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tv   Whatd You Miss  Bloomberg  February 8, 2017 3:30pm-5:01pm EST

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today, and ohio con was been set he has some concerns. >> brand-new revenue stream. i'm all for lowering the corporate rate in making the task of simpler and better. do we need a whole new revenue stream? are -- you are adding a new revenue stream to the government. >> no problem with boosting u.s. infrastructure spending but this needs to be offset. jeff sessions nomination for attorney general, hearing more on the floor from senator elizabeth warren. senate republicans barred elizabeth warren from the rest of the debate. republican -- vulcan said she broached senate rules by
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impugning the character of a senator. he says he spoke with president trump today. one says -- turkey -- demand that sound the relationship between the two countries during the obama administration. both sides agreed to act together. it will be the first official overseas trip. global news 24 hours a day powered by 126 journalists and analysts in more than 120 countries. is bloomberg. ♪ scarlet: live from bloomberg world headquarters in new york, i am scarlet fu. joe: 30 minutes here in the u.s..
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extendingreasuries their gains. joe: the question is what did you miss? >> it passes through the bill. in the u.s., an appeals court says it will not issue a ruling on the president's band today. stock activity has been muted but could a march turning point be in the cards? our guest peter will join us momentarily and he is navigating the political landscape. twitter will report fourth-quarter profits tomorrow. under pressure to jumpstart revenue growth and also make a profit. improvedrowth has not since he took over. joe: let's look at where the major averages stand as we head toward the close. abigail doolittle is standing by. abigail: a wishy-washy day for
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stocks. 500 and the the s&p nasdaq trading higher. all day.s down after the nasdaq and the s&p 500 have been flip-flopping between small gains and losses. it is worth noting the nasdaq is on pace for yet another record close in this large leaks planes why. here, which amazon and facebook are trading sharply higher. amazon and facebook helping out. we have the nasdaq moving for a record high. that fact that we have assets trading higher. five basislds down points third rallying. the yield is down for days in a row. first time that happened since last june.
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we had the dollar dropping against the yen, telling us the yen is rallying. he says year yield, action for financial activities for the bank's decelerating and not accelerating. it is something else to keep in mind in terms of banks trading lower. -- scarlet: this was a vote by 494 to 192ved in the house of commons. let's bring in the u.k. government reporter on the phone at parliament in london. on the self-imposed deadline, is
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the government still on track for that after the vote? >> it is looking secure. there were a couple of amendments with quite a bit of support even within her own party. clear thed to hurdles. as the last amendment was intoted, the s&p broke which's national anthem, shows as far as brexit is concerned, it is a done deal. joe: we have seen the british pound hardly moved at all which speaks to the degree this was seen as a done deal. and what is a key
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trigger here? date on which triggered, i think and maywill be symbolic cause markets to move a little. that is when the details will come out and the nitty-gritty will be exposed. we will get some idea on how europe is too british command. scarlet: at what point does theresa may have a hand in moving toward brexit as she sees it? >> there was some concession to to votethat they want forward to late. it government has indicated
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does not need to be the good -- negotiating table, it means there may be a little bit of room for maneuver. joe: thank you very much. isrlet: no matter who calling the shots in the white house or the fed, our next guest says we see a large spread on rhetoric versus reality and he bets -- reality will win. peter was a partner and joins us now to tell fact from fiction. reflectet classes reality and others reflect rhetoric or hope. what are bonds and dollar-yen telling us? >> you want to judiciously take risks.
