Transcripts For BLOOMBERG Bloomberg Markets 20151210 : vimar

BLOOMBERG Bloomberg Markets December 10, 2015

Up. 4 . 500 is the dow is up half of a percent. We are coming off session highs. Has just hit is 50day moving average. My terminal look at right now. Hold on one second. I have an employment reminder i needed to get rid of. Ands look at the s p 500 the s p sectors. Energy is up right now by 1. 2 . Half aials are up by percent. These are all helping todays advance. That, i want to look at airline stocks. Airline stocks also trading today. A year in 3 gain holiday travel. Delta air is up by 2. 75 . Spirit air also getting a pop. The reason behind this is that the trade group, airlines for america, is forecasting a 3 gain in year end holiday travel. Also north American Airlines boosted atlantic capacity by 2. 7 in october. Lets take a look at the dow jones transportation index. Six cents. About it is important to point out that this index is down 16 yeartodate. Treasuries, the 10year yield is unchanged. It was up by about two basis points. This is earlier where it had. Een a space jump in a week scarlet the appointments keep popping up for you. Y exactly. Scarlet lets go to a crumpton. Has signeddent obama legislation that creates seeping changes on how teachers are evaluated and how the worst schools in the nation are pushed to improve. Is anent obama this early christmas present. After more than 10 years, members of congress from both parties have come together to revise our National Education law. A christmas miracle. A bipartisan bill signed right here. Mark it was a rewrite of the no child left behind law. A takes our away from the federal government and gives it back to the states to students will have do take federally required reading and math exams. In chicago, dozens of demonstrators staged a diein. Againste latest protest the killing of a by teenager by a white officer. Critics want mere rahm emanuel to resign, saying he withheld video showing the killing for months. The mayor gave an emotional speech before the city council yesterday. He called for reforms to the police department. Analyst an Illinois State lawmaker is proposing a bill that would let voters recall the mayor. That is not currently allowed under the law. Guns will soon be effective life at liberty university. It will allow guns in dormitories. At the Christian School in virginia asked for the rule change. Boston police oppose the plan. Funerals for the 14 People Killed in the california shooting massacre will begin today. Services are scheduled this afternoon for San Bernardino county workers. Friends and family members visited the scene yesterday. Sawgunman in the friend who and brought the Assault Rifle were related through marriage and may have plotted an attack together three years ago. The nominations for the 73rd Golden Globes are out. The Golden Globes will be broadcast on nbc on january 10. Get more on these and other breaking stories 24 hours a day at the new bloomberg. Com. Crumpton, i cant believe the americans did not make it onto the logo golden globe nominations. When it comes to the markets, the bank of england decided to keep Interest Rates unchanged, pointing to the recent route in Oil Changes Oil prices. All eyes now turning to the Federal Reserve and the rate increase expected next week. Tyler. Us now is john what the boe did is no surprise. We pretty much have telegraphed the the fed has telegraphed what it is going to do next week. Oil prices continue to be a surprise. Point one were where you to dohen opec decided not anything, do we understand the dynamics of what is driving Oil Prices Lower . John i think we are talking about consumptions not matching up with supply. What technology and things going on in the world, conservation and the continuation of pumping and pumping and pumping from the u. S. To opec, you potentially now have iran coming on, and if venezuela gets their act together, you have more supply coming on. It is kind of like bloomberg surveillance. I think oil in the ground is more valuable than oil out of the ground. Lookst for a while, it like we had stabilized. Now we are seeing another lower. Does this reflect any weakness in the broader economy . John if you take a look at the markets around the world come i think of the ocd is talking 3 toworldwide gdp around three point 5 . If there is a bump, that really throws things off. If youre looking at Manufacturing Centers through china and japan, a lot of them are struggling. The numbers are ok, but they are not great. It wont take much to throw it off. Commodities are an example of placertion of the market draggingmarket it equity indexes. Lester, equity indexes did ok. Last year, equity indexes did ok. Scarlet right now, we are in a waiting mode, waiting for the Federal Reserve to come out with its announcement. Expecting . We know we will probably get lift off on wednesday. We know the you the fed will reiterate fed increases. Where is the surprise on it . John i dont think there is a surprise element as opposed to finally getting it done. It may be half a percent move up on rates. Scarlet by when . Over the next year, year and half. So youre looking at four phases of money five basis point increases. Lot of this has already been priced into the marketplace. I still think there are good bonds out there. There are good stocks out there. But its tough for the overall market in general to outperform what we have seen in the last decade. Scarlet this is something that has come up quite often. It is a dislocation between credit and equity. The market manager has always been credit always leads. You can see hyg showing the yield on credit market. Case, are wee waiting for u. S. Stocks to plunge . John earnings out there