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tv   Whatd You Miss  Bloomberg  November 21, 2016 3:30pm-5:01pm EST

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mr. trump also met with obama governor mary fallin. she says she has not been offered a post in the incoming administration but she has been mentioned as a possible secretary of the department of the interior. in chicago, hundreds of workers at o'hare international airport arguing their strike until after the thanksgiving holiday. they say they want the public support and do not want to mess up anyone's holiday plans. the group, including baggage handler, cabin cleaners and janitors, plans to the picket lines november 29. the want union rights and a 59 -- $15 hourly wage. they're leaving the country but they are not heading for the united states, they're going to chile.
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south america's wealthiest nation is now taking in immigrants at a similar pace to the u.k. relative to their populations. is allowing all priests to absolve the faithful of what they call the grave sin of abortion. he is extending indefinitely be special permission he granted during the just ended only year of nursing. officials describe the announcement as an extension of the church's mercy. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg and -- bloom berg. ♪ >> where 30 minutes from the close of trading here in the u.s. today,ocks on the rise
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while oil jumped on optimism that opec will reach top output. president-elect donald trump is on the hunt for the next treasury secretary and his meeting suggests he's looking for a candidate with the wall street experience. we will take a closer look at the top contenders. all eyes on europe where the rising populist -- will italy or france the next shoe to drop? top of mind as three to may begins to lay out her plans to leave year opinion. we will hear from jeremy corbyn later this hour. let's kick things off with the major indexes and equities. if that they are all at record highs. bloomberg abigail doolittle is standing by. >> pretty amazing. we almost looking at quietly bullish trading. there's not a lot of exuberance but very bullish because we have
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the three major averages all trading at record highs. basis, a closing record high. has happenede that since august 15. the top performing sector, energy being boosted by marathon petroleum along with chesapeake energy. behind this we have a nice rally in oil. isay up nearly 4% as opec saying there close to working on a supply cut deal. as for the top performer, marathon petroleum. we have a separate situation outside of oil. elliott management has urged marathon petroleum to split into three different businesses. they could unlock up to $19 billion that his company after it's been out for marathon, oil
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is severely undervalued. as for the macro driver behind all this, let's take a look at the chart of oil. this is a three-year charge of oil. this year we see that -- chaerrt of oil. typically this is bullish. it tells us that the buyers are in control. perhaps this happens again. plus we have what appears to be a bottoming action or perhaps bullish action over the medium to long term. oil appears to be bullish at this time. scarlet: thank you so much. some have described the selloff in the u.s. bond market as a bloodbath and a seismic shift. our rising guesses rising treasury yields can be exhibited to inflation expectations.
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joining us now is oppenheimer fund senior client manager. thank you very much for joining us. certainly the defining characteristic of the post election landscape has been this treasury celebrates higher pretty much everywhere. where is the connection between the election and this? ira: the missing piece from the recovery has not been low rates. monetary policy has done everything they can. now with the population movement, maybe not so much the u.k. but in the u.s. might actually get some fiscal stimulus which could drive growth and inflation higher. i get asked all the time, have the markets gone too far? yearhere around 2% 10 inflation rate. it is probably about right and we are pretty close to that. the lee towards the top of yield range for 10 year treasuries. scarlet: we are not just looking
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at the u.s. but around the globe. it is a global phenomenon. even if we have reason to push yield higher in the u.s. are those reasons justified elsewhere? ira: in some cases. like europe, maybe it is. very stable growth, inflation is known to be modestly higher than what expectations were six months ago. but that does not mean it will necessarily be high. should you have negative 10 year rates in germany, probably not. japan is a different story. there you have a central bank that is saying if you'll gets much above zero week will get -- if yield gets above zero -- it is not meaningfully away from zero enough to act. but if that threat is realized and they come in and buy 7 -- by several hundred thousand yen -- having risingp
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bond yields in a lot of the developed world. the emerging world is much more idiosyncratic. get this fiscal stimulus in theory and then we get higher rates, higher inflation expectation. let's talk about the fed. do, how does a change their timetable, and how does it hurt the economy? first?ppens after this effect? ? yields, another getting basis points close to 3% you can see a significant slowdown in the housing market and maybe purchase of things that could be interest-rate rate sensitive. automobiles, for example. if that were to happen you can see the federal reserve take a more cautious stance being reluctant to hike. everything stays long in the state that it is, even with bond
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yields 100 basis points, 1% higher than they were a few months before. then the federal reserve would likely continue to hike. problem is we have a lot of uncertainty. the market is pricing in a lot of good news. we do not know. do not know what any infrastructure spending out of washington will look like. we don't know if it will be inflationary because there are other global and domestic factors that are impacting inflation. at some point the market will find an equilibrium. then we will wait for the actual news to be realized or not. pensioners should not be too early in celebrating just yet because as the yields rise, they are finally getting some income. income fromg treasuries plunged. it has been a slippery slope. bond pricesep his down and yield higher you can see a turnaround. ira: you could. and if you have additional
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fiscal stimulus, which means higher deficits, you will have more bonds in the market. more volume to do that. one of the things this has helped is how it has health insurers. a lot of asset liability managers who need body yields -- 5%, you can find those now. that is one of the reasons it has been tricky for the 30 year yield to get above 3%. 3%you ask me in 2007, we see 30 year yields, i would say no way. but this backup in yields does help a lot of those managers. joe: people have been asking for fiscal stimulus for a long time cap -- time. we really could use more deficit spending to boost the economy. now we are at 4.9% unemployment. by some measures, wage growth up to 3.9%.
