure provides an effective way for us develop around the world and do m a. It provides very good liquidity for us. We will have lots of liquidity and in terms of where we get our revenues, we are growing very fast right now in the hotel into the business. On the strip, you actually make more money on the Hotel Business from a margin standpoint than you do the gaming business. We like the fact that were growing very fast. Our average daily rate on rooms has grown about 11 over the last couple of years. That compares to the strip average of 5 6 . Ofcontinue to renovate a lot those rooms. We are doing 7000 rooms this year and up until 2020, we will continue to get about 90 of those rooms renovated. We have a bet 4000 rooms on the strip today. Las vegas has very good dynamics. Post bankruptcy, 60 of our ebitda will come directly from los angeles from las vegas. Do you see as your principal competitor, and what do you identify as your competitive advantage against that competitor . The most like size competitor would be mgm. On a domestic basis, we are the largest gaming provider in the United States. We have the most number of locations. Our biggest source of leverages the fact that our size allows our total rewards program to be very powerful. Large, our network is so it makes it very hard for other people to compete with that kind of reward program. Its one of the best crm programs in the world so we are heavy in analytics on our customers. Moneye to make a lot of for customer because we concentrate on customers who like to gamble. We feel that is an advantage. They can be turned to the hotel side as well. We think that is a big opportunity for us to continue to grow with our total rewards program. That is one of our key advantages. David just give us a taste, when you look at the millennials, how are you making that play . Millennials, we are obviously trying to engage them digitally and through pdas, mobile. We have a lot of advanced Technology Projects in the works that will launch inside the four walls of casinos today that will engage and activate millennials in a way they want to be engaged and activated. Time to take a lot of our social mobile protocol that we know they enjoy and be able to the softwaret into in the games that were starting to put on the floor. Project called casino of the future that will launch probably within the year. We want to be the first to innovate in gaming by providing new games that are different, more interactive and more skillbased and attract that millennial generation. Believe it or not, millennials roughlyh defeat 56 of them are gamers. Are 34 ofs today the workforce. So we want to attract them, but they have a predisposition to gain anyway, so we like that. David thank you so much, mark. Good of you to spend time with us today. Scarlet lets get you a check of the headlines with mark crumpton. Mark following talks with their mexican counterparts, Rex Tillerson and Homeland Security secretary john kelly both said americans demand for drugs is helping to fuel violence in mexico. Secretary tillerson telling reporters, we americans must own this problem, it is ours. America must also confront the reality that we are the market. But for the seemingly in less demand by addicted users and the successful recruitment of young and vulnerable new users, there would be no market. Tillersonetary continued, but for us, mexico would not have a transnational organized crime problem. House Speaker Paul Ryan says the crises that have plagued the hepresidency have not spoke at a weekly press briefing. Of think its very important that people know we can walk and chew gum at the same time. Drama is not helpful in getting things done, but we are still getting things done, and that is the important point. Figure also says congress is making progress on its 2017 goal for tax reform. U. S. Officials call the Terror Threat posed by Laptop Computers in airline cabins critical, but they have not expanded the ban on the devices to flights coming from europe. Thats after a fourhour meeting with European Union officials in brussels. European authorities are opposed to expanding the ban, saying it may disrupt the aviation system. U. S. Health and Human Services secretary tom price is making his first overseas trip to , where ebola killed more than 4800 people. Secretary prize praised liberia today for its remarkable cooperation on health care issues. He toured a community that was hit hard by the ebola virus in 2014. Global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. I mark crumpton, this is bloomberg. Breakingwe got some news, President Trump saying we are very close to a new fbi director. Joe lieberman is a top pick for that fbi job. Joe lieberman a former senator, democratic senator turned independent senator ran with al gore for the president ial ticket back in 2000. Julia this would be unorthodox because my understanding is the fbi dont typically have politicians running it. This is normally a tenyear term in his 75. Scarlet this is bloomberg. Scarlet this is Bloomberg Markets. If you look at walmart stocks, they are the leader in the dow, having its best day in a year and now at its highs in more than two years. The worlds biggest retailer posting its 11th quarter of gains. Lets look at walmart. Walmart is making serious headway is online fight against amazon. Ecommerce sales gained 69 in the First Quarter. The company cfo saying ecommerce business posted the fastest growth in five years. Healing the growth spurt, the acquisition of jet. Com. Looking to grab a bigger share of shoppers from amazon. Mortars brick and performance in the First Quarter outpaced estimates. Yes comparable sales rose 1. 