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let's look at the 10 year. bad auction today. so off frequently and rally again. growth will not be as strong as one would like to talk about. there is the rhetoric of stronger growth and earnings per share growing dramatically because of potential tax cuts. dollar-yen has had a gigantic growth for currency since the end of the year. yen tends to rally somewhat because it is such a large importer of energy. top and other things being equal, you would want to be short oil in a significant way here because the rate count has gone up, demand seems week, and everybody is incentivized to reduce $50. there is political uncertainty
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if they move the capital to jerusalem. in termso be judicious of our risk-taking. it all leads into the fact the stock market is likely to correct because it is not dealing with reality. >> i want to bring up a chart we put together. it went on an incredible roller ride.r when you say negative on oil, do you mean not bullish or do you mean further on the downside? >> if you look at the longer time in the upper bound was in the middle 40's, that is likely pressure,, it puts you have to think of the out-yield market and spin
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effects associated with that. go back to the 30's, probably not. but more likely in the mid to lower 40's. againhe stock market once is virtually doing nothing. a total snooze. be where march could we see it. 2009, the white line is the s&p and when it peaked in march, what are we looking at? why march? >> tomorrow, a big snowstorm. people are planning for that. to the equity market and you see the second longest without a correction, and economic cycle, one should prepare for the potential correction.
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it does not mean there will be a law under -- one bear market. you look at the fundamentals and there is often an over thrust. a strong trend into the end of the year. we saw that in weakness in the prices, there is consistency here and one should think about if winter is coming, pull out the snow boots out of the closet. you hope it does not snow but it is prudent to plan on it. >> i want your thought gold. low on gold headed to the election, but then he focused on it election night. what are your thoughts on the safefields can -- ultimate haven?
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>> gold has been in a relatively long trend and is the mirror of the equity market. i think you will get more bang for your buck for the potential market, ig the equity would rather short the equity market but if you cannot do that, it will go without a hitch. scarlet: thank you. we both stick around and talk about hedge funds. ♪
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scarlet: a miserable new world for hedge fund managers, average annual turn well below most
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index funds. that is causing investors to jump ship. peter knows the landscape well and is currently the chief strategist of a fund that lance for proprietary trading. much as we talk about how hedge funds have had a miserable go at it, do you see it accelerating this year? check three. >> investors in hedge funds have to give money to those who have the potential to do well. we think smaller and more nimble is better. the worst thing any manager can have in a bull market is risk management because time bills
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you out. every successful hedge fund has of thenagement because nature of the business. you survive, you win. do?-- what do i anything, we do can all look at hedge fund stocks that have destroyed managers. keep youro discipline. at the end of the bull market, if we think there will be a correction, you want to be more active. you can explain yesterday perfectly. i tell everybody at the end of the day what they should have done at the beginning of the day. an uncertain future is where rich -- risk management should come in. if you look at a short time window, then yes, it has not done well.
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they say 5, 10, and 15 years. i am optimistic. joe: in a long time of rising stocks, hedge funds plant -- practice good risk management and it might underperform. atn you are looking answering the question of it is good or not, what are the key characteristics a wealthy individual should try to assess? fore are always looking emerging managers with whom to invest. the key is how do they deal with adversity? with money, that is great. everyone goes through a drawdown or a time of how do they recover from that? do they maintain discipline? if you come back from adversity, you have a great opportunity for
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success. bowl, young guys have the moves and old guys win championships. i want to see people who have gone through cycles and suffered and gone through different ups and downs. scarlet: how do they deal with adversity? >> it is a different and more tricky question. explain yesterday hurriedly. one could have a real-time track record and you need to compare that with the research simulated track record and meet -- make sure the diversions within those two is not large. with -- the further you go in reality, most and a lot, they do not do as well as they would have yesterday. joe: are you worried about the factorsing into various
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, momentum and value factors and what happens when everyone piles into the same trait? >> yes. capitalism is beautiful. the first idea is good. it is probably not the best idea. winners in the business, there are super great firms who will continue to do well. i think the latecomers will struggle. scarlet: peter will stay with us. joe: up next, bank risks in europe. this is bloomberg. ♪
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scarlet: we're back with a founding partner of -- investment group. you could find a chart using the function at the bottom of the screen. this is a chart on how stress levels in money markets are
