Transcripts For BLOOMBERG Bloomberg Markets Americas 2024071

After the judge turned down his bed, assange said he did not understand the proceedings and said the case is not fair because the u. S. Government has unlimited resources while he does not have easy access to his lawyers or documents he needs. Global news 24 hours a day, onair, and tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. Im Mark Crumpton. This is bloomberg. It is one 00 in new york, 6 00 in london, 1 00 in hong kong. Romaine bostick in for vonnie quinn. Welcome to bloomberg markets. From bloomberg World Headquarters in new york, here are the top stories on the bloomberg and from around the world that we are following. U. K. Prime minister Boris Johnson denied a second vote on his brexit deal but there is another crucial vote tomorrow on the divorce plan. Goldman sachs dealing with an unwelcome string of insider charges. Mixing business with politics. Facebook Ceo Mark Zuckerberg privately recommending several hires to Pete Buttigiegs president ial campaign. This as the tech ceo faces attacks from both sides on misinformation, privacy, and election meddling. Kailey leinz is here. Tell us what is going on. Alley the rally continues, three major averages near the highs of the session. The s p 500 above that 3000 level. Tradesm in the market on with President Trump saying he hopes to ink a deal with china next month in chile. Take a look at dow transports. 1. 6 , gaining for a fifth day. If you hop in the terminal, take a look at how transports have performed relative to the broader dow jones. Outperforming for five days in a row, a wide range of outperformance. That index is being led higher by railroads. Csx and Union Pacific up by 3 . Boeing is a big drag on the dow. Down another 3 or so today on some downgrades. More woes for the 737 max. I want to look at tech. 19 of the 20 largest stocks in the nasdaq on friday were lower but we are seeing a rebound today. Apple is up 1. 8 , fresh record. Nvidia and rpc also up. On those oil companies, lets took a look at those. Halliburton out with a Solid Earnings report this morning. Growing its international market. That has to hire peers higher. Getting an upgrade at citigroup on an attractive valuation. Romaine thank you. Lets turn to the u. K. , another blow to Prime Minister johnsons exit plan. John bercow has rejected the government plan or a second vote, saying members of parliament have already debated and voted on the plan. Here with the latest is emma chandra from westminster. Him tonot really expect move forward with this vote today necessarily, but it did appear Boris Johnson was counting on this to further his cause. Right. Oure absolutely we had been expecting the government had wanted another meaningful vote on his brexit deal today. That was denied by the speaker of the house of commons, german or co, saying it was essentially the same question that mps were asked on saturday. He cited Convention Going back just a little historical analysis for you. We will not have that vote tonight. It now means attention moves to the Withdrawal Agreement bill. This is a massive piece of legislation that would allow the brexit deal that was negotiated by Boris Johnson and the eu to become part of u. K. Law. In the last few minutes, you have heard from the leader of the house of commons, jacob reesmogg, a member of Boris Johnsons government, setting out the timetable for that. We understand there will be a vote where they will publish the Withdrawal Agreement bill, and then a vote known as the second reading tomorrow. The government expects to win that. That would be seen as a victory for Boris Johnson and the government. Following on from that would be a programknown as motion. That would allow them to accelerate the process by which this bill would become law. Thinksly, the government they can accelerate that process, and will be able to get all of the relevant legislation passed before the october 31 deadline. Obviously a lot of moving parts but we have heard some relatively positive comments from a lot of the folks on the european side. When you consider some of the praise johnson is getting from the European Union members, what is the main impediment to getting this done . Right. Ou are absolutely a lot of europeans positive, they want this deal to go through. They also want brexit to get done. They dont necessarily want to give another extension. Boris johnson has had to ask the European Union for another extension just in case. Would come from westminster mps on the opposition side. We understand some Opposition Mps are considering attaching amendments to this Withdrawal Agreement bill, and that could change it so much the government may pull it, and then ask for an extension, which means we would see a general election in the u. K. Before we see brexit have been. There are a lot of moving parts and we will have more of a sense on tuesday once we have the Withdrawal Agreement bill being brought to parliament, when we see what sort of amendments opposition may try to attach to it. Romaine our thanks to emma chandra. Lets turn to the market. Many factors coming into play when it comes to evaluating the stock market, but is a good time now to be buying into the longterm . Joining us now is John Buckingham over at afam capital. Always great to get your thoughts. When you look at where the market has been in the u. S. , bumping up against these alltime highs but not quite finding a way to break through, im wondering what you see as the shortterm springboard that is going to move the market decisively higher. Obviously, we are at the mercy of the geopolitical events. If we get a trade deal with china, that would be the catalyst to take a significantly higher. Were always focusing three to five years out. Stocks are really attractive hear from a valuation perspective, despite being near alltime highs. If you think were Interest Rates are, stock prices should be content significantly higher. Mutual fund flows, people are not optimistic about stocks. People have been bailing on ixedrate it there is not a lot of euphoria that we have seen in the markets. I think stocks are under owned by investors. If anything, we have had a bubble in the bond market, where you think about where Interest Rates are in the u. S. , and then you think about all of the negative yielding debt around the world. Those numbers dont lie, but you have people looking ahead to the current earnings season. The prediction is for a 3. 6 aggregate drop in earnings for the s p 500. 20 multiple on the s p 500, and that scares people a little bit. In thisreached a trial earnings decline, is there a reason for people to get back in now . John so far, earnings have been good, when you look at last weeks banks earnings. Most were expecting them to be pretty depressed, given the Interest Rate issue. They usually do, will come in better than expected. You mentioned the p e ratio. When you think about where Interest Rates are, what kind of yield are you getting on cash, what kind of yield are you getting on a riskfree instrument like the 10 year treasury . When you talk about a Money Market Fund yielding 1. 7 or so, 5 ,ared to 2007 when it was or 2000, when it was 6 valuations can be a lot higher in my mind when Interest Rates are lower, as they are today. I just dont see rates rising substantially from here. The fed has been very accommodative, and we have the economy muddling along, but i dont see rates skyrocketing from here, which makes stocks attractive. You think about dividend yield as well, our portfolio, we hold more than 3 and Power Forward pes are in the 12 range. Market you dont see skyrocketing, we obsess over the yield curve. We have seen this sort of steepening over the past few weeks. Do you think that is going to continue, or is this a blip on the screen . John there are a lot of factors that go into where the 10 year or the twomonth or three have in your treasury is at, including treasuries in europe. I dont see the yield curve being a problem. In our research, we looked at previous yield curve inversions. Believe it or not, it says you should buy stocks, and in particular value stocks, when the yield curve has inverted. It is not inverted today. The idea that the yield curve will predict the session has spooked a lot of people but is not supported by the historical data. That is coming that we spend time doing, looking at numbers, how stocks have actually performed, rather than just taking the headlines saying this look at it recession and i want to get out of stocks. This is the kind of stuff that has scared a lot of investors. We think the secret in stocks is not to get scared out of them. Even if we knew when recession would happen, we still should not get out of them based on historical precedent. Romaine when you look at the various sectors of the market, anything stand out to you better than others . John things that have been beaten up our areas that we would be more interested in today. Financials, we talked about the yield curve expanding, steepening. Financial stocks would look attractive. 4 ,orp is yielding over just had decent earnings last week, trading at less than 10 times earnings, and has a lot of income coming from the noninterest area. Financials are a, even some consumer stocks. People are worried about the health of the consumer, which translates into lower stock prices usually in those sectors come industries. Strikeow, we have the going on with General Motors, so gm is a name that people should take advantage of, provided they have a longterm trading horizon. Theas the kicker of Autonomous Vehicle area. These Companies Like General Motors are not necessarily like they used to be in the past. These are stocks that i think can do both for investors and should be trading for more than five or six times earnings. Romaine John Buckingham, great to have you on. Us today from irvine, california. Some breaking news out of washington, President Trump holding a cabinet meeting, speaking about a broad range of issues regarding the china trade deal. He says he hopes to sign that deal that month in chile where he is meeting with world leaders. Cap that members including Steve Mnuchin and Robert Lighthizer plan to speak with their chinese counterparts this friday regarding the trade deal. Lighthizer said the countries continue to have deputy level talks. Trump also talked about the situation in syria, the kurds, saying that something good would come out of it and as are his words. Banker sachs, a third arrested for Insider Trading. The exclusive bloomberg reporting. That is next. This is bloomberg. Romaine this is bloomberg markets. Im romaine bostick. Now to a bloomberg school. Goldman sachs facing a third allegation of Insider Trading in the last 18 months. A goldman Investment Banker was arrested friday for passing deal tips to a restaurant tour. Is someonehe story who covers bloomberg news. What is this case about . This was a relatively high level banker was a junior banker, your classic Insider Trading. Dealker who works on a big leaks the details of the deal. The contact gets a big gain. A few years later, the feds come knocking and he is arrested. Romaine what deal was singled out . Syngenta deal, a Buffalo Wild Wings deal. Anyone who had advanced information could make money. The person who received these illicit tips reaped about 2. 6 million in gains. Romaine one of the interesting things about the story, this is the third time in the past 18 months that you have had a relatively highprofile Insider Trading case involving a Goldman Sachs employee. That is the puzzling bit. These three cases dont seem to be linked to each other. Goldman sachs is a premier Investment Bank am a global dealmaking source. When you think about the biggest corporate transactions coming together, you usually have a goldman backing. When you have these coming together in a year, it is embarrassing. With a bank the size, are you always going to have an employee out there who may go rogue . Is this systemic or just three individual cases . There is a bad apple defense, but when you have three bad apples come you start worrying about the cart. There is nothing to suggest something systemic in the bank, ts, when you stack the fac that is where people start asking questions. In the previous case, you have the guy go to court and being sentenced to three months in prison. Before that, you had the case of the nfl linebacker conspiring with the banker. Romaine in the latest case, the other side of this involves a restaurant tour. What do we know about him, what do we know about him, what was his relationship with the banker . One of his restaurants is about 15 blocks down the road. I went there on friday, it looked pretty desolate. This guy was charged two weeks ago. At that time it was a sealed document. That has details of several other cases where he has been accused of Insider Trading. This is not