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if there is a big infrastructure deficit-let stimulus and it ends up competing with other industries in the private sector labor -- construction, housing -- does that help the economy or does it have an effect of boozing prices without actually adding more -- boosting prices without adding more aggregate demand? think that your point is well taken in that come are you going to push wages too high and will you wind up getting a price push on inflation? the answer is probably not. morning, was said this one of the things he noted was the quality of jobs is not there. there is an issue where you wind up with infrastructure spending and more construction jobs overall, assuming there are places where unemployment is still high and underemployment is high, then that would help everyone and certainly help those people.
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joe: so there are places where it is still slacking. ira: that's right. monetary policy cannot help that. ofrlet: there are a lot postelection narratives going on right now, most are straightforward. which narratives do not make sense and therefore provide opportunity for an investor? ira: 10 get that you can wind up with trained body yields that wind up very high. what we have cold normal prior to 2007 -- called normal prior to 2007. the situation where you can get there is where the federal reserve makes changes to their balance sheet and they sell a lot. that is probably the only realistic way. tendso, bond strategists to be famously bearish on bond. every year there rate forecasts are usually too high or the consensus -- the race fall below
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expectations. could we get into another situation where bond strategists , we do not see a bear market when it comes? completelys possible. everyone has been talking about the death of the 40 year bond rally. one of the issues -- one of the inputs to where yields are going to go is where the real economy goes. forecasting that sometimes is tricky because you have shock spirit you have a european crisis in 2011. papernd up having the tantrum in 2013. you have a lot of different issues that wind up making your economic forecasts incorrect, so therefore your yield forecasts are incorrect. but that is a distinct possibility. joe: ira, thank you very much. up, britishing prime minister theresa may says
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the u.k. will be the eu by march 2019. we will have more on the transition with jeremy corbyn. this is bloomberg. ♪
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♪ today bloomberg said that with u.k. labor party leader jeremy corbyn and discussed well as donald at think state intervention alongside private capital can be very good. if you look at the history of states industrial developments in italy and germany, there has been a very substantial state role-played. there is an important role for that. industryng the steel
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by nonintervention is a bad thing. supporting the steel industry by intervention is a good thing because it revives the platform for our manufacturing industry to develop. >> theresa may earlier a dow list calls to avoid -- what would you say in her shoes? mr. corbyn: first of all, make it very clear we intend to make sure there's market access for british companies to have trade and that the rights that have been through european membership will be defended and continued and we intend to work with europe in the future. brexita of the hard -- it would be very damaging. is -- >> is britain headed for a hard brexit? every trade union i
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have met come every group of residents and workers i have met are concerned about it. are we heading for it or not? the problem is the government will not set out a proper timetable for it or the -- for it. all the havoc -- all they have brexit meansis brexit. >> would you support the u.k. leaving the union? it is also about questions of the power of national governments to invest in their own industries and also the power of national government to take industries such as oil companies into public ownership. we do not wish to join an organization which restricts us from doing that. we wish to trade with the rest of the world also have a human sustainable agenda on trade policies as well as and
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i'm not convinced that will be possible. >> i'm wondering how concerned with france. is it a failure of the left that mores seem to be voting in right-wing candidates both in europe and in the u.s.? mr. corbyn: there has been a fundamental change in politics. they have changed a lot over the past 10 years. the parties of the left that supported austerity in 2008 and 2009, then in the case of greece, implementing very severe forms of austerity lost quite badly. as in the united states. what is interesting is the anger of working-class communities at the lack of investment, jobs come opportunities, and the underinvestment in housing and health services plays out two ways. they can either blame
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minorities, as with trump, as with the right all across europe. or they can look to the the left arevices offering, such as a huge support bernie sanders achieved in the united states and the enormous increase in labour party membership in this country. >> the u.k. is considering inviting president-elect donald trump to visit britain on an official state visit. have you asked to meet the president-elect? mr. corbyn: i will meet the president-elect and i will make it very clear that i absolutely and totally deplore the comments he made during his presidential campaign in respect to women, in respect to minorities and the way he saw to blame. hard-working mexicans dropped the country and -- throughout the country and very hard-working muslims. and also the idea can run it, -- race --