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rising. a potential warning sign for banks. disappointing earnings in europe today. there is also political it really began blowing out in the euro area yesterday. the spread measures bank borrowing costs and where that will be. pick up on change monday. since goingseen it all the way back to september of last year. stresses are appearing in the market show. joe: we are talking a lot more about europe today than i think we expected to even a month ago at the beginning of the year. most people thought it would only be about trump or china. how much are you concerned by neverct the euro's story
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seems to go away. trading is the rate of speed at which things change. soros used to say be mindful of inflection points. when you see something that starts to accelerate and seemingly comes out of nowhere, one should be mindful about that. the chart explains reality versus rhetoric, which is what we started off with probably better than any other chart. there is uncertainty you look at from biggerreements european countries to the issues in greece.e imf people are sleepwalking to the difficulties happening in italy now. and of course, metaphorically, we are building walls, which makes it more difficult for people to understand whether there will be transfer of beital and where that should
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put most efficiently. >> you were the right hand man had mapped theou 1987 market against the market preceding the 1929 crash. if you look at what we are facing in europe and the u.s., is there a parallel? what would you method against? more credit than i thank you. we were far ahead of our time in terms of research into what we were doing. usually, when there is a crash, everyone is worried about there being another crash. that is not likely. if the market corrected tomorrow by 40% in three days, people would be like, what a bargain. i will buy it. itause of the uncertainty, is likely to be much slower and far more painful in the sense it dripbe trip -- drip, drip,
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because of that. there are economic and market reasons for that. one could argue if you totally unwind dodd-frank and neat use all of that leverage and put it back in the system, that would lead to a greater potential, but people learn from prior mistakes and one would think that would not happen. joe: that has been blowing out. another pool of people over learning from past mistakes and they see brexit and trump and perhaps trying too hard to find next parallel? >> yes and no. it is easy to say that. if you look at the cycle and
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people are looking to blame others, i am really good at that. if someone messes up, i have to to in an economically challenged environment in france or to say,e, i do not want my education is good, i do not have to work hard enough. my outlet is -- the election. there a black swan you are watching out for and what might that the? you cannotition, really see the black swan but risk to me is there is an inflection point when people realize the likely economic growth and earnings per share are far less. scarlet: thank you. the market closes next. take a look at major indexes with less than four minutes to go before the close.
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you have the dow coming down by 38 points. the financial drag there and the s&p 500 little changed. this is bloomberg. ♪
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♪ we are moments away from the closing bell.
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gold as another brand loses steam. scarlet: i am scarlet fu. joe: i am joe weisenthal. we will have closing bell coverage every day. scarlet: we begin with our market minutes. there is the market application, we do not have a lot of news in the dow or the nasdaq create the s&p has had a little change. financials for different sectors. joe: another really quiet day. you can see there, the couple is up by a small of points. the bank of america losing 1% as well. that had company
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several takeover offers, you can see that it is up 12%. they are discussing their options according to resorts -- reports. we also want to mention nordstrom, this is a company -- name named jack dropped by president trump. president trump took to twitter to take displeasure at them dropping ivanka trumps clothing. they take a little bit of a hit. caroline: the antitrust people are going to run to nordstrom today. scarlet: nordstrom did come out with a comment saying, that trump decision was made by performance, her sales declined heavily in the last half of 2016. she was personally informed of this back in january. joe: let's talk about government bonds.
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the yield coming down in the u.s.. 2.34, being a little lower than it was earlier in the day. it was 2.6 not long after the election. significant, the reserve ask of india not counting people expected. there is interesting stuff there. we have to keep an eye on europe. after coming in a little bit today, everybody is so focused on this election. this whole thing with the french spread., it widens the scarlet: everybody is looking for the next trump moment. currencies, we have the dollar falling versus the yen. pastis the yen over the couple of days. to severaling
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reports. japanese yields circuit look more attractive, we are also looking at march 1. that could be the consideration for the yen. we will have to mention bitcoin, look at that. on fear of a chinese crackdown. there were several exchanges, money laundering was their objective. it as ainvestors use hedge against the depreciating yen. that is quite a recovery. joe: let's look on the commodity front. coming ona big strike one of the biggest copper mines in the world. keep an eye on copper. is staying about the same.
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we talked about the similar path of gold in the treasury. oil is ticking up. asber is starting to surge people were talking about trade affects. lumber is one of the biggest gainers. scarlet: those are today's market minutes. joe: tax breaks promise by president trump rally stock since election day. the alluring prospect is a ofder adjustment to the end wiping out benefits. how should you transition your the head of strategy. joins us now. what is the price and policy right now, what do you see happening? view is the, our
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fundamental value you we have seen since the fourth quarter is underlining data. that is up 3% in the third quarter. earnings a rebound in during the third quarter. there are pretty good reports, it overall pretty good reports, it overall supports the rally. as you mentioned from a policy position, there are corporations with higher tax breaks that have outperformed. we think it is about 30% of price. we think the big thing with investors is the border tax. there is a corporate tax cuts. our analysis shows us this could be a potential $1 trillion from imports to exports. the probability is very low impact. it is a eps perspective 20% corporate tax rate, they
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would get a 12% boost. the border tax would cut that in half. go back towant to the border tax issue, they are calling this a low probability area how are the odds of this shifting as you have seen in this particular administration at work? have seen aou focused coming out of the gop retreat. first, they focused on obamacare and a fiscal stimulus with a tax package. it seemingly is getting pushed out. , think it is investor focused it is shifting back towards the fundamentals. whatever happened to fiscal stimulus, is that something we talk about or is it forgot them? >> i think it is on investors of mind. i think from a timing
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perspective, there is an expectation we would take -- we would see more of that out of the gate. trump seemssident intent on pushing companies that rely on imports. thatur note you noted imports are much larger than exports, is that a bad thing when you are a mature first world economy? the u.s., their imports are much larger than exports are it they have much larger margins. when you have such high content of imports with the stuff that you sell. earnings take a much bigger hit. hit to themedian 24% eps assuming no change in dollar. another policy you see thrown out there is changes in the tax deductibility of interest perhaps. making it more compelling to
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borrow money, is that something you see in the cards and how would that affect the allocations. >> from a big picture see fullve, we accountability of interest. plan, therese gop is corporate tax cuts, it would shift the perspective in the for as they get trumped up full electability. on the flipside, the incentive for buybacks and nonrelated debt could reduce significantly. scarlet: one last question on the corporate tax rate, what companies the able to retain that tax bend th be under fire to give that to
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their customers? >> if corporate's were to see a lower tax rate, there is a number of things you could do in investing in your business. they could try to increase share, buffering your margins if they are under pressure. then turning that capital to the shareholder. it is up to them to what they do they are trying to make a positive sentiment. there are also small business options, some hope that money would be spent back here in the u.s. , he justh parker mentioned those numbers. we will be talking more about that cap between our data and the soft data like surveys. with our next guest. this is bloomberg.
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♪ >> i am mark crumpton. it is time for the first word news. begun the formal process of leaving the european union. the vote passed in the house of commons. it will now go to the house of lords with a final vote on march 7. once the the legislation is passed, prime minister may can trigger article 50. says the united states should focus on reducing deficits. speaking to bloomberg today, he
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said the tax code is broken. the american people understand that our tax code is broken and we have to start over. to participate in the main text, you will have to pay the highest rates in the world. cut -- ratea tax that is both broken and stupid is what we have to do. >> he said the freedom caucus has some concerns with the adjustment. the u.s. military is looking to rent space at trump tower. space when he is working here in new york city. trump's wife and young son lived and the penthouse at the manhattan tower. there is a report that yemen conduct special forces missions against terrorists.
