Transcripts For BLOOMBERG Bloomberg Markets 20160922 : vimar

BLOOMBERG Bloomberg Markets September 22, 2016

Of trading and we check where markets are in a moment in a couple of moments. First, we will head to your interview. Very good. The time now is to pass the transpacific partnership. O approve the trade deal i spoke earlier today with him. You have to remember we did not manufacture anything but when we look at trade eements, we are looking at through the eyes of customers and they tell us they need to be able to hit the markets covered is important to them that they need market access, some of the complex be taken out of International Trading rules. Is why we are supporting ttp. You have got a hub in china. It is pursuing a trade deal. Case forild your passing ttp, how integral is the fact china is working on the other side of the pacific on a deal of its own . That is true. Negotiating and we believe it is a Good Opportunity for american businesses and American Workers. If the u. S. Is involved in setting the trade rules for that part of the region, we believe things that are important to us like labor coverages, environmental issues, those areal property, the things they think the worlds best suited at the u. S. Takes leadership in ttp. David let me ask you about the optics of speaking out the way you are. Those who oppose the deal say this will intrinsically benefit big corporations and you are at the head of the big corporation. Are you worried your giving graft to those critics by being so vocal about it . This is an issue where we have to do what we think is for our company, our customers, and our country. Believe this is about being able to reach the emerging markets, that the economies are continuing to grow, that this is actually a job creator and not a job killer as some portray it to be. David i think of your career. You started out as a College Student working at night loading trucks. Would a younger david have understood the indications of the deal . At that time when i was 18 years old, i would not have. It is one of the reasons not only are we having discussions with our customers, showing them deal, butages of the also talking to our employees and letting them understand the importance of it. A key fact for us as a company that we 22 packages process across the border of the united states, creates another job for ups. Come our employees can relate packages to jobs and that is the point we are making. David are you surprised how politicized this has become . I am surprised he little bit how vocal the opposition has been. It is up to us. Those of us who understand the trade deal in the 95 of the world passes consumers, the key to american businesses and American Workers to be successful is to find ways to serve the markets. It is up to those of us who makeve in free trade to sure we get our message across and that is what i am doing. David we had that provision a few days ago on secretary of the treasury said it could be a turning point in the conversation for Corporate Tax reform. You reacted to that decision . Know that it has a direct impact on us with the apple decision. I can tell you we absolutely support content tax reform in the u. S. We are looking for stability for a permanent rate and looking for a competitive rate, i think it and for a5 , competitive, territorial tax to where companies can bring back profits to overseas. We believe this is a big issue. We understand to get that competitive rate, we would need Corporate Taxder base and we are in support of that. Is anothernk fundamental aspect of working with the u. S. Government, that we need to change. Speaking with me earlier today. With a check of the markets now. Was if you minutes ago. Affect, with fed the language in a statement saying risks are balanced. See the path appears to investors to be a little more clear for the moment. Take a look over the course of the day. We had a depth. Stocks have recovered and it is not clear what the dip was all about. Moment, it looked like things would go south. What cap stocks afloat and what has been a big source of strength not just today but over the past several months, largecap techs shares. Trading records today, apple is rallying once again as well. That is a big heart of the gains we are seeing today. Laggards, those dragging the most on the s p 500, a mixed bag. Rallying on the week. Microsoft, it looks like it is doing well today. Yahoo , we learned in the last hour, confirming that 500 million accounts have been affected by a hack attack. Higherually trading perhaps on the sheer volume of this. We were saying in the newsroom we did not know how many accounts it had. It was not something it had revealed in the past but shares are since lower and off by. 4 as we continue to learn more about this attack which yahoo said happened in 2014. Verizon learned of the attack just two days ago. Money thank you for the update. Lets get to Mark Crumpton in the newsroom. Mark the police chief of charlotte, North Carolina, says he plans to show video of an officer shooting a black man but the video will not be immediately released to the public. The police chief told reporters the video does not definitively the 43yearold plane the guide anyone. Police fired tear gas last night at demonstrators are one man was shot and critically wounded but Authorities Say he was not shot by police. Governor of North Carolina has declared a state of emergency in charlotte and the mayor is considering a curfew. With thee partnered state of North Carolina for Additional Resources to care for our city. And to secure the safety of our citizens. The safety and security of our community as well as Law Enforcement officers remains our top priority. Police say he ignored demands to drop his gun. Neighborhood