the only banker caught up in this. It remains to be seen whether we have any other banker being snared from another highprofile like thet it does look prosecutors are going after a Big International Insider Trading scheme and are out to break up this ring. Romaine great reporting. Thank you. We want to bring you some breaking news. Mark zuckerberg speaking on a Conference Call, talking about how facebook will ban advertising that aim to suppress voting, talking about a lot of the efforts they are taking to protect the next election. The company says it is removing fake accounts, fact checked labels will appear on some ads. The company will also label content from statesponsored media. We will talk about that next. From new york, this is bloomberg. Romaine this is bloomberg markets. Im romaine bostick. Lets get back to those headlines regarding facebook and its efforts tied to u. S. Elections. The Company Announcing it will label content from statesponsored media and add new fact checked labels. Bloomberg has also learned Mark Zuckerberg waiting into the democratic primary by recommending Campaign Staffers for Pete Buttigieg. We are joined by one of the reporters who broke the story, tyler pager. What is the connection between Pete Buttigieg and Mark Zuckerberg . They both went to harvard, did not overlap but had some mutual friends. In 2017, they were aged used by a mutual friend during Mark Zuckerbergs 50state tour. While he was in indiana, he drove around the city with the mayor and live streamed the conversation. That is where the relationship began. Romaine that relationship seems to have included zuckerberg recommending specific people to join his campaign staff. Who are those people that we know about . Tyler two people recommended and hired. They are both in the data part of the campaign, one of them worked at facebook, Silicon Valley startup, and the other work at the zuckerberg initiative, mark and priscillas private family foundation. She also worked in Democratic Politics in indiana. Romaine facebook has been under a lot of scrutiny. We have some sound from Elizabeth Warren, who has attacked facebook on a lot of fronts. It is time to break it up. Lets enforce the antitrust law. Big tech, Mark Zuckerberg, im looking at you. Elizabeth warren, her rhetoric and her general attitude toward facebook is reflected in a lot of candidates , democrats and republicans. Is there any risk for Pete Buttigieg to be seen as so cozy with the ceo of a company that a lot of his other candidates are against . Emerged as aok has punching bag for democrats in the election. Republicans have been critical of the company as well. To be fair, buttigieg has been critical of big tech, saying he is concerned about the concentration of power, but not as concerned as somebody like Elizabeth Warren. It remains to be seen what the impact will be. But it is interesting that zuckerberg has reached out for recommendations of staff, and that two of them are now on the campaign. Know facebook is having a Conference Call right now, talking about how they will address some of the issues with regard to policing the content on their site. It also comes when zuckerberg gave a speech at georgetown where he kind of shrugged his shoulders that they need to be fact checkers. How will they reconcile these two things . This comes out of backlash primarily from Mark Crumpton<\/a>. This is bloomberg. It is one 00 in new york, 6 00 in london, 1 00 in hong kong. Romaine bostick in for vonnie quinn. Welcome to bloomberg markets. From bloomberg World Headquarters<\/a> in new york, here are the top stories on the bloomberg and from around the world that we are following. U. K. Prime minister Boris Johnson<\/a> denied a second vote on his brexit deal but there is another crucial vote tomorrow on the divorce plan. Goldman sachs dealing with an unwelcome string of insider charges. Mixing business with politics. Facebook Ceo Mark Zuckerberg<\/a> privately recommending several hires to Pete Buttigiegs<\/a> president ial campaign. This as the tech ceo faces attacks from both sides on misinformation, privacy, and election meddling. Kailey leinz is here. Tell us what is going on. Alley the rally continues, three major averages near the highs of the session. The s p 500 above that 3000 level. Tradesm in the market on with President Trump<\/a> saying he hopes to ink a deal with china next month in chile. Take a look at dow transports. 1. 6 , gaining for a fifth day. If you hop in the terminal, take a look at how transports have performed relative to the broader dow jones. Outperforming for five days in a row, a wide range of outperformance. That index is being led higher by railroads. Csx and Union Pacific<\/a> up by 3 . Boeing is a big drag on the dow. Down another 3 or so today on some downgrades. More woes for the 737 max. I want to look at tech. 19 of the 20 largest stocks in the nasdaq on friday were lower but we are seeing a rebound today. Apple is up 1. 8 , fresh record. Nvidia and rpc also up. On those oil companies, lets took a look at those. Halliburton out with a Solid Earnings<\/a> report this morning. Growing its international market. That has to hire peers higher. Getting an upgrade at citigroup on an attractive valuation. Romaine thank you. Lets turn to the u. K. , another blow to Prime Minister<\/a> johnsons exit plan. John bercow has rejected the government plan or a second vote, saying members of parliament have already debated and voted on the plan. Here with the latest is emma chandra from westminster. Him tonot really expect move forward with this vote today necessarily, but it did appear Boris Johnson<\/a> was counting on this to further his cause. Right. Oure absolutely we had been expecting the government had wanted another meaningful vote on his brexit deal today. That was denied by the speaker of the house of commons, german or co, saying it was essentially the same question that mps were asked on saturday. He cited Convention Going<\/a> back just a little historical analysis for you. We will not have that vote tonight. It now means attention moves to the Withdrawal Agreement<\/a> bill. This is a massive piece of legislation that would allow the brexit deal that was negotiated by Boris Johnson<\/a> and the eu to become part of u. K. Law. In the last few minutes, you have heard from the leader of the house of commons, jacob reesmogg, a member of Boris Johnson<\/a>s government, setting out the timetable for that. We