have been fairly strong. That is what we have been talking about. Valuations are not that much higher than we were at the start of 2015. In the bond market, especially in the highyield area, you have to know your credits. Spreads are waiting so that valuebe a little bit more and the place to be. But i think you have to know your where you are investing, not only in bonds, but also in stocks. The overall indexes may struggle, but there has to be performers inside their bank that will do just fine. That is the key to making some investment moves right now. Scarlet stocks like facebook, google. In the corporate space, talk about Investment Grade and highyield at the stage of the cycle. John we stole a corporates. We we still really like corporates. Really like may be too strong. One of our great managers likes to say, you buy a bond, get it straight, and at the end of the day, you get your principal back. D is goinging the bon to be critical. There will be more minefields. Scarlet especially in the Energy Sector. John you got it. Opec had these issues in the old days, it would affect the middle east. Ow it affects oklahoma, texas there will be some issues along the lines of the Energy Sector have a more strings put on itself. Scarlet what about it spilling over into other sectors of the overall economy . John you have a fairly isolated. You look at pockets of the u. S. Economy theyre doing well. You have regions theyre doing well. View have pockets that still have not caught up yet. When you look at other sectors, when you talk about texas, it makes up a very small percentage of their state gdp. When you look at places like alaska, it is a huge amount. How much does that affect the overall u. S. Economy . Probably not a lot. But it will put a strain on bonds and Energy Stocks and energy bonds in that area. Scarlet what level of default the ucs rising to . What level of default do you see us rising to . John i would not even know. Seeing these type of things that are surprising the market a little bit. I think it is knowing the credit, looking at the credit, and understanding the company you are invested in right now will be marketable. Scarlet thank you. Coming up in the next 20 minutes, the deepening commodities route has Mining Companies feeling great pain. Some of them are taking matters into their own hands. Its twitter is shaking up advertising strategy by targeting those without accounts. Is that enough to make up for Slower Growth . And a hard economic reality that may get harder. Scarlet welcome back. Check in on our west coast wake up to tell you a little bit about what twitter is doing. It is time for the Bloomberg Business flash. Federal regulators have fined Fiat Chrysler for ct reporting lapses. Fiat chrysler says that it is revising to make sure it is in compliance. It is looking Like Airlines will improve their earnings record next year. Carriers in north america are leading the way. They will account for more than half of total income. You can always get more on that story and other Business News at bloomberg. Com. We want to head back to the markets desk. There was an ipo today. all the leaders i want to talk about are in the text fear. We get to the first one, the Software Provider at lassie and. Atlas itsian. Shares. Million right now, you can see its shares are soaring 29 . This is even higher after opening up 32 at 2767 . Atlassian software powers the likes of twitter and nasa. Twitter shares are surging right now, more than 6. 8 . They was up earlier by 5 . This shows ads to people who do not even have a twitter account. Web servers web surfers will now see ads. Revenueway to boost ad even as membership growth slows, which has a was a concern for the company. Payments will, Global Payments may be in talks to buy hartline payments. Heartlandnding higher. Global payments is up right now by about 3. 2 . About 1. 6 . S up by scarlet thank you so much. We will be speaking with the ceo of that company. Aboutl be talking atlassien in the next hour. Glencore announcing plans to reduce debt to as low as 18 billion by the end of 2016. It is also studying an initial Public Offering of its agriculture business. Is the name ofon again and it plans to cut its burden from 30 billion to 18 billion by the end of 2016. They have two ways they want to do that. One is to cut Capital Expenditures by the end of next year. Also, they want to double their target for the amount of money they want to raise from asset sales. They said they they would a stake in their agricultural unit. It wasnt just investors in glencore that rejoiced at the news. You look at cds or credit default swaps, or the cost of insuring glencores debt against default, the cost of that insurance fell on the back of these announcements. Glencore is the industrys cinemas indebted minor. And we also heard from the ceo who said he never wants to be in this kind of debt situation again. Scarlet we should note that peter grauer, the chairman of bloomberg lp, is a senior independent nonexecutive director of glencore. Still ahead, twitter has found a way to lift its advertising audience by half a billion people. We will tell you how. Scarlet welcome back to Bloomberg Markets. We have some breaking news of sorts. Certainly for Marissa Mayer and her family because she has Just Announced on twitter 13 minutes ago that she and her husband gave birth or she gave birth they welcomed identical to one girls this morning. Of course, mercer mayer has a lot of challenges at work at the moment with yahoo Marissa Mayer has a lot of challenges at work at the moment with yahoo selling off its core business. That is something we will continue to monitor as time goes on. But congratulations to Marissa Mayer. Lets look to twitter. It is try to prove to wall street that its business can survive even if membership stalls. The Company Announcing it will advertise to people who view tweets on its website without actually having an account. That increases twitters audience pay time, to as much as 800 million, if not more. Lets check in now with sarah frier who wrote his story. Sarah, tell us a little bit about what this plan is or whether it is an action already. Sarah twitter has been pummeled by wall street the last couple of years for having a slowing user base, slowing growth. 20 million users who log in and use twitter. That is 1 5 the size of facebook. So what this does is it opens up advertising to the people who click on links to tweets, whether its through Google Search or an email they got, and come to twitter. Click, there will be an ad. This will allow twitter to make money off the people that have a full reach of twitters platform. Scarlet is this an admission of sorts that twitters membership growth has plateaued . This is them saying, you know, we told you that our audience is bigger than our user base. This is us proving to you we can make money off it. The last couple of years they have set our reach as much bigger than that 320 million number. Dont pay much attention to that as you are. I wall street has not really taken that into account because they havent made money off of anyone else. So here they are saying they will make money. That is why the stock is up to scarlet jack dorsey recent that is why the stock is up. Recentlyjack dorsey named ceo. Is this is initiative . Sarah this is something the company has set for a while that they would do. Adam bain is in charge of the revenue operations. He has been intending to do this for a while. It has just been a long road for twitter. They have a lot of things going on right now. Finally, they have come to the point where they can do this. Scarlet any other way that twitter is looking to expand its audience to appeal to advertisers . Sarah they are advertising to people through their mobile ad network. So various thirdparty apps do twitter ads as well as well as partnerships with publishers, like yahoo japan, where they anddistribute tweets promoted tweets. Scarlet thank you. Still ahead, Chesapeake Energy will erase one billion barrels of oil from its books. Scarlet lets get to Bloomberg Markets. Mark Geneva Police are actively looking for suspects tied to the terror attacks in paris. Officials say police are increasing their counterterrorism vigils level and working with international and National Authorities to track down the suspects. A sydni teen had been being watch for more than a year. Coded texted messages to communicate with others about becoming a martyr. Officials say u. S. Attack helicopters could soon be flying over ramadi to help iraqi forces in the longrunning battle to retake the key city. Secretary asked carter is also sending additional advisors to assist iraqi soldiers making a final push into the city center. In as argentinas president today, he is a former mayor of when osiris and comes ormer mayor of buenos aires. They seeing is lifting the smog alert imposed two days ago. Schools have reopened and roads are open to all traffic after a cold front blew away some of the worst of the pollution. Meanwhile, china is getting a 300 million loan from the Asian Development bank to help clean up its smogchoked capital. At bloombergk news. Thank you so much. If you take a look at oil prices, they are down for a fifth straight day. In 10s their its a drop days. It has been a steady grind lower. Today, it fell to as low as 36. 52 a barrel. Will this cause a wave of deceleration in the u. S. Economy and other markets . Peter fisher appeared on bloomberg go twitter set question. He also talked about challenges facing the Federal Reserve. Peter they are talking about the headlands of inflation in the energy Competence Energy conference and it is a little bit of their own making. That is an example for me that the cycle is out of sync. Ultimately, that is a pretty big tax cut for the American Consumer if Oil Continues to drag lower. Yes, it is hurting the energy complex, but that is not what a hold back the u. S. Economy. But the Inflation Forces in the world are real. Stephanie couldnt one say it is because rates being so low, sabres were being punished and they could not be in government bonds. They were pushed into the Corporate Bond market, into the highend market when they shouldnt have been. We saw so much new issuance in the last years, covenantlike deals, writing like Corporate Bonds. Up now investors are waking saying, maybe these companies arent so great. Peter for the u. S. Economy, we could see corporate margins get squeezed. We could see the credit cycle turn, but not get a recession. We could have a profits recession. We could have a credit squeeze recession in the yield markets. That is something investments investors have to wake up to. You have to do more than just see what janet yellen had to say. Seeing it yet. E it has been there for a while. Why isnt that showing up in the real economy . Peter the labor market is healing slowly. I think chairman yellen has been clear about this. There is a lag until you see the income, the wages, eight or nine months from the strength we now see in the labor market. One of the favorite statistics i have been looking at in the last decade is, at the university of michigan household survey, expectations, what did they expect to their income to be next year versus zero. Ear, just a spring back up to life. It is now up to 2 . Labor markets are healing. Income expectations are going to strike them. The taxcut energy is going to come through. Economythirds of our can do ok next year. But i think

© 2025 Vimarsana