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the grotesque levels of inequality that will bring about is not a way forward. i want to live in a world where we do not all go to war or live in a world where we are dedicated to sustaining our environment and our economies so that we do not have these appalling left behind communities, as you find over the great lakes region of the united states. as you find in many parts of europe, and in many parts of our own country. that was u.k. labor party leader jeremy corbyn. time for thes bloomberg business flash. amazon is considering a premium sports package with primary worship according to a report from the wall street journal. they have reportedly been in talks with the nba, elevate -- mlb, and nfl. also even national league soccer games. insurance is buying --
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countryt array into the of japan. a deal could be signed as early as this week. walmart is kicking off cyber monday on black friday. cyber monday is typically the busiest day of the year from my shopping. they say they will have 23 million items on sale online compared to 8 million last year. kanye west is missing out on about $30 million in potential ticket sales after abruptly canceling the rest of his to her. hadrding to live nation, he 21 days left on his to her. he has been taking in more than $1.4 million a night on ticket sales alone, meaning he is leaving about $30.2 million on the table. joe: up next, hedge fund donaldaire when long on
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trump when most of wall street went short. it look at how is that is paying off. this is bloomberg. ♪
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♪ trump's election is pushing shares way higher. they look at that move over the last two weeks. it is parabolic. there the mortgage financing agencies at one point were private companies with implicit government backing for the government took them over. john paulson has been making big bets on these. seeing both agencies their shares more than double in value since the election. anald trump has not given
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specific plan coming to this but investors are betting that he will potentially make it so that their profits go back to shareholders and not just to the treasury. this is something we are keeping a close eye on, certainly something john paulson is benefiting from. there is a bloomberg news story today that take a look at how john paulson over the years has been putting money into lobbying the government over a change in policy directly and indirectly so that the company and shareholders can benefit from the return and profitability to their bottom line. joe: during this limbo state where they are still public retreated but they get paid back. the courts ruled that the shareholders could get the money, the shares can be worth a lot more. scarlet: right now it is a paper game. metals, mining, emerging markets usually move together. but there is a day virgins. jpmorgan flag -- there is a
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divergence. the white line is the emerging market. metals and mining has held up well the emerging markets have gotten clobbered afterdivergenc. yields of these lines going together. potentially that will need a lot of metals and raw material but they are not liking the emerging markets because of worries about high rates. it is creating an interesting divergence. the radically an opportunity for traders to bet on those lines. scarlet: i wonder how many have u.s. debt. we should figure that out. scarlet: take a look at the major indexes. four minutes ago before the close. we should figure that out. and highs for the dow jones, s&p 500, all-time high for nasdaq. this is bloomberg.
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♪ scarlet: we are moments away
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from the closing bell. everything planning towards record highs. day becausestraight of the demo trump election victory. i'm scarlet fu. and i am joe weisenthal. welcome to our viewers tuning in live on twitter. on twitterch everyday from 4:00 to 5:00 p.m. eastern. scarlet: the thing you need to mention when we begin our market minutes is record highs for all major indexes. joe: green everywhere. you go inside in taking look at a look at the different sectors, what is interesting is it is only 10 out of 11 that is higher. real estate has now turned negative. but the big winners were certainly the ones that got pounded over the last couple days. and is he shares up by more than
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2%. utilities higher. technology, both of which has been punished in the days after the election. utilities along with real estate companies not doing well. .echnology seen as suffering joe: interesting to see the tech stocks do well after underperforming. scarlet:-shares falling as much as 16%. shares falling as much as 16%. there was a change in leadership. joe: let's take a look at the bond market. first a look at the two and ten year yields. not a ton of activity. really looks like the december rate hike is a more a lot if markets are to be believed. 10 year yields down a little. i want to take a quick look at the french 10 year yield.
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little lower on the day. they were lower earlier in the day. they had the first round of the republican primary. they have a next round weekend and but he is expected to win. very conservative politician who would probably cut the government sector a lot. bond markets lagging a little bit throughout the day. scarlet: it is a reminder that political risk is out there. the dollar takes a breather. the euro ending a 10 day losing streak in which it lost 5% of its volume. -- value. the pound today saw a sudden spike in its movement. in am inute4 to 125 -- a minute.
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people wanted to credit that to theresa may but it came hours after she spoke. it seems implausible. it is a reminder that we going to see more of this. a quick mention of commodity currencies, all strengthening my rise and underlying prices of metals and oil. south africa proposed labor law reforms a few days before a credit ratings review. joe: finally, some interesting moves on the commodities front. rubber rallying today. thought to limit production in thailand. zinc continues to gain. crude having a huge game, rowling nearly 40%., fallying nearly that opecg optimism will get its act together into a deal to limit production.