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they are angry at civilian casualties caused in the first commando raid. a member of the navy seals was killed. global news 24 hours a day powered by more than 2600 journalists and analysts, in more than 120 countries. i am mark crumpton, this is bloomberg. scarlet? scarlet: breaking news, whole foods result -- reporting results. consensus,tching the you know what? we have different numbers here. let me dig into this a little bit more. when we look at the adjusted eps it looks like it was $.39. that is a comparable sale. they are down 2.4%. that is a disappointment, you can see it moving forward at 1%. one thing that analysts pointed out was that the produce has
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been in deflation, it has been falling and that puts pressure on companies like whole foods. joe: we will be watching that. what you miss? been a surge in economic confidence, will that translate into actual acceleration? gap inas been a lot of data between the soft data and the hard data. neil, great ton have you back. , great to have you back. this analysis on the bloomberg, differs than the soft data. hard data -- what a hard data keep up? all kind of agree with it to be honest with you.
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that is the most comprehensive hard piece of economic information there is. a lot of it speaks to the flaws in the metric that you are producing. that is up 12 and a half percent. that is a hard piece of information. in a row toe months affect a high, that is a hard piece of information. we talk about leading indicators, that is up, for example, capital spending generally. joe: do you have a chart under terminal, what you looking at? >> i am looking at core capital goods, idol see why those will get canceled. the shipments are already starting to follow this. they will be reasonably healthy over the next couple of quarters. business, itfor has been very sluggish over the past six quarters.
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when you look at export orders and actual goods, it is basically where you would expect. i think it is a red herring, a last ditch effort to keep some relevance. private domestic demand in the u.s. has been growing to and a half 3% for the last several quarters. we know that does a better job of telling you are the gdp is. i will take the over. scarlet: the hard data is showing gains, the soft data is missing the consensus. the survey data seems to be doing better. look at the economic surprise monitor, i want to point you out at this right hand corner. this is the soft data that joe is referring to. and realok at housing
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estate, compared to estimates, they are not competing. --ple are being much more on modest with their estimates. perhaps i have that in reverse. think if you drill down into each of those things, some of the data is from months ago. other is more recent, back in december we had stronger auto sales. but that is my captured in that data. whether you like the new york fed, it is generally above to -- 2.5%. percent consensus forrg 2017 it is just 2.3%. something has to give. ,ou talk about hard and soft
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that sounds like an ad for pfizer. look at the data that is capitulating, we have not seen that. people are still very grumpy. joe: what are you looking at, are we going to see a higher gdp? good week kick into a higher gear than what we had seen since basically the recovery. >> i think the consensus is being pretty lazy right now. everybody is telling you is going to be the same it has been over the past six years. i think 12% is optimistic. joe: do you think higher? >> i think we started in the consensus, i think it will be closer to eight. at residential spending, you can make an argument. there is a limit to how far the
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savings rate can fall. i think 2017 though be a year where the growth earnings will price. are you concerned about the wage gains we saw? >> these numbers they go up and they go down. if you remember back in november, people were making this argument that the wage gap slip, and we ended the year at 3%. scarlet: it is noise right now? falling, whent is you look at different measures of the same concept. it is all principal components, this tells you this is in the high twos. joe: i know it are referring to. neil, stick with us, we will
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talk more about that later data. scarlet: of course, a another quick check on hold foods. -- whole foods. company now sees sales at one and a half percent or greater. 2.5%, to ahad seen gain of 3.4%. whole foods shares down. this is bloomberg. ♪
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joe: him and is neil, let's talk about the latest investors not using employment rates.
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what is this about? >> i am just to a bloomberg article that came out with a competitor. joe: you are just mowing down all of this. the unemployment rate is low. the stock market is at risk. if you are looking at the big market declines, that was usually preceded by low employment. i think this is kind of isolating that the unemployment rate and the stock market are correlated. before a remission you would expect to see a fall. every session you would expect to see this. is nothing special about 4.5 that creates a trigger for
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low equity prices. biggestooking at the 30 correction since 1950. you are seeing a 10% correction with the economy, not employment. scarlet: especially since the definition of full employment is not static either. >> it is not static, but there are also other variables, any other analysis that you would be trying to gauge. it is much deeper than you would expect it to be. the real and just rates are a lot lower. , i think the bias is higher. it does not mean that the u.s. scarlet: there is one sector you did mention, paper and forest companies.