understand there will be a vote where they will publish the Withdrawal Agreement<\/a> bill, and then a vote known as the second reading tomorrow. The government expects to win that. That would be seen as a victory for Boris Johnson<\/a> and the government. Following on from that would be a programknown as motion. That would allow them to accelerate the process by which this bill would become law. Thinksly, the government they can accelerate that process, and will be able to get all of the relevant legislation passed before the october 31 deadline. Obviously a lot of moving parts but we have heard some relatively positive comments from a lot of the folks on the european side. When you consider some of the praise johnson is getting from the European Union<\/a> members, what is the main impediment to getting this done . Right. Ou are absolutely a lot of europeans positive, they want this deal to go through. They also want brexit to get done. They dont necessarily want to give another extension. Boris johnson has had to ask the European Union<\/a> for another extension just in case. Would come from westminster mps on the opposition side. We understand some Opposition Mps<\/a> are considering attaching amendments to this Withdrawal Agreement<\/a> bill, and that could change it so much the government may pull it, and then ask for an extension, which means we would see a general election in the u. K. Before we see brexit have been. There are a lot of moving parts and we will have more of a sense on tuesday once we have the Withdrawal Agreement<\/a> bill being brought to parliament, when we see what sort of amendments opposition may try to attach to it. Romaine our thanks to emma chandra. Lets turn to the market. Many factors coming into play when it comes to evaluating the stock market, but is a good time now to be buying into the longterm . Joining us now is John Buckingham<\/a> over at afam capital. Always great to get your thoughts. When you look at where the market has been in the u. S. , bumping up against these alltime highs but not quite finding a way to break through, im wondering what you see as the shortterm springboard that is going to move the market decisively higher. Obviously, we are at the mercy of the geopolitical events. If we get a trade deal with china, that would be the catalyst to take a significantly higher. Were always focusing three to five years out. Stocks are really attractive hear from a valuation perspective, despite being near alltime highs. If you think were Interest Rates<\/a> are, stock prices should be content significantly higher. Mutual fund flows, people are not optimistic about stocks. People have been bailing on ixedrate it there is not a lot of euphoria that we have seen in the markets. I think stocks are under owned by investors. If anything, we have had a bubble in the bond market, where you think about where Interest Rates<\/a> are in the u. S. , and then you think about all of the negative yielding debt around the world. Those numbers dont lie, but you have people looking ahead to the current earnings season. The prediction is for a 3. 6 aggregate drop in earnings for the s p 500. 20 multiple on the s p 500, and that scares people a little bit. In thisreached a trial earnings decline, is there a reason for people to get back in now . John so far, earnings have been good, when you look at last weeks banks earnings. Most were expecting them to be pretty depressed, given the Interest Rate<\/a> issue. They usually do, will come in better than expected. You mentioned the p e ratio. When you think about where Interest Rates<\/a> are, what kind of yield are you getting on cash, what kind of yield are you getting on a riskfree instrument like the 10 year treasury . When you talk about a Money Market Fund<\/a> yielding 1. 7 or so, 5 ,ared to 2007 when it was or 2000, when it was 6 valuations can be a lot higher in my mind when Interest Rates<\/a> are lower, as they are today. I just dont see rates rising substantially from here. The fed has been very accommodative, and we have the economy muddling along, but i dont see rates skyrocketing from here, which makes stocks attractive. You think about dividend yield as well, our portfolio, we hold more than 3 and Power Forward<\/a> pes are in the 12 range. Market you dont see skyrocketing, we obsess over the yield curve. We have seen this sort of steepening over the past few weeks. Do you think that is going to continue, or is this a blip on the screen . John there are a lot of factors that go into where the 10 year or the twomonth or three have in your treasury is at, including treasuries in europe. I dont see the yield curve being a problem. In our research, we looked at previous yield curve inversions. Believe it or not, it says you should buy stocks, and in particular value stocks, when the yield curve has inverted. It is not inverted today. The idea that the yield curve will predict the session has spooked a lot of people but is not supported by the historical data. That is coming that we spend time doing, looking at numbers, how stocks have actually performed, rather than just taking the headlines saying this look at it recession and i want to get out of stocks. This is the kind of stuff that has scared a lot of investors. We think the secret in stocks is not to get scared out of them. Even if we knew when recession would happen, we still should not get out of them based on historical precedent. Romaine when you look at the various sectors of the market, anything stand out to you better than others . John things that have been beaten up our areas that we would be more interested in today. Financials, we talked about the yield curve expanding, steepening. Financial stocks would look attractive. 