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crude may be heading back towards $50 a barrel. we will continue to monitor that one. let's take a deep dive into the bloomberg. you can find all of our charts using the function at the bottom of the screen. i want to focus on the trade weighted dollar which -- hilary clark and out's for coming up with this. under reagan and george w. bush, hart,ed portions of the c they both unleashed fiscal stimulus. but the trade weighted $ bigger rally under reagan. it could be because the economy was in worse shape than when w. started spending. bush, the trade weighted dollar was pretty high so there is not a lot of change to be
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had. the question is where we now as we get ready to perhaps unleash more fiscal stimulus? trump is inheriting more like reagan or george w. bush? joe: we have the perfect guest for that. kit, global strategy. thank you very much for joining us. i remember going into this year, everyone was talking about divergence and how this would be the year of the dollar while japan was going to be on hold. it feels like maybe now that is the story for 2017. europe has all of these political risks, holding the euro back, japan will keep its long-term rates down. now the bull case for the dollar is very clear. do you buy that? bit more to go but we be setting up for the last to rob. the u.s. -- the last hurray.
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the u.s. economy does not have much slack. we'll get rate hikes to a higher peak from the fed if president trump delivers on what people currently think they have inte rpreted from him. will get a stronger dollar. maybe not universally stronger, but we can look forward to a for the spike. at some point stimulus will end up with more steamy -- we do not know the president what trump's fiscal stimulus will look like. but will be more like reagan or more like george w? kit: i think the stimulus is more like reagan. when we had reagan stimulus
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coming from a weaker economy we also -- i do not think you'll see double-digit, that is my number one forecast. that is the difference. see the kind of real interest rate moves we saw with reagan as well as the really supercharged -- i think we everything style of stimulus but not as much of an economic pickup available to us because the unemployment rate is under 5%. i think the fed will tighten because of that but i think the 1980's are a dim memory in terms -- fed funds are still unlikely to peak above 2%. that is so much lower than it was in the 1980's. with unemployment rate of 4.9% and wage growth already picking up, essentially it is a lot easier to get inflation here than it is to get actual growth? our people missing that? --: there's something being
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,n the foreign exchange market people are going with the flow. it has been incredible how fast fast a consensus has developed around the idea that the fed will hike in december, they will hike twice, this is good for the dollar. these kind of moves have a tendency to overshoot. we can talk about it in six months time, it will be much more complicated. scarlet: if you look at it go, odds ofw people -- 96% a rate increase in december. you are looking at 100% odds. how do you explain this incredible rush to a new consensus about trump? , even a couple weeks ago trump was a candidate of war risk -- of risk.
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why did things change so fast? people need a narrative and they found one quickly. of looking element at trump against clinton and the whole come look at the stories between them, the nastiness of the campaign, and focusing on what people wanted. only one the election had happened to people turnaround to a degree and say whether i like mr. trump or not, here is his economic plan. significantly,s , if heuts income taxes has infrastructure projects, that is probably good for share prices. started, yields moving higher. people were skeptical shut up quickly. scarlet: why aren't people taking that to the logical conclusion? at some point that will be a
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drag on growth. kit: it will be and we will have to see where it goes. we are relatively optimistic about the first year or two, so we should get more growth. we will have to see how much he gets through congress. all of this will be tempered by of right wing part congress. the republicans will not give him a completely free ride, i don't think. but you're right, this is going to come back. i do not think we can have a really long economic cycle with much faster growth. hingt is two points somet while othe4rs do nothing -- while others do nothing, that is enough to take the dollar more slowly from here, bond yields slowly, equity markets not get over-freaked out by that. i do not feel 100% confident
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that anything happening right now with all this uncertainty. t, next we're going to talk about interesting stuff happening in your. this is bloomberg. ♪
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mark: let's get the first word news. breaking news this hour, we are receiving reports of a magnitude 7.3 earthquake hitting about 156 miles from tokyo, japan. a tsunami warning has been issued. is magnitude of that quake 7.3, about 156 miles from tokyo and a soon on a warning has been issued. we will continue to follow this story and bring you more developments as soon as we get
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them. president obama says he intends to give trump is to lead the u.s. and set his own agenda. he reservest says the right to reinsert himself into the public debate if he thinks core american values are at stake. mr. obama spoke in peru after a of asia-pacific leaders. the federal election commission is asking mr. trump's campaign to correct more than 1000 errors in his latest financial filing according to a report by cnn. concluded mr. trump's campaign accepted more than $1 million in donations that violated laws. syria's rebel-held aleppo have gone, quote, from terrible to terrifying and now barely survivable, end quote. and prices are getting higher and higher. gas for cooking is
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unavailable in most neighborhoods. new research reveals another decline in dementia rates but rising numbers of older americans may halt that trend of most better ways are found to help keep brains healthy. the rate of outsiders disease alzheimer's disease dropped. news 24 hours a day powered by more than 2600 journalists and analysts in over 120 countries. i am mark crumpton, this is bloomberg. marcus mentioned the magnitude 7.3 earthquake that hit. now strengthening. 110. now below 110.51. i should say strengthening. this is the dollar dropping in
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value versus the japanese yen. earthquake 2011 there were a lot of companies repatriating cash from overseas, causing the yen to strengthen. perhaps anticipation of that. "what'd you miss?" investors see bonds is one way to address concern that the reforms willr's become the victim of a rising populist move. let's take a deep dive into the bloomberg. you can see that the euro has fallen more than italian sovereign bonds, perhaps on concerns about upcoming political risk in italy and elsewhere. we're back with kit, global strategist. kit, lots of political risk coming up in europe in the weeks and months and years ahead. 4alian referendum on december
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and a rerun of the austrian presidential election. would you say that investors are adequately hedged against what is coming up in europe, or could they be blindsided? kit: i think the entire referendum only blind-sides people now. opinion polls have been overwhelmingly in favor of a no-vote. i guess the betting agencies have struggled for the last few elections, they will conclude this will likely be a no. but it is equally unlikely that resides. he does not have to do anything. this was a referendum about constitutional reform. it does not automatically trigger a response. i think the market is positioning itself for a bad , butine come uncertainty not much else happening if the guy in charge says, oh, i lost, and carries on. he had said at one
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point he would resign if he lost but he backpedaled. the ecb's next meeting comes four days after the entire referendum. does that meeting rests entirely on what happens? kit: not quite but they will want to do everything they can not to rock the vote. he will do whatever it takes to stabilize markets and keep things under control and whatever it takes probably does mean some form of stretching out bond buying. is last thing you would need european central bank saying we are done buying bonds soon, we're going to stop in march. they will have to do something to stretch that out just to calm sentiment down. that is something that has changed over the last few weeks.
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thisns that argument at point. joe: let's talk about france. we have a first round of the republican primary this past sunday. not ainner is seen as populist at all. some are concerned he -- overall the consensus is she probably cannot win but we do not want to see -- say that after we keep getting egg on our faces. how do you handicap what is coming up? kit: my bet would be the euro hits its low close to the election. i do not know if we are going to be confident unless we get overwhelming opinion polls. oneibly the same for these spreads between french bonds and german government bonds. this could be a straight fight between right and left in the sense that you have a big state
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partyst, nationalist candidate gets a right-wing, smaller state, more conventional right-wing economics candidate. is you also have the danger that in the first round we get possibly someone from the rogueist party, but two elements coming through. we could have five candidates in total quite easily. thenational front holding biggest single vote in the first and we allg through, assume she comes in second. i will need a drink before that. father 2002 when her won, the left came and united around the conservative challenger. and he lost convincingly. do you think there is a risk
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that will not happen as cleanly this time around? how you define cleanly. there is a danger it is not as clean as it was then because that is where this populist movement comes from. isthe main opposition someone who is keen on a small state, more conventionally conservative in the anglo-saxon word on the economy, there are a lot of people on the left in a country with a history of big government, there are a lot of people who will be very uncomfortable with that. it will be tricky to generate that grants role of we have all got to unite against the national front. kit, thank you for joining us, always great to get your perspective. up,let: coming hewlett-packard is growing on its faster growing i.t. unit. this is bloomberg. ♪
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♪ i'm scarlet fu. hp ink and hewlett-packard enterprise reported quarterly earnings tuesday. the business is split into two companies. hp enterprise is the focus of today's segment. let's take a look at the revenue breakdown. it's enterprise group which includes servers, storage and networking makes a 51% of sales. , which will segment
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be spun out and merged them is 37%. stock will be merged with micro focus. hewlett-packard enterprise is cutting costs and restructuring to increase its earnings growth phases macroeconomic challenges as well as tighter budgets and threats from the public cloud. s --ett-packard enterprise' this is the yellow. it is a growing segment within the confines of traditional i.t. infrastructure. 2019y reach $20 billion by as traditional i.t. spending declines. hybrid cloud model uses a mix of private and public cloud services. hpe predict this will become a $100 billion market. operating long-term margin target may be driven by improved cost structures rather than sales gains. the service segment could it's
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other in timing and magnitude of that expansion. it has paid off for shareholders. hewlett-packard, the orange, and blue, are both beating the s&p 500 over the past 12 months. hewlett-packard enterprise's overall strategies to be a small, nimble company focus on hybrid cloud technologies. companys the hardware which is the legacy printer and pc business. we will be tracking both companies earnings when they are released tuesday after the u.s. closing bell. joe: time for the bloomberg business flash. mylan is read -- reejcting ofate judiciary chairman iowa has scheduled a november's session toemebr 30
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figure out how they gave discounts on epipen, potentially deny the government millions. tesla says it has completed its acquisition of solar city, a purchase intended to help chairman elon musk fulfill his vision for a viable one-stop shop for clean energy. the $2 billion deal integrates the maker of model s, the upcoming model 3 with solar panels. that is according to people familiar with the metal. they could sell shares in paris next year but no decisions have been made. it could be worth about $4.8 billion. that's the bloomberg business flash. scarlet: coming up next week the latest on why his and bill gates'investment
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companies are building up a city of tampa, florida. this is bloomberg. ♪
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mark: it's time for first word news. former massachusetts governor scott brown says leading the department of veterans affairs is the toughest job in the cabinet. he indicated he is under consideration to lead the embattled agency following a meeting with president-elect donald trump. he also met with oklahoma governor mary fallin. she says she has not been offered a post. hillary clinton lost the race for the white house, but a new poll finds voters preferred her campaign to that of mr. trump. just 30% of those questioned in a new survey gave mr. trump an a or b great for his campaign. 35% gave him an f. 43% give secretary clinton an a
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or b. that is the first time in history of the postelection poll that the losing candidate earned a better grade than the winner. citing aiated press u.s. monitoring service that reportsilitant postings and islamic state affiliate claimed responsibility from today's suicide bombing inside a shiite mosque in afghanistan. it killed at least 32 people. dozens more were wounded. it was the second large-scale attack targeting the minority shiite in the afghan capital in over a month. japanese peacekeepers have arrived in south sudan with expanded powers. for the first time since the end of world war ii, the soldiers will be allowed to use force to protect civilians. postwar constitution forbids the use of force in settling international disputes, but the government issued a new interpretation. global news, 24 hours a day, powered by over 2600 journalists and analysts in more than 120 countries.