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and foresthe paper index. they had a nice run. what we this is sort of have seen. it is important to tie technical analysis, that checks up on three boxes. we have a stronger housing market in the u.s.. helping, it ise a potential trade skirmish between the u.s. and canada. this has been going on for quite a while. that would imply a bias towards domestic producers. obviously, the technical side is fairly favorable. donald trump wanted to roll back some regulation and he come --ned that the friends and friends of business connect it loans, there is some fighting
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going on. >> there has been tightening, nothing is related to any of this. i think that is a function of what has happened. we have seen corporate bonds split frequently. we have seen a financial the stockr work great markets going up sees healthier balance sheets in companies. back, ita step actually legs a bit. i don't put too much on that. it is one thing to look at. neil, coming up we look at twitter. ceo jack dorsey, hoping to turn a profit. this is bloomberg. ♪
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♪ >> i am mark crumpton. it is time for first word news. the founder of the house freedom some states should allow the affordable care act if they like it. says thecongressman bill is something he does like us what you want from rand paul in kentucky. >> they are sponsoring something similar. we like it very well. we are talking about it. >> this would strip obamacare's individual mandate and essential health benefits.
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calling forump is the halt on immigration disgraceful. they say it is clearly a work on the inside. spoke about how eagerly the order was raised. >> you can extend, you can put restrictions, it you can do anything you want, it cannot be any planar, for us to be going to this. judge ruledespected very strong in our favor. the ninth u.s. circuit court of is weighing whether to continue the suspension. it will not issue this today. a north carolina court broke a law that stripped the governor of powers.
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the law passed by the legislator required the senate confirmation from the governor's cabinet picks which previous governors have not needed. it was approved in december. two weeks before he took office. it was criticized by democrats who called it a partisan effort to undermine the new governor authority. has madeiana governor a plea after tornadoes ripped through the state. there were left vehicles and thousands without power. the damage was in the same ninth ward that was so heavily flooded by hurricane katrina. global news 24 hours a day powered by more than 2600 journalists and analysts, in more than 120 countries. i am mark crumpton, this is bloomberg. now let's get a recap by the market action. first looking at the major indices.
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the dow jones is a little bit lower thanks to the financial, it nasdaq and s&p up a little bit. some are nancy want to mention. whole foods trading lower, over 3%. it is a pretty weak, e eps for the year. have, sales down. are pretty stagnant, a mediocre quarter for all those. sticking with earnings, scarlet you are looking out at twitter scarlet:. that's right, president trump has made twitter a much broader target. to turn ay is aiming profit in 2017. let's look where the numbers don't lie. jack dorsey says his goal is to
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get them to stop moving money. according to bloomberg estimates, they do not assume twitter to be profitable by 2019. dorsey is cutting jobs to try to reach that goal. monthly users both froze in the third quarter. despite recent gains, we are seeing growth stagnate. this acceleration and user growth is hurting sales. the overall's -- the overall growth is hurt by this. bloomberg intelligence says they are going to be critical forecasts for the first quarter. the global network and sharing decline, they did see revenue in the third quarter. they saw their first ever drop in the u.s.. all of these have weighed on
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twitter stock. said thateenfield donald trump is creating a second chance for twitter. made efforts to make the service a concrete effort. it was one of the reasons twitter failed to acquire a bid from initial investors. we will be following their results before the u.s. opening bell. joe? miss, chinaou property development has stock bottom second valuations. from oxford to the china center, they said where the money would be. up untile have seen the end of last year has been pretty feisty pickup in property prices. regulatoryrn, the authorities have reacted to what
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we have not wanted to see this too quickly. joe: joining us for more, the chief economic asian correspond are. this is one of the stories that comes around every couple of months. that it picks up again. where do you see this? >> i think it is just one of the aspects of china. they managed to have a pretty frothy market last year. , one of thesting things happening in china was people wanted to get money out. as the government makes it harder, more money is going back into the government. i think they have to a balancing act.
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is the thing with their economy, when you look at what is happening. you have a decent handle of what is going on. scarlet: why would the government not want the people to spend their money? they do not wanted to go abroad. >> they try to focus on market rally. if you remember the opening hurting. there is an alternative source of capital, it did not do especially well. goes into policymakers, china is trying to boost the domestic consultant spending. joe: it is worth noting if we going to the bloomberg, looking at chinese properties, the price to book ratio is very low. return of oil prices,
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not a lot of enthusiasm. scarlet: do you think that is a better deal for investors. do you think those investors will go through this, you will get a sense they are more financially responsible. i think there was a lot of leverage there. one thing you can say about the , one ofhousing market the boom she saw is that mortgages are still a small proportion, people are much more forthright with cash. >> there is a lot of debt out there, but it is not handled the same way. >> corporate that is a big thing. scarlet: let's look a -- get a ,ook at the bigger backdrop
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this is 4242. the white bars show the outflows. have the currency meter over here as well. this, when thet chinese government looks of this, how do they wanted to appear? >> there is an absolute correlation in the chart. it is almost paid for last year. not all of it is capital. is they areseeing trying to put a flow under their currency. reserves gorash under. they are spending money. they want to stop the capital from leaving. they want to bring in these tighter controls, i think sure china would like a weaker currency. where the point
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capital is leaving the country. joe: this is just a game of what the mall, to the close one door? >> i think that is an element of this. i think ultimately they have been quite effective. ultimately, it is tough, there are ways and means out to do it. scarlet: thank you so much for joining us. india, the signal to a cycle by holding rates. why they will give more central banks more flexibility. this is bloomberg. ♪
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joe: we have some breaking news, it is ongoing. aeing is the front runner for singapore air order. jets, the order could be announced this week. boeing is up a little bit. scarlet: would you miss? the central bank up in india. this has predicted a rate cut. if you could link what the central bank debt and the decision to see a cash grant that was put in place. the this mean the central bank is no longer concerned with consumption being under pressure? >> thank you for having me on.
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it is a pleasure to be back. i would actually argued that the that it was shows somewhat concerned when you look at the growth forecast for both the central plank and you see the forecast for as much as a fall. it is his dearest 4017. today is underf concern of the wake of the demonetization. nearly to what the government was like? >> this is not the first time the r.b.i. has held rates. the government has been pulling and pushing. signal this is a clear that their interest rates and
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policy proponents are considering independence. this is something we have been looking at. if you look at some of the economic fundamentals, here i am looking at this in india. 2015, wet the end of are not getting the most talk-date data yet read about the effect of demonetization and an economy. you do not see it showing up in the data. right, the impact has been worse on the sector. it does not really show up in the official data. tories, youe the different data
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depending on the sources you look at. different data depending on the sources you look at. you get many different figures when you look at different statistics. they only look at five or 15% of employment. itself hasent admitted that unemployment has a lot. if we are really seeing the unemployment rise, in various parts of the country. could that spread? >> absolutely. there is certainly a knock on effect, they form a part of a supply chain. at some point in that chain, indeed, you are seeing both from the government and the private sector. there are knock on effects that could last for another six months or so. dampening growth and economic activity and revenue
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depending on your sector. there will certainly be some lingering affects going into 2017. you can point to economic slowdown in this policy. joe: is there any reason to think that this will be worth it in the end? that there will be a less corrupt government. >> from the government's perspective you see a huge political benefit from the nation. it would be the only government in indian history that would see the economy be present. they proponents say you had decades to address this issue, we it tried. i think also and more importantly, it will bring more and more people and businesses into the formal financial system in terms of paying their taxes. of have enormous amounts
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cash in the banks during the demonetization process. they were going through and sorting that out. i expect and the government certainly expects the government make it harder to squirrel away their income. higher tax revenues will allow the government to shore up infrastructure. joe: an analyst for the eurasia group, thank you very much. witty onceo andrew drug prices. this is bloomberg. ♪
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scarlet: the uk's biggest drugmaker reported on quarterly sales, it warned that 2017 competition in generic coffee may be an issue. we spoke with glaxosmithkline ceo on drug prices. they spoke about donald trump's desire to bring down drug prices. >> we are trying to understand every day. is u.s. health care unbelievably complicated, there is an opportunity to streamline it, i think that would help. i think market-based solutions are the way to go. specifically from a dsk perspective. change there.t no it would have an immaterial to zero affect on the tax. on medicare, we have a bigger systems presence there. we get generics later this year or whether there is some reforming price, you cannot lose it twice if i can put it that way. the in fact is not think --
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impact is not significant. when you think about the guidance we have given this year. if indeed there is a generic, we have shown people what the impact is. i think that gives a pretty strong reassurance about the company, even when they tried to change prices. joe: let's talk about prices, they are trying to get that pricing through. on marchet to happen 28. what are the chances and the odds that you applied for that. we have absolutely no idea. we have no idea what a first pass approval would be, we don't know when the value might be available. we have no idea. first of all, if there is no
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growic, we will be able to between 5% and 7%. if there is a generic, it is very straightforward. generic,retty full on it will take on 70% of the market share. then we would be around flat. then we are going to try to get a bracket. then we will see as we go through the year. we are literally going to further been a tail on the donkey. for us to difficult be more precise. i think we have given ourselves a raise -- range. to aboutet a pointer whether we announce our results today. i think we will all see how the events played out. >> >> the stick >> is get your
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prices down, the carrot is how we will see some of these getting stronger. as a ceo of a drug company that approving of so these drugs, it will be ?uicker > i think first of all, we will all encourage a safer and faster regulation or it i think the first thing is be there to protect patients. i am supportive of a review of regulations or it as long as we do not sacrifice safety of precautions. in that environment, over the last seven years, we have had more fda approvals. over the next two or three years, we are going to have 20 and 30 nude drugs that go forward. this would be a potential beneficiary. critically, that has to be done
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while maintaining a strong focus on patient safety. scarlet: that was glaxosmithkline andrew witty on bloomberg. dell -- china for the bloomberg news flash. there is some welcome economic news out of the white house. a $7 million investment in a manufacturing plant in arizona. they will make the most advanced chips on the planet. they will employ several hundred workers. about's are convinced who the public investment fund is being talked about, six flags is also in negotiations to enter their first attraction in saudi arabia. that is your bloomberg business flash. scarlet: here, what you need to
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know about the markets. this is bloomberg. ♪
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scarlet: would you miss, the dow jones declined. the nasdaq went higher, but not by very much. joe: another very quiet day in
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stock. scarlet: in terms of what we are looking at tomorrow, we will be out at 8:30 a.m. joe: tomorrow i will also be looking at the bank of mexico. they will have to do something about that. twitter and coca-cola releasing their fourth-quarter results before the bell at 7:30 a.m. we will be breaking that down that does it for what you miss. joe: have a great evening. this is bloomberg. ♪
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>> you are watching "bloomberg technology." the senate is likely to confirm senator jeff sessions'nomination to be attorney general after senator elizabeth wareren
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was accused of breaking the senate rules by impugning the conduct of a fellow senator. cia director mike pompeo wellhead to turkey tomorrow according to turkish present erdogan who spoke with president trump today. says the president responded positively on two key turkish demands that soured the relationship between turkey and washington. says that aump court challenge to his executive order on immigration as "disgraceful." chief's in police washington, the president spoke about how clearly the order was written. an appeals court in san francisco is weighing whether to continue the suspension. forces fighting islamic state should be able to reclaim cities within iraq and syria in six months. iraqi forces have taken half of mosul. global news 24 hours a day


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