4 ,orp is yielding over just had decent earnings last week, trading at less than 10 times earnings, and has a lot of income coming from the noninterest area. Financials are a, even some consumer stocks. People are worried about the health of the consumer, which translates into lower stock prices usually in those sectors come industries. Strikeow, we have the going on with General Motors<\/a>, so gm is a name that people should take advantage of, provided they have a longterm trading horizon. Theas the kicker of Autonomous Vehicle<\/a> area. These Companies Like<\/a> General Motors<\/a> are not necessarily like they used to be in the past. These are stocks that i think can do both for investors and should be trading for more than five or six times earnings. Romaine John Buckingham<\/a>, great to have you on. Us today from irvine, california. Some breaking news out of washington, President Trump<\/a> holding a cabinet meeting, speaking about a broad range of issues regarding the china trade deal. He says he hopes to sign that deal that month in chile where he is meeting with world leaders. Cap that members including Steve Mnuchin<\/a> and Robert Lighthizer<\/a> plan to speak with their chinese counterparts this friday regarding the trade deal. Lighthizer said the countries continue to have deputy level talks. Trump also talked about the situation in syria, the kurds, saying that something good would come out of it and as are his words. Banker sachs, a third arrested for Insider Trading<\/a>. The exclusive bloomberg reporting. That is next. This is bloomberg. Romaine this is bloomberg markets. Im romaine bostick. Now to a bloomberg school. Goldman sachs facing a third allegation of Insider Trading<\/a> in the last 18 months. A goldman Investment Bank<\/a>er was arrested friday for passing deal tips to a restaurant tour. Is someonehe story who covers bloomberg news. What is this case about . This was a relatively high level banker was a junior banker, your classic Insider Trading<\/a>. Dealker who works on a big leaks the details of the deal. The contact gets a big gain. A few years later, the feds come knocking and he is arrested. Romaine what deal was singled out . Syngenta deal, a Buffalo Wild Wings<\/a> deal. Anyone who had advanced information could make money. The person who received these illicit tips reaped about 2. 6 million in gains. Romaine one of the interesting things about the story, this is the third time in the past 18 months that you have had a relatively highprofile Insider Trading<\/a> case involving a Goldman Sachs<\/a> employee. That is the puzzling bit. These three cases dont seem to be linked to each other. Goldman sachs is a premier Investment Bank<\/a> am a global dealmaking source. When you think about the biggest corporate transactions coming together, you usually have a goldman backing. When you have these coming together in a year, it is embarrassing. With a bank the size, are you always going to have an employee out there who may go rogue . Is this systemic or just three individual cases . There is a bad apple defense, but when you have three bad apples come you start worrying about the cart. There is nothing to suggest something systemic in the bank, ts, when you stack the fac that is where people start asking questions. In the previous case, you have the guy go to court and being sentenced to three months in prison. Before that, you had the case of the nfl linebacker conspiring with the banker. Romaine in the latest case, the other side of this involves a restaurant tour. What do we know about him, what do we know about him, what was his relationship with the banker . One of his restaurants is about 15 blocks down the road. I went there on friday, it looked pretty desolate. This guy was charged two weeks ago. At that time it was a sealed document. That has details of several other cases where he has been accused of Insider Trading<\/a>. This is not the only banker caught up in this. It remains to be seen whether we have any other banker being snared from another highprofile like thet it does look prosecutors are going after a Big International<\/a> Insider Trading<\/a> scheme and are out to break up this ring. Romaine great reporting. Thank you. We want to bring you some breaking news. Mark zuckerberg speaking on a Conference Call<\/a>, talking about how facebook will ban advertising that aim to suppress voting, talking about a lot of the efforts they are taking to protect the next election. The company says it is removing fake accounts, fact checked labels will appear on some ads. The company will also label content from statesponsored media. We will talk about that next. From new york, this is bloomberg. Romaine this is bloomberg markets. Im romaine bostick. Lets get back to those headlines regarding facebook and its efforts tied to u. S. Elections. The Company Announcing<\/a> it will label content from statesponsored media and add new fact checked labels. Bloomberg has also learned Mark Zuckerberg<\/a> waiting into the democratic primary by recommending Campaign Staffers<\/a> for Pete Buttigieg<\/a>. We are joined by one of the reporters who broke the story, tyler pager. What is the connection between Pete Buttigieg<\/a> and Mark Zuckerberg<\/a> . They both went to harvard, did not overlap but had some mutual friends. In 2017, they were aged used by a mutual friend during Mark Zuckerberg<\/a>s 50state tour. While he was in indiana, he drove around the city with the mayor and live streamed the conversation. That is where the relationship began. Romaine that relationship seems to have included zuckerberg recommending specific people to join his campaign staff. Who are those people that we know about . Tyler two people recommended and hired. They are both in the data part of the campaign, one of them worked at facebook, Silicon Valley<\/a> startup, and the other work at the zuckerberg initiative, mark and priscillas private family foundation. She also worked in Democratic Politics<\/a> in indiana. Romaine facebook has been under a lot of scrutiny. We have some sound from Elizabeth Warren<\/a>, who has attacked facebook on a lot of fronts. It is time to break it up. Lets enforce the antitrust law. Big tech, Mark Zuckerberg<\/a>, im looking at you. Elizabeth warren, her rhetoric and her general attitude toward facebook is reflected in a lot of candidates , democrats and republicans. Is there any risk for Pete Buttigieg<\/a> to be seen as so cozy with the ceo of a company that a lot of his other candidates are against . Emerged as aok has punching bag for democrats in the election. Republicans have been critical of the company as well. To be fair, buttigieg has been critical of big tech, saying he is concerned about the concentration of power, but not as concerned as somebody like Elizabeth Warren<\/a>. It remains to be seen what the impact will be. But it is interesting that zuckerberg has reached out for recommendations of staff, and that two of them are now on the campaign. Know facebook is having a Conference Call<\/a> right now, talking about how they will address some of the issues with regard to policing the content on their site. It also comes when zuckerberg gave a speech at