4 . Target has posted negative samestore sales for four straight quarters. This shows the gap between walmart and target for u. S. Samestore sales. Im just going to interrupt, President Trumps meeting with the president of columbia. Lets listen in now. Its a great honor to have president santos of columbia here. Long discussions today. Columbia has been making great progress but we are working on knocking out the drugs because we have a problem with drugs and you have a very big problem with drugs. We are working very hard and very diligently and we will be spending a lot of time together today and in the future, a lot of time. Mr. President , its an honor to have you with us. Thank you very much. We will be talking about venezuela. We are very close to a net the eye director. What do you think about [indiscernible] President Trump very sad. Thank you all very much. Thank you. Julia that was President Trump there meeting with the colombian president at the white house, saying how pleased he is to meet the president , obviously a lot of the press there were very most focused on asking questions not related to columbia. Obviously the press wanting to talk about the possible next fbi director. It could potentially be Joe Lieberman, donald trump himself suggesting hes the most likely candidate at this moment. Of course we are awaiting a News Conference between the colombian president and President Trump later in the afternoon where im sure there will be much more questions about russia and the fbi. Still ahead, buyers are back in the market as earnings and Economic Data outweigh trauma in washington. We have your market check, next. This is bloomberg. Julia this is Bloomberg Markets. Markets and rebound mode today. Lets get a check of that session with abigail doolittle. Abigail were seeing a nice relief rally for the major averages today after the biggest selloff yesterday of the year. Nice gains to the three major averages. Each putting up their best day of the month of may. Really a pretty good rebound from that selling. The dow transfers are higher today and thats important, up more than the other major ,verages because earlier today we see that the dow was right down to the moving average. Dow transport higher could be seen as the list. If we look at the last two times the dow transport has gone against the 200 day moving average, we see a lot of volatile, choppy trading with some downside around brexit. Back in 2015 the movement below the 200 day moving average, some activity led to a pretty big decline. Dont be surprised if this is not the first or only time we talk about the dow transfer from the 200 day moving average. Are agree that transports less important than they used to be as a leading tell terms of what could be had for the major averages because its a different economy. But one advisor takes a different view. The point she is making, she saying the dow transport is something that still gives her cause. The reason being the dow transport has not been able put in a new sustain high above the last record high back in 2015. Thats marked by this aqua line. The dow transport it put in a new record high but below the high from 2015. The point wheezes nakedness of fact that we have a divergence between the dow and the dow transport and that rocky trading could potentially be bearish ahead. Lets look at the s p 500. Kind of a mixed bag of names that were looking at today including carmax, shares sharply higher on it upgrade, and was citing credit improvement and the firm does see 9 upside share potential. Insight higher after early results from one of the companies cancer drugs that appears to be promising. Jpmorgan is bullish on this. Then a snap that for two of the chip stocks. The snapback rally seems to be one of the phrases to think about for todays trading action. Scarlet abigail, thank you so much. We have some headlines from South Carolina senator lindsey graham. Hes speaking to reporters on capitol hill and saying that this program into the Trump Campaign ties with russia now seems to be a criminal investigation. It seems to be, a criminal investigation. He at that congress possibility to conduct the investigation has been limited. He at separately that Joe Lieberman would be a good choice for the fbi and the president had said earlier that Joe Lieberman is a topic for that job. We dont know how broad ranging this investigation is going to be. Trump has been widely quoted by news agency saying that the special counsel hurts our country terribly. The administration welcomed it yesterday so today it appears donald trump is contradicting his own government statement here. We will have to wait and see what happens. We will keep bringing you the headlines as they cross the bloomberg terminal, but for now, this is bloomberg. So we need tablets installed. With the menu app ready to roll. In 12 weeks. Yeah. The world of fast food is being changed by faster networks. Data, applications, customer experience. Which is why comcast business delivers Consistent Network Performance and speed across all your locations. Fast connections everywhere. Thats how you outmaneuver. Mark its time for first word news. Utah congressman Jason Chaffetz said he will resign on june 30. The republican said in a letter to his constituents that he and his wife have agreed the time has come for us to move on from this part of our life. The statement does not mention the investigation he is overseeing as chairman of the House Oversight committee into President Trump firing of fbi director james comey. He says the reality of having spent more than 1500 nights away from his family over eight years has hit him hard of it before. British Prime Minister theresa may has committed her conservative party to a hard brexit. May outlined the manifesto, promising british voters she would deliver a clean break from the European Union and warned that no deal with the eu was better than a bad one. France convened its cabinet for the first time today, a carefully calibrated balance of 22 figures from the left and the right, half of them women, but there are concerns that president

© 2024 Vimarsana

vimarsana.com © 2020. All Rights Reserved.