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i'm mark crumpton. this is bloomberg. scarlet: thank you. we want to recap breaking news from earlier. an earthquake with the culinary magnitude of 7.3 struck off the coast of fukushima prefecture in japan, hundred 56 miles away from tokyo. a tsunami warning for waves up to three meters has been issued, and it's a reminder of margin 2011. we are talking about how the yen strengthened on the headline. we've now seen it come back a little bit, and the dollar is a little changed versus the yen, but we did see dollar-yen break below 111, and as low as 110.45. joe: let's also get a recap of the rest of today's market. green across the board, record highs on all the major indices. record highs everywhere you look, nasdaq up, that was the
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big gainer with tech leading the way. s&p 500, the one category that didn't do well was real estate. some of these yield bond proxies that were so popular up until very recently continue to underperform since the election. scarlet: joining us for more, tampa bay lightning chairman and governor just that it -- just eff vitick. his company had an average annual return of 18%. great to see you. >> happy to be here. scarlet: i'll lasted to put on your hat from a previous life and give us your thoughts on this environment after the election. we seem to be in a situation where investors are giving the incoming president the benefit of the doubt, praising the economy. what do you think we are seeing? >> i'm happy to be here on a day when the indices are hitting new
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highs. i think one of the things going into the election, there was a great deal of uncertainty, a great deal of pessimism. i think that would've been a rally no matter which candidate won. is 0-- ity, there wasn't expected that president-elect trump was going to win. there is a major dislocation in the market. in the days following the election it seems like half the stocks were up and half were down, an interesting time. the picture is decent economic growth, but it seems like a good backdrop for stocks in the economy. joe: just from appear business perspective, putting aside the market for a moment, if one looks at trump's rhetoric during taxesmpaign, lower regulatory rollbacks,, more spending on infrastructure,
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there are also things in there that most business people like, such asn't talk about trade, immigration. said, mostly people tend to be focusing on the good and ignoring the fact that we still might get a more populist attitude on trade. why do you think that is? >> big picture said, mostly peoe tend to be focusing on the good wise, if you look at his economic policies and what he will try to put into place, it is progrowth. there are positives and negatives as he talks about the components, but clearly we are looking at an environment coming up that should probably lead to faster economic growth for profits. good for wages, good for jobs. one of the things he has been touting his infrastructure spending. he envisions it, or a lot of people speculate what he has in mind, is a private/public partnership. there are pitfalls with that. where do you think we need to watch out for as investors come to terms with what's ahead and
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how businesses position themselves? >> you talk about public/private partnerships in infrastructure, that is on our minds a lot in florida. we're hoping to make some big investments in infrastructure in years ahead, and i can see it could come from government spending, perhaps it's a public/private partnership, etc., but i think overall we will be in a reasonably good environment and we can have confidence to make investments. joe: how do you see the labor situation? one argument against the idea of a big infrastructure boom is that the labor market has gotten tighter. more and more businesses say they have difficulty hiring workers as it is. you imagine that if there were a big new projects, it would be a further strain on the labor market. from your perspective, have much spare capacity is there? >> there is some, but there's not a huge amount. i think that is only part of the picture.