georgetown where he kind of shrugged his shoulders that they need to be fact checkers. How will they reconcile these two things . This comes out of backlash primarily from Democratic Candidates<\/a> who have been critical of facebook or not backchecking political ads on their platform. This is seemingly indirect response to that. Joe biden has been upset for facebooks refusal to monitor ads about him and his son. Romaine thank you, taylor. Coming up, election day in canada. This is bloomberg. Mark im Mark Crumpton<\/a> with bloomberg first word news. Canadian Prime Minister<\/a> Justin Trudeau<\/a> appear set to retain power in todays election but he is facing the threat of losing his majority in parliament. The Prime Minister<\/a> standing has been hurt by a series of scandals. A firstterm canadian Prime Minister<\/a> with a parliamentary majority has not lost a bid for reelection in 84 years. Trudeau brought his wife and three children with him as he voted in his home district in montreal. Turkey is written warnings it will resume its military offensive in northeast syria if kurdish fighters do not abide by a u. S. Brokered ceasefire and withdrawal from the area. Turkey has demanded Kurdish Forces<\/a> withdraw from a border strip in syria where it intends to resettle refugees. The ceasefire negotiated last week is set to expire tuesday evening. After three days of riding, the president of chile has a stark message. He says the country is at war and called on people to choose sides. Chiles copper unions have responded for calls for strikes. Eight people have been killed in santiago. Chilesthe violence has been trd by higher transport fares. Demands o have now spread to transportation and education. President trump is putting together possible ripple replacement for mick mulvaney. The list includes former new Jersey Governor Chris Christie<\/a> and attorney general of matthew whitaker. The president is said to be unhappy about mulvaney. Global news 24 hours a day, onair, and tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. Im Mark Crumpton<\/a>. This is bloomberg. Shery live from bloomberg World Headquarters<\/a> in new york, im shery ahn. Amanda live in toronto, im amanda lang. Welcome to our special election in addition, canada countdown. As canadians head to the polls, here is what were looking at. Candidates is in the fight for his political life as he struggles to keep his liberal party in office. The latest on the canadian election. Joe oliver, canadas former conservative minister of finance will weigh in on the issues that are not being talked about in the race for Prime Minister<\/a>. Where do the candidates fall when it comes to taxes . Promises to live tax cuts to business tax cuts are on the table. Lets get started with a quick look at the major averages. U. S. Stocks pushing higher in the afternoon session with the s p 500 above the 3000 level. Energy ant financial leading the gains in todays session. More optimism about a potential trade deal between china and the u. S. , potentially being signed next month in chile. Apple at a record high with the 0. 9 . Ining. 09 on concernsr boeing of that 737 max crisis. Another big story we are following, brexit. The pound under pressure at the moment. This after it rose past that 1. 30 level. Now under as we are hearing the u. K. Parliament is rejecting another vote on Prime Minister<\/a> Johnsons Brexit<\/a> deal. The focus remains on what happens with the canadian elections. Of currenciesng on that front, the loonie may also be a factor. A technical chart of the loonie. ,e have seen months of weakness but hitting their key technical levels. It will be interesting to see whether there is a reaction. You may see a strong reaction if we have a minority government with a leftleaning party. We will continue to watch this one. It is, of course, the general election today. Canadians heading to the polls, those that did not vote early. It has been one of the most unpredictable in recent memory. The top contenders are Justin Trudeau<\/a> and conservative leader Andrew Scheer<\/a>. They have been tangled in a virtual tie for the popular vote. At the moment, it appears neither have a full path to the governing the parliamentary system. To break it down for what it means is josh wingrove, coming to us from ottawa. One thing that we know is when it is this tight, anything can happen. Characterize for people that dont know we just had this alluded to how unusual it is to go from an incumbent position to a possible minority or loss out right. Ministerslly, prime get two kicks of the can, so it would be particularly unusual if trudeau ends up with fewer seats. Necessarily mean that he will not be Prime Minister<\/a>, but certainly an inherent rebuke of his record. In 2015, andwer even his best Case Scenario<\/a> will be well under the amount of districts that he won four years ago. A lot of moving pieces, but you are right. Difficult to predict. Wayome cases, you have four races. A candidate could get 20 and win the district. That makes it tough to nail down how things are going. Tends to bete spread out better than his main rival Andrew Scheer<\/a>, and that is working in his favor a little bit. Whether it will deliver a win for him remains to be seen. Shery we have seen the u. S. Canada relationship strained because of these on canadiansed goods, usmca signed but not ratified. Do we know how the election could impact that bilateral relationship . Josh we have not seen donald trump way into much, he did talk about the blackface scandal that trudeau was in. Barack obama of course endorsed trudeau. With usmca, i would not think it is at risk either way. Both the liberals and the conservatives more or less support the deal, and there is really no scenario where the parties could not combined together and pass it. When they pass it depends in part on when Congress Passes<\/a> it, so that is the big question. That one is pretty safe. More broadly on u. S. Relations, trudeau has had a hot and cold relationship with President Trump<\/a>. It has been warmer lately. Trump has stopped beating up on iudeau from last year, but dont know if he is paying attention. He has a few things going on down there that is of a higher temperature than normal in washington. [laughter] amanda to put it mildly. Thank you. How will the outcome of the election affect your canadian investment . Philip peterson is the chief investment strategist at man u life. Thank you for