residents say he is holding a book, not a weapon. Bank of america, wells fargo, duke energy, all told employees not to go to work today. President obama will veto a bill allowing 9 11 victims to sue saudi arabia. That word is from josh earnest who says the president believes the law could lead u. S. Officials open to retaliatory losses in foreign courts. American general says the rocket that landed on a military base in military base in Northern Iraq cause human skin to blister. That general joseph made disclosures at a Committee Hearing today. Yesterday, Islamic State may have attacked with chemical weapons. Contained sulfur mustard blister agent and known was injured. Yahoo extending an advocate invitation to address Israel Passes parliament message. Said in return, he would like to address the palestinian legislative council. Palestinians have adjusted Prime Minister netanyahus pass offers for meetings saying there is no point given his hardline positions on all core issues. Global news 24 hours a day power by more than 2600s and analysts in over 120 countries. I am Mark Crumpton and this is bloomberg. Vonnie still to come, they start to take their money away from real estate and put into technology. We will explore if the Chinese Government is ready to step in. And a quick look how markets are faring now. We are trimming some of the gains. The dow is up. 6 . The s p 500 is up 14 points there and the nasdaq winner once again today, up. 8 . This is bloomberg. Isny vonnie this bloomberg markets. David a raise a concern on german politicians, great people familiar with the matter. The u. S. Seeks a 14 billion fine of deutsche bank. They handle the Mortgage Securities during the 2008 financial crisis. Tesla suing governor rich rick snyder, challenging a 2014 law that says automakers can only deal of franchise dealerships. Was denied for licenses to sell directly to consumers answers Service Vehicles in michigan. Willanadian trucker group radar sticks on the back of a tractortrailer container and updates its owner on temperature, location, and other data or it the device is part of the ceoss campaign to use the patent and expertise for new industries. That is your update. Vonnie the line between chinas Financial Sector and Real Estate Market might get more blurry. The company is starting to look like shadow banks. Me now is betty liu. Thank you for joining us. Why are companies doing this . It is bizarre. How ithand, you can see makes dan makes sense. Growing by leaps and bounds, it is a Good Business opportunity and you can make quite a nice profit margin doing that. But it is bizarre. Property it doesnt seem like it would comply with market regulators at all. Neither one, we are not familiar with them at all. They are very domestic. China Greenland Properties is one. They are justifying this by saying it helps diversify their business because the property sector is in a bubble about to burst and theyre looking for ways to safeguard against a total bust in the property sector in china. David is this doing anything to feel and china . Is it you want to be totally cynical, there could be something to various because here we are, Chinese Property Developers loaning money to investors who then put that andy into real estate continue to increase property prices. So there is concern about that. Part of the reason why is also because it is not transparent who these investors are, what it is being used for. There is very little transparency around that. Vonnie doing anything about it or expressing the wish to do anything about it . Itthey are keeping an i on but are not doing anything about chinese Property Companies going into internet financing or online financing. Down on thecking Online Finance industry overall because it can become a very dark shadow banking type of market. As we saw in april, the government crackdown on a lot of lenders. The names are funny. Of stuff going on. They have cracked down but the market is over 2 trillion now. So it is huge in china. David cohen the currency decisions a few months back, there was a push and we have seen that more widely than the central bank in china. How are they navigating that . Carefully. But they are moving in the right direction and trying to be more transparent. You see that from the top down. But there are many problems. Yesterday, we saw the news out giving the clearance to be a u. N. Trading hub. Banks can do this but they do not want to do it or they are reluctant to probably because they disclosed so much information, they are worried about some of the downfall and the lack of transparency on the side. Digesting, as we are today, the fed market excuse me, the fed and the impact on the market. Also, the japanese markets coming back online. Will see reaction, kind of underwhelming the market, surprisingly. It was justticed above 100, just below 101. All right, betty liu, thank you. Andd still ahead, options sites. Looking at trading in the s p 500 etf. Why our next guest says it is time to buy. This is bloomberg. David this is bloomberg markets. Time now the options insight in that is julie hyman. Julie thank you. Joining me is tim, lead strategist at delta derivatives. Tim, we have now seen a rally for a couple of days in the wake of the fed. What kinds of indicators are you looking for in the Options Market as to whether this will continue . We are seeing a stall out. We had the monster rally yesterday and this morning. We saw the vix briefly traded below 12 and rate above here. Complacency is back. I think this has stalled out and we may have a countertrend pull back here given the veracity. Fundamentally, what are some of the other statement signals folks will be looking for for the markets in the next several weeks . Of the big out earnings cycle, certainly. We