tv Bloomberg Markets Americas Bloomberg September 19, 2018 1:30pm-2:00pm EDT
the victims and their families as they recover from what has been described as an epic storm that left at least 37 dead in north carolina, south carolina, and virginia. >> to the families that have lost loved ones, america grieves with you, and our hearts break for you. god bless you. wewill never get your loss, will never leave your side, we are with you all the way. to all those impacted by this terrible storm, our entire american family is with you and ready to help, and you will recover. north carolina governor roy cooper asking the president to help cutting the red tape to get his state the federal will need to recover. china has not completely close the door to new trade talks with the u.s. despite president trump's decision to impose tariffs on more chinese goods. the country's finance ministry
says it is open to dialogue with washington. one official tells bloomberg it to holder -- be better talks informally come out of the public eye. there is a report to reason mate's repair to reject the european union's improved offer to solve the irish border issue. the times of london says negotiator michel barnier has not dropped his insistence that northern ireland be treated as a separate customs jurisdiction from the rest of the u.k.. the irish border is one of the key issues preventing an agreement on a brexit deal. venezuela plan to revitalize and oil industry that has fallen into ruin while turning away from cash rich customers like the u.s. aesident maduro plