Transcripts For BLOOMBERG Bloomberg Markets 20160504 : vimar

Transcripts For BLOOMBERG Bloomberg Markets 20160504

Numbers are coming out better than analysts had anticipated. The other big economic report of the morning has been next. Adp employment report showing a smaller than estimated gain in employment. Perhaps the precursor to fridays report but there is not always correlation between the two. Productivity falling 1 , even as the unit labor cost rose by 3. 1 , so there has been a lot to digest this morning for investors. Overall, we are still seeing this concern over Global Growth with a scenario coming back into play in the markets. That said, all averages are already up off of the early those with the session cutting the lost that we have seen just about in half. All three major averages. If you take a look at the bond can see the Economic Data and that is what we see for the s p 500 this morning. If you take a look at what is going on with the bond market this morning at what we have ,een seeing in the 10 year note i guess we do not have it, so we will be watching that to see what is going on across the board with the various Economic Data points. Oil has been spiking this morning ahead of the inventory report that we will be getting at 10 30. The 39you mentioned Companies Reporting the s p 500 earnings, so it does kind of like, should i stay or go . We are not sure. A statehere is sort of and go at all kind of companies. Travel and real estate Companies Reporting. That is part of the theme, so priceline coming up with earnings that fall short of analyst estimates for projections for next quarter. They say this because of the timing of the easter holiday. Also, talking about some of the global weakness with priceline getting about. 75 of the revenue abroad and those shares are down sharply. Avis predicting revenue rising at more than three point 5 estimates and turning around earlier losses. Zillow coming out with secondquarter revenue with forecasts at the midpoint of that beating estimates, so those shares are searching. Lending tree has been bouncing around all over the place. The company was higher earlier after the forecast the estimates, but not the stock has turned lower. For stocks in europe down the fourth consecutive day, the worst fourday run since early. Ebruary in that period stoxx 600 has fallen by 4. 6 percent and every single Industry Group has fallen. Today a big day for earnings. Europes guest oil producer, shell, beating analyst estimates. Better than expected for oil refining and chemical production countering crude prices. Shell is buying bg group to help withse out of the downturn the oil price and it promised accelerated savings from the takeover, as well as 30 billion in asset sales. These are the Big Oil Majors across the globe in 2016. Shell, chevron and the sun mobile have been fighting it out in the recent days. And exxon mobil have been fighting it out in the recent days. They are all roughly up by 13 with a total of 2. 7 higher, beating by 4 , so shell is not doing so badly. Europes Biggest Airline reporting a loss. It narrowed and fuel cost falling and restructuring measures beginning to bring down. Did caution that bogus that industry overcapacity is way not ticket price and it is a highly uncertain travel market. The white line shows the valuation of air france trading on estimated earnings roughly below three times. Howblue line is a stoxx 600 you wish in trading on 15 times estimated earnings. What is interesting is air france is the only airline in europe to rise and it is the cheaper on found you the cheapest on violation terms. Francis secondbiggest Bank Reported an unexpected increase in thirdquarter profits, boosted by consumer banking. Shares up by 3. 5 . Be watching that. Lets get to bloombergs first word news with vonnie quinn. Vonnie the republican is almostal nominee certainly donald trump. The head of the rnc is calling trump the presumptive nominee after a big victory in the indiana primary. Ted cruz exited the race. The victory is cleared for donald trump to win the nomination. Bernie sanders surprised Hillary Clinton by winning 53 of the vote in indiana, but clinton has an insurmountable lead in delegates and superdelegates. President obama is getting a firsthand look today at flint, theyre, today and tainted water supply. The president will speak to 1000 residents at the high school. They issued a Statement Emergency in flint four months ago because of widespread contamination in their water. The european commissions is return for a flow of refugees. Theyre paving the way protects to have the separate travels to europe. That is one of the recommendations they are making to eurozone countries. It has led to a big drop in refugee of arrival. Their linesading with israel. They will now have a headquarters in brussels. Military argued taken operations with the organization. The deal with nato may help Prime Minister netanyahu deflect talk that [indiscernible] that the twogame series in puerto rico will not be held there because of concerns about the zika virus. That is according to the associated press. Marlins players attended a seminar on zika that heightened concerns about playing the games and an announcement is expected by the end of the week. News 24 hours a day powered by our journalists and bureaus around the world. Betty thank you. Back with politics. In the victory speech last night, donald trump addressed one of his biggest hurdles. Mending a deeply fractured party and the main challenge of the republican nomination. Donald trump i did not expect this. Thinged tape is a brave to do and a great thing because we want to bring unity to the republican party. We have to to bring unity. It is so much easier if we have it. [applause] betty can trump really claim the mantle of republican unifier . Joining us now is marty schenker, Senior Executive editor for government economics in washington. You pointed out to me earlier that when you joined us back in february, when things were kicking off with the iowa caucus, you said it is hard not to see trump not be the nominee and here we are several months later and it looks like he is. I would ratherl, be lucky than good, but i betty or both. Marty yes, both are good things, but clearly, trump is going to be the nominee of the republican party. Now comes the hard part. Betty the hard part is unifying the party. Outrnc chairman tweeted donaldter the results trump is going to be presumptive gop nominee. We all need to unite and focus on beating Hillary Clinton. Never clinton. How significant is it that he tweeted that . He is obviously someone who needs to bring the Party Together and they will only be one nominee and donald trump is it. There are procedural things that in super pac proclamation. One of those, an interesting thing, is that he will have to turn the whole convention process over to trumps people at some point. By this time last election, mitt romneys people were in charge of Convention Planning and we will be watching to see when that takes place. Mark how is trump going to win this election . He says he is going to go off to clinton, but two thirds of americans hold a negative view of him. How can he beat clinton that comes to clinton if it comes to clinton and she gains the democratic nomination . Marty the disapproval rating for Hillary Clinton is not all that much better than donald trump, so i think the disapproval rating issue is kind of overblown because liquid he did in indiana with those kinds of disapproval is. He won by a vast majority, so i think as a race moves on, it will get a lot closer. Towill definitely need improve his standing among women. If he continues to have a 75 percent negative rating among women, it is difficult to see a path for him to win the election. At the same time, i think this race in november is going to be close. Mark listen to this soundbite from the former mexican president been sent a box vicente fox. X we better watch out for word, especially the american people. They need to wake up. He is proposing ideas that will not work. On the contrary, instead of serving jobs, they will lose jobs. Can trump or will trump tone back his views in building this wall, separated the u. S. And mexico . So we have to tone back some of his outlandish suggestions will we have to tone back some of his outlandish suggestions . Marty he was asked that this morning and he said, no, he will not change his views at all. I do think that represents an issue among the National Security establishment and the gop people like colin powell, have very serious concerns about him as commanderinchief. It will be interesting to see in the next weeks just how many of the gop elites actually back donald trump or might in fact back Hillary Clinton. Betty trump versus clinton. Looks like that is what we are looking at. Marty shanker, thank you so much. Much more ahead. Is old climbing too far into fast . Falling for a third day and gains have been extensive. We will talk to jim rickers about the case for holding the yellow. Live from london and new york. I am mark barton. Betty i am betty liu. Time for the Bloomberg Business flash. U. S. Addedn the fewer workers than expected. Newer porch of a dp say private payrolls grew by about 150 6000 in april and the federal government comes out with their monthly jobs report on friday. Prosecutors in brazil filed a billitongainst bhp over the dam rupture that killed as many as 19 people. He challenges of previous deal they had signed with federal and state government. Probably result in the lower settlement. In poland, the fivemonthold government is boosting business credentials. 574a promised to spend Million Dollars to build a mercedesbenz engine factory in the country. Bloomberg is the splash. This morning, we are tracking what is going on with the dollar. Bloombergs gauge of the dollar is common from their lowest level in one year after San Francisco fed president said he would support raising rates next month, provided the economy stays on track. Want is a likelihood because we are never supposed to talk about what will happen and we look at live data between now and then, in my view, yes, it would be appropriate given all of the things we talked about to go in that next step, but a lot can happen between now and the middle of june. Is pushing back against Market Expectations on rate hikes. Joining us is jim wreckers, editor and author of the new case for gold. Goldys the recent rally in is not a gold story but the dollar store. Great to see you again. It is a dollar story how . James they made the dollar price for gold is up and down, so it was about 1900. Every though from the dollar, look at the fed dollar index. It is no coincidence that the dollar goes high when the dollar is low, so the question of gold is do think the dollar is going up and you dont typically one gold and if you think the dollar is going down, he went gold. Betty people do not buy gold because they are making a better dollar. They are making a bet james gold is up 22 this year but it is up more for currencies because those currencies are down. More thanally up others. Not inold as money and terms of dollars but weight. The dollar price could be a lot higher, so you do have to look at it in terms of the currency if you are an investor. Mark how closely do you look at open interest . We have a chart here that shows open interest in gold and futures that have risen to the highest level in five years. Are shows that traders expecting further increases. Is that your way of looking at it . James i think it is important data that i dont exactly describe. To me, it is the ratio of paper gold to physical gold because those futures are sent unallocated forward and market association. That is supported by a diminishing supply of physical gold. The Worlds Largest gold refineries said they are having trouble finding gold and making it more. And they are selling 10 times the weight to china and they are having a problem sourcing it. I see more and more paper gold supported by less and less physical gold supply and that will tip at some point. You will the mother of all short squeezes. Mark talk me through this shanghai accord and why it is the apex of your investment thesis right now. James this is the sideline of the g20 summit in february in shanghai. China needs help. China is slowing down and the u. S. Is slowing down, so you need to cheapen the chinese currency. In august 2015 and 2015 in early 2016, it was dangerously close to global panic, so how do you get without [indiscernible] the answer is to make the dollar in the u. S. Cheaper and stronger currencies in china. The europe, u. S. , japan, all would like to see that because of inflation, but you cannot have that. Other countries have to get stronger. I see the yen going to 100, the the going to 1. 