being with us. In the one question u. S. It is clear, we have an of what an Elizabeth Warren<\/a> win would do. Do you worry about one versus the other . If it was clear cut that we had a strong conservative or liberal majority, then we would be able to discern some policy. At this point, given it will be a weak majority or perhaps minority government, one way or another, investors would not be making a bad case to make a kneejerk reaction on the outcome and say i was sell all of my stocks or by all of my stocks because of this reason. We need to see what policy is forthcoming. A liberalwe get government propped up by the ndp, what does that mean for Energy Policy<\/a>, the opportunities in that sector . Philip that is the great question. The area of most opportunity, ks around the canadian stock market is the Energy Sector<\/a>. It has been held up as because of this lack of pipeline conclusion. We need some solid policy to come as a result of that. Minoritye a liberal within ndp on the other side, we could expect further delays as to any resolution to this pipeline quandary we are in. Amanda if the polls are accurate there have been recent elections were the polls were dead wrong, but we would be looking at a minority of some kind with a kingmaker of some kind, either ndp or bloc quebecois. Scenario, the minority wants the pipeline, and the kingmaker wants one. From an investment point of view, do you say, we have seen what has happened for months and months, and we are pulling out . Philip we have to question how much of that has been done. We know the Energy Sector<\/a> is trading at a deep discount. Downside. Ee more how much more bags the question but it is what we have been waiting on. We are hoping for clarity as a result of the Energy Policy<\/a> to determine where we should be with respect to energy in our portfolios. Shery what about the broader stock market level . The canadian economy has been relatively strong compared to others. Is this reflective of what is happening in the domestic economy . Philip i think it is. The Global Economy<\/a>, while it is running out of slower pace than what we have seen the last couple of years, we are not seeing signs of recession. , for thecompanies majority, i would argue, are more global in nature. They are faring well through this environment. If you look at them relative to u. S. Peers, european peers, they are trading at a healthy discount. We could see some significant catch up on the tsx. Amanda we have seen some dollar weakness, but it has begun to stabilize. Nobody says they want to see their currency week, certainly does not want to admit it, but it is not bad for an export economy. Philip where we are with the Canadian Dollar<\/a> trading at . 76 is favorable for exporters. The question is if it will stay there or go higher. The results of the election could skew that one way higher. But if you look at the Interest Rate<\/a> differential, the canadian twoyear is trading above the u. S. , which would imply upward pressure on the u. S. Dollar. Shery thank you for joining us today, philip peterson. Coming up, Andrew Scheer<\/a> has made canadas National Debt<\/a> a keystone of his campaign. We will speak with the former canadian finance minister joe oliver about how the currency is weighing on the economy. Like with any election, there has been back and forth and tensions among the candidates. A look back at some of that rhetoric. A ponytrudeau, you are and a fraud and you dont deserve to govern the country. Easy currencyme for politicians that want to strike up uncertainty in peoples hearts and get people to vote against things. I want to say directly to canadians, you do not need to choose between mr. Delay and mr. Denied. There is another option. We are committed to a real plan that will take on the biggest polluters, take on the powerful interests. That is what we need to do. Shery this is bloomberg markets. Im shery ahn in new york. Amanda im amanda lang in toronto. Electiono a special edition of canada countdown. We are four years posted Justin Trudeau<\/a> sweeping to power in a wave of optimism and change. This election has been cast on the Prime Minister<\/a>s to lose. Joe oliver is a member of the conservative party and served as finance minister and minister of Natural Resources<\/a> under Stephen Harper<\/a>. Thank you for being here. You are partisan, we will put that out there. But you are also the last finance minister to bring us a balanced budget. We are focused on balancing the budget in the 1990s through the liberal government, Stephen Harper<\/a> government. What has happened . Matter . Deficits are here to stay, as far as canadians are concerned. Be here toannot stay, and we know the dangers particularly with a looming recession. Concerned, putting country before party, concerned about the amount of deficit, the size of debt, the amount of interest that the average canadian family is paying, some 6,400. I am concerned that the deficits will balloon completely out of control in a recession. Frankly, im concerned, it looks like we are going to have a minority government. It will be a government that may be dependent on ndp support. Showsatform of the ndp 130 billion in the next four years. Platform iserals another 92 billion in addition to the 72 billion they incurred. People dont focus on them because they are so big but they translate into waiting time at hospitals, education, infrastructure, potholes in the road. Shery we are now seeing a slowing Global Economy<\/a> in the u. S. The numbers are not looking all that great. Would this be the time for more about lightning or time to ask for more spending to boost the economy . Joe im sorry, i did not hear. Amanda in terms of the spending we may see on the economy, you note there could be an economic implication from whoever is in power. Will there be a stronger reaction then people think . Joe the market will wake up to the fact that we have a government now which has no intention of balancing the budget, as far as the eye can see. This will be doubled up, maybe tripled. We would not be talking about deficits of 20 billion but 40, 50. In a downturn, as you know, automatic stabilizers come in, revenues go down, stimulus spending. We are really looking at numbers that are shocking. Amanda one of the things the election has shown is how regionally divided we are. We have two leading parties, the conservatives and liberals, who say pipelines will happen. Then we have the block and the ndp saying we are canceling transmountain. What signal will that send to the Investment Community<\/a> . Joe direct investment is now down. It has been in the last few years a quarter of the u. S. , a third in the oecd countries, and this will be a further signal that we dont intend to build the infrastructure necessary to allow our oil and gas to be sold to overseas markets. Justin trudeau has a huge problem. He spent 4. 