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are in the beginning stages of labor inflation and wage inflation, tightness in various areas. i think it will be gradual us some people come back into the labor force. but contrary to other people i think it will move very slowly, because overall, she could have a long period of time where the average worker is doing a little after wages go down they could see some benefit. i'm hoping we are in a better trend. scarlet: you and bill gates are investing a lot in tampa bay. that's your new project. part of it is to develop the city into an economic successor. one thing you pointed out as a weakness for tampa bay is wages, and perhaps the labor market their. talk to us about what you are doing to get tampa bay up to speed. >> i've been in the tampa bay area for six, seven years. it's actually a great
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opportunity. the economy is doing extremely well. job growth is right now over 3.5%, population increasing 2%. we have phenomenal economic growth between 5% and 7%. it's a very strong area. one of the reasons i bought it, we are doing the $3 billion mixed-use development, because the whole tampa bay/ orlando corridor is one of the best areas for growth over the next 10-20 years. joe: why is that? i remember during the crisis, people saying florida is toast, the people will keep moving to florida forever. >> people are moving, businesses are moving, and after decades of depending on housing, the florida economy is diversifying. theys just discussed -- are putting a great emphasis on higher wages jobs and creating toinnovation ecosystem, bring young companies to tampa. joe: what areas outside of real
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estate are using the most growth? >> business services, and tampa bay area has led job growth over with businessears services and professional services. if we look at areas of innovation, what comes to mind in our region's financial services, life-sciences, tourism, and sports. scarlet: what about the demographics? innovation, what comes to mind in our region's financial you have proximity to latin america, but you also have an older population and community. it's kind of a microcosm of a lot of what the u.s. is looking at. how do you reconcile that with some of the protectionist talk we are getting from president-elect trump? >> latin america is close. it's a major area of focus. again, the tampa bay area economy is very diversified. trade with latin america is a small part of it. there are areas that benefit, and some that will get hurt. but if you are going to say one thing, contrary to most people's florida, thea,
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age is less than the national average. tampa florida, is, i believe, ae national average. going to become a decent hub of the southeast united states. scarlet: all those hockey players. you are sticking with us. we will talk about the financial turnaround of his tampa bay, and what it means to the nhl. this is bloomberg. ♪
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scarlet: i'm scarlet fu. hockey club is on
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the brink of insolvency when jeff vinick thought it. he is here with us in new york. when you bought it in 2010 they were financially troubled. he said the team was almost out of the red, on the verge. give us an update -- where does it stand? >> we are roughly breakeven. scarlet: can you give us a more specific sense of when you will get to a meaningful profit? >> when i bought the team, six or seven years ago, our goal was to be world-class, but i have three main objectives. one was to be one of the best teams in hockey. two was to have a big impact on the community and inspire others. we think we're doing a good job of that. three was to get to breakeven financially, and we are achieving that. scarlet: so you are a hockey success story. some hockey teams have not done well. what are you doing differently? >> i think the national hockey
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league is in a great spot right now. many of the teams are thriving throughout. we went there and the first thing i did after we tried to be world-class, i was able to hire a ceo of lightning, a general manager. third, with those guys there, i didn't metal. i got two people, some of the best in the business, let them do their craft, hold them accountable, given resources, but i didn't meddle. scarlet: talent, basically. ok. speaking of talent, one thing everyone is up in arms over his whether the nhl will allow players in the olympics. where do you stand on that? it feels like that is taking center stage and proving to be a distraction. >> it's obviously a great event. hockey has been the hallmark --
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if you look at the winter olympics over the last several cycles, hockey has been the number one event. our players like going there, the owners have mixed feelings, but for us to go to the olympics we have to be taking care of ourselves, and that is something we leave up to the commissioner. scarlet: can you be more specific? there are insurance payments that will need to guarantee player contracts, things like that. we have to make sure we feel confident if we were to go to the olympics, if we think it's the right decision, that we aren't losing money while it is going on. we're donating our assets, taking a risk of injury, and we should be compensated. scarlet: somewhat argue that was the case with the world cup of hockey, that you are taking a risk of injury. that went off without a hitch and it was a fantastic tournament. i wonder to what extent that removes the need to go to the olympics. do you see a connection? >> they are both great offense. the world cup was very exciting. the u.s. under 20, very
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exciting. it was great to get fans involved. it's a showcase for the sport. both are great demonstrations about talent and the quality of our athletes. scarlet: i was in vegas, and my husband put some money down on the rangers to go all the way in june. but we also looked at how your lightning is at 5-1. >> [laughter] well i hope we win. hockey, oneng about of the reasons it is the greatest sport is that it is so competitive, so even across all the teams. in other sports, some teams are really dominant and have a high probability of winning. 10nhl, i could give you teams who have a legitimate shot at the stanley cup. scarlet: the vegas bookies think so. do you have any concerns about
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the expansion of the nhl to las vegas with gambling? people wonder if that will infiltrate the game, or at least metal. >> no, i don't worry about that. i think las vegas of be a great market for the nhl. i think our team will be very successful. strong ownership, strong demographics. we will have great fan support. we can keep the game going separate. scarlet: jeff vinick. thank you so much. >> you are welcome. scarlet: joe? joe: thank you. we want to reiterate some breaking news. japanese broadcasters are now saying that a synonymy is annent on fukushima after earthquake with a pulmonary magnitude of 7.3, with us in on the warning up to three meters or 10 feet. no abnormalities reports at a power plant. we'll bring you more updates and we have a live report next. this is bloomberg.