20 and chinau. S. Cable kind of the unchanged. It china devalued, it would be against the euro and yen, so you look at the body language of Christine Lagarde at the Spring Meeting just couple days ago, theyre threatening and saying, do not you there do that and the yen has to get stronger. It is their turn for the currency. Betty i went to get back there, there is the case but as you mentioned earlier, we are way off of our highs and gold. James down about 20 . Betty if you were to own gold, he would have lost a lot of honey. James it is important for investors. Is the bestperforming asset of the 21st century. It outperforms every stock and bond index. 2015, if you011 to want to take that, it fell 45 . That it was below for the dollar and this goes back to the currency wars. The dollar did not have to get toonger, but if you went give japan and europe relief, which they did in 2012 and in june 2014, if you want to do that, you have to have a stronger dollar. The dollar has to get stronger and that took down the dollar price of gold. Now we are getting a weaker dollar, stronger euro and yen, so now a stronger dollar is on gold. Betty at that time, everyone thought inflation was going to be rearing its head. James inflation is another way to measure a cheap dollar. Betty good to see you. James rickards. Mark still ahead, we are , cbs,ng Time Warner Cable and more on how their shares are reacting, coming up. Lets head straight to the markets where julie hyman has the latest on some of the big media earnings that have come out. Topping the list, as well as time warner. I am reporting similar things. Cbs coming out with firstquarter earnings beating analyst estimates, in part because of the super bowl and grammys. Sales rising by 10 and ad sales of broadcast networks at 49 with affiliates up 2 . You back out the super bowl, they still sought sales, soin the ad those shares gaining. Time warner also trying to rely on sports, at least in part to boost numbers. Firstquarter earnings far above analyst estimates. The company also getting more affiliates, much like cbs and a 5 increase in advertising and revenue as well with a rise high distributors like at t and comcast with those shares up in the same neighborhood around the percent. Related to media also, we have live nation out with numbers today. Lets start with msg networks, owner from the spin off of Madison Square garden with arias tv networks, revenue their beating estimates and earnings rising by 16 . Ad revenue were helping the we will end with live nation quickly and that Company Coming out ahead of estimates. Media stocks rising by about the same percent today. Mark thank you. We will have much, much more next hour. Cbs chief executive les moonves will be on bloomberg, coming up at 11 00 a. M. Eastern. 4 00 p. M. In london. Betty and we will have oil inventories. We will be back. Live from bloomberg World Headquarters in new york and london. I am betting the with mark barton. A quick look at the u. S. Markets trading with Oil Inventory numbers. We are again in the red and bigng off the lowest the earnings day. We are looking at the second day of losses. Interestingly enough, it looks like the s p 500, if we continue with the clients, we are going to be raising the entire game for 2016. Julie hyman at the market desk julie more on oil numbers. Update build more on oil numbers. Julie eight they build on oil numbers. Our survey was for 560 6000 barrels and bloomberg users survey was only looking for a build of four point 2 Million Barrels, so this is more than doubled that estimate that we saw. We are looking at gasoline inventories which were forcing to have a drop but they have the game up 500 36,000 barrels. They did see a drawdown of 1. 3 Million Barrels with an uptick atu. S. Refinery utilization 1. 6 and we will be looking at the production numbers as we continue to digest what all of this shows. Oil there on your screen. I want to look at it on the bloomberg because it is more of an updated number. Excuse me, we are seeing a little bit of a leg downward in oil last get these numbers coming out. As we frequently talk about, it takes a little while to digest numbers but coming up highs sharply and showing the reign of about 1. 5 . Oil has been on a pretty steady uptick since the lows of the year have seen a big recovery that we have been watching. That helps contribute to some of the gains we have seen an energy stock. It has been a rough go as we start to get earnings numbers from companies. I will continue to look at these numbers, particularly the production part, but that built of 8. 2 million of barrels of crude oil definitely a surprise versus the estimate. Betty we are seeing this decline in oil. See why so much. Lets get to first word news with vonnie quinn. Vonnie britains government valley to take valley to take unaccompanied syrian children. David cameron says children who registered in greece, italy or france before march 20 will be eligible to come to the u. K. No word on how many children they will accept. The new York European Union agreement on refugees is having a major impact with greece looking to take and 3500 last month and that is an 87 drop from march. They r

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