5 billion buying transmountain. I dont see how he will say he will not go ahead. On the other hand, he is desperate for a lifeline, so with all the other parties adamantly opposed, im not certain what he will do. This is not good news for energy development. Furthermore, not good news for national unity. Amanda do you expect a reaction in the dollar . Joe i dont know if it will be quickly, but it is hard to believe it will not have an impact on the dollar. Shery joe oliver, thank you so much, former canadian finance minister. We are now hearing from the ceo of boeing speaking in a message to employees, saying the company is deeply committed to fully cooperating with the government and is making steady progress on the 737 max. This as we see boeing experiencing its worst day since 16, revelations of instant messages chronicling misgivings during the grounding of the 737 max jet, and now the ceo coming out and speaking to employees, saying there is steady progress on the 737 max. Topped thetax cuts issues for canadians heading to the polls. Will the conservative or the liberal agenda win out . This is bloomberg. We have put more money in peoples pockets by cutting taxes for the middle class, and raising them on the wealthiest 1 . We made the Canada Pension Plan<\/a> stronger because in a country like ours, seniors should not struggle to make ends meet. We renegotiated nasdaq, securing trade access to our largest and most important trading partner at a time of u. S. Protectionism and unpredictability. That was Prime Minister<\/a> Justin Trudeau<\/a> speaking last month. One of the topics he touched on was taxes. That topic is often top of mine for voters in canada. Wudrick is with us, has served as a Campaign Manager<\/a> for several conservative party candidates. We are out in all of your partisan stripes today. Outing all of your partisan stripes today. There has been a lot of criticism about the socalled boutique tax cuts, taxes for putting your kids in art or sports programs. Stephen harper liked them. Very conservative in nature. Is the criticism fair . We are a group that likes broadbased cuts. The credits are more like jerky. It is very obligated, its a wasted opportunity. It is better to have broadbased tax cuts. They are more fair and does not clutter up a tax code, which in this country is already complicated. Shery how would this complicate the tax system that you mentioned . It is sort of back to the future in terms of conservative promises. Bringing back credits from the harper era. The proposee seen other broadbased measures, like cutting the lowest income tax bracket. A timely, some relief at when people are concerned about affordability issues. Some tactual he is better than no tax relief at all. Amanda we hear from some of the parties, and given that we may have a coalition, it is worth talking about what the ndp has in mind. There are raising taxes on the table, corporate taxes could be going up, a luxury tax on 100,000 or more. Do you worry about the negative effect on those things . Aaron absolutely. Aside from the impact in canada alone, of course, the u. S. Is our largest trading partner and competitor, so we have to be mindful of the relative tax rates in this country. The trump tax cuts had an impact of leapfrogging canada in a lot of ways in terms of attractiveness. Going the other direction here, especially in a dubious time when there are storm clouds on the horizon, that would be a risky thing. Shery throughout the election, how much focus have weve seen have we seen on top earners . Not as much as early days, coverage has dissipated recently. We think it is an issue that is top of mind. It does matter to a lot of canadians, especially in large cities, where the cost of living is a big issue. Tax cuts and finding ways to keep money in canadians pockets is something that liberals and conservatives have shown they want to focus on. Happenedne thing that a few years ago, our value added tax was lowered. Consumers, very unpopular with economists. Would you like an economy that would raise that gsp back up two Percentage Points<\/a> . Aaron we are a group very reluctant to enforce any tax hikes. We would rather see an income tax cut, a deeper and bigger one than one that is on offer now, would be our preferred way. Shery thank you so much for joining us today, aaron wudrick. A quick reminder, you can catch all of our past interviews on the bloomberg. The function is tv. You can also send us questions for the guest on the bottom left. Live from new york and toronto, this is bloomberg. From the couldnt be prouders to the wait did we just winners. Everyone uses their phone differently. Thats why Xfinity Mobile<\/a> lets you design your own data. Now you can share it between lines. Mix with unlimited, and switch it up at anytime so you only pay for what you need. Its a different kind of Wireless Network<\/a> designed to save you money. Save up to 400 a year on your wireless bill. Plus get 250 back when you buy an eligible phone. Call, click, or visit a store today. Mark i am Mark Crumpton<\/a> with bloombergs first word news. Made a American Forces<\/a> quick withdrawal from northern syria, the United States<\/a> considering leaving some troops behind. Defense secretary mark esper said some forces may state to secure oil fields and make sure they do not fall into the hands of an insurgent Islamic State<\/a>. The pentagon chief says no official decision has yet been made. President trump has repeatedly said Islamic State<\/a> has been defeated. Energy secretary rick perry spoke at the European Union<\/a> in brussels today to promote Nuclear Energy<\/a>. Secretary perry promoted small, modular reactors as the future of energy. We are reaffirming Nuclear Energy<\/a> as an indispensable source of energy for the world. And contrary to naysayers, Nuclear Energy<\/a> is safe. Nuclear energy is clean energy. And that is why we launched the Nuclear Innovation<\/a> Clean Energy Future<\/a> initiative. 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