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joe: japan's weather agency issued a warning for a possible three meter synonymy on the coast of shema, home to the nuclear -- coast of fukushima. advisories force army levels are issued for other portions of japan's northeast coast. rosalind chin joins us now on the phone from hong kong. rosalind, what are the key details we know as of this moment? rosalind: right now it's a magnitude 7.3 quake that hit, anderson on the warning was detected in fukushima. it was where that huge quake hit in 2011.
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reports that various power companies are checking facilities. tokyo electric is checking facilities to make sure things are ok. of course, we don't know exactly if a tsunami will hit, although this morning and has been issued, and a 7.3 does follow a few smaller quakes that happened this morning in the last hour or two. so far we have had reports from nuclear plants that so far there have been no abnormalities. y have been checking their facilities after concerns in 2011 due to the nuclear power plants that were being used in japan. scarlet: some other headlines a fireccording to nhk, has been reported after the quake, a tsunami also detect
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ed. we saw an immediate reaction in the yen, that is strengthened, erasing losses following the headline. based on what had happened in the past, what do you think trading will look like as investors and traders come in tuesday morning? > rosalind: this hit 100 56 miles fro56 miles from tokyo. we don't know if it will affect the capital and if it will be big enough to affect trading. at this point, it's difficult to say. of course, it will be a nervy day for many people. nearly 6:00,, it's nearly 7:00 and tokyo. the markets will open in a couple hours. scarlet: another headline that just crossed, a 5.4 magnitude earthquake near the east coast. the danger here is follow-up
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earthquakes, the tremors. joe: dollar-yen, if you want to go into the bloomberg diving. that represents the yen strengthening. the currency has bounced back a bit but is still stronger. scarlet: rosalind chin, thank you for keeping us up-to-date on this. we will give you any other headlines that cross. coming up next, president-elect donald trump's vetting for the top treasury job. this is bloomberg. ♪
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joe: president-elect donald trump resume to meetings today in new york with potential hires for his administration. he met over the weekend with feist present elect mike pence, and at least three candidates
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for treasury secretary, all of whom have connections to wall street. joining me now from washington, d.c. is white house editor alex wayne. alex, thank you for joining us. three names, all associated with wall street. are there any hints of the populist side of trump coming out in how he is thinking about treasury? >> no, we haven't heard about anybody from main street going to new york city to meet with donald trump. he's looking at financiers from wall street for this job. joe: is that a problem? why is that not a hit to his image? he hammered hillary clinton over her ties to wall street. a lot of his criticism was of the elites on wall street. how can he -- why is that not a problem for him, politically, if he hires someone who is a mainstream wall street financier? >> quite frankly, i thinking
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he's getting a lot of leash from his supporters. he's not looking at anybody for any of his cabinet posts, really, that strike me as much outside the mainstream. guys like mitt romney for secretary of state don't seem to be the type of character that many donald trump voters expected to see. joe: i think last week, you said that if trump offered romney the secretary of state -- that he would eat your hat. do you stand by that? >> same for some of the people he is looking ever treasury. one guy he is looking at is jonathan great, who has real estate at blackstone group. he's a democrat. he's a big democratic party donor, he maxed out hillary clinton the cycle. i'll give you another dollar if he appoints into treasury. but i am also wrong a lot. it could wind up that both of
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these guys end up in the administration. joe: ultimately, he hasn't picked one yet. but if one of these guys does get hired or does it offer this position, it would seem like that would go a long way toward telling wall street they don't have that much to be nervous about. they are probably really removing one source of uncertainty and anxiety. >> i feel like the markets are already telling us that wall street isn't too worried about this in ministration. it's not like donald trump ran on strengthening dodd-frank or anything like that he ran on the opposite. he's here to make rich guys richer. it's almost his campaign theme. joe: alex wayne, thank you very much. scarlet: before we go, we want to mention again that a magnitude 7.3 earthquake struck japan off the coast of fukushima, home to the nuclear power plant badly damaged in 2011. you are looking at a state-run
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broadcaster, that said a synonymy is expected imminently. they also say the synonymy measured 60 centimeters. we'll keep you posted on this
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mark: i'm mark halperin. john: and i'm john heilemann. and "with all due respect" to donald trump, maybe having a bit of a honeymoon, but not everyone wants to shake your hand. ♪ mark: there has been a magnitude 6.9 earthquake off the coast of fukushima, japan, causing us in on the warning. we will monitor that throughout the shorw and report any update. there continues to be a lot of interest in conflicts of interest when it comes to donald trump's sprawling business empire. sfa


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