have had earnings decline. Stocks are not cheap at this level. By lowering gdp estimates, maybe that is it for a while. Cheap money, expensive stock, unit and yang here. Going forward, maybe something irelandurope, certainly and bank of japan, kind of disappointed in their Monetary Policy when they came out of it as well. Are those risks big enough to start to put on protection here . Absolutely. Will getot think we that simple because money is cheap but once it begins, certainly, they will taken minimal and that may come into play here. Oil heading lower has in the linchpin behind the beginning of the rally. I think you could see 3 pullback even the rally we have seen. It certainly would not be anything technically damaging. What kinds of traits specifically would you be putting on . I am looking at using the s p 500 etf. Looking at the vix, the lowest we have seen a long time. Shorterterm options cheaper. Next week read it to 17, trading under in essence a nine vix here, only up 50 basis points. Just looking for a pullback. A 1 pullback, i like the fact that you can get in at the cheapest level in a very long time. I believe this is the biggest twoday rally since july with the s p 500. We may see that kind of pullback. Thank you for talking to us about what is going on in the markets now. Vonnie thanks. , covering the conference, lets dip into the bloomberg terminal. I want to show you a chart that you can access. Shows the performance of emerging markets particularly in the last couple of days since the Federal Reserve did nothing much, we see a continued markete for developing shares. David it looks like that rally in emerging markets etf on the heels of the Federal Reserve decision yesterday, widely suspected the fed would not do much yesterday. Janet yellen saying the economy looks pretty good, perhaps we will raise but not yet. 18 . It continues for emerging markets, at least for now. We care currencies do not hurt and mexico is feeling a lack of rally from the Federal Reserve. David a new chart hourly. Still ahead, we will dissect the housing data and examine why. Ome sales resale and economists will join us from washington. This is bloomberg. Matt from number growth headquarters in midtown manhattan, you are watching bloomberg markets. I am matt miller. Joe i am joe weisenthal. Matt lets check out the headlines with Mark Crumpton. Rahm emanuel and chicago will offer details of a new more comprehensive Public Safety plan. His speech comes as the nations Third Largest city indoors a troubling spike in gun violence and a federal investigation of its police department. Mayor emanuel has announced plans to add 1000 loves, expand use of body cameras, and ordered mandatory deescalation training for all police. Security camera footage from the restaurant in new york shows bombing suspect Ahmad Khan Rahami pulling to suitcases from where one of the bonds exploded. Prosecutors have charged ronnie with setting a bomb in new jersey, and two in new york city. One of the devices in and had did not explode in manhattan did not explode. Authorities are working to restore electricity to puerto fire at a power plant blocked out the entire island. A state of emergency has been declared by the government, which canceled classes at Public Schools and universities. Hospitals also canceled elective surgeries and nonappointments. Most Government Employees in one to were given the day off. In minnesota, a judge has scheduled a closed hearing next week to deal with disputes over the estate of the late rock superstar prince. The order does not say what the disputes are about, or which potential heirs are involved, but it says oral arguments will be heard next thursday. Prince died from a nexen of Drug Overdose in next accidental Drug Overdose in april. Day, i ams 24 hours a Mark Crumpton. This is bloomberg. Matt thank you very much. Markets close in just under 30 minutes. You can see green on the screen. Whether you are looking at the nasdaq, the s p, or the Dow Jones Industrial average lets go to the Nasdaq Market site where Abigail Doolittle has more on what is gaining. Abigail i like that green on the screen. It is your kind of a day, the big rallies being driven by tech. The nasdaq is on pace for a second record closing high in a day or two days, and behind us, technology alphabet, apple, amazon. We have both alphabet and amazon trading at record highs. As for amazon, the stock is at record high analyst jim kelleher saying he likes the amazon prime services, says it will help amazon be the dominant player in ecommerce ecommerce. He also likes the cloud unit and set a 935 price target, suggesting amazon could climb higher. Now, but backord in february commit was off 30 for the year. Is there an outlook that sees mazon getting choppy again . Abigail interesting the, we go into the bloomberg and look at 35. 37 it is a chart that shows a beautiful bull run after amazon reported a better than expected april quarter, and lots of twongth being driven by bush congestion areas. At the end of august, the uptrend started to break. Interestingly, it happened on an area of bearish congestion. The sellers are more dominant there. We can see that even on a record high, it has been cap by the ascending selling pressure. This may suggest we could see amazon dropped back down toward of bottom of the area congestion, 750, and if the congestion happens to break to the downside, amazon could go even lower from there. Perhaps it will be choppy for the shares of amazon. Access theder to ,harts, you have to type g btv and the number, but if you want to library, type in matt miller, and it will autocorrect to the library. Abigail he is proud of that one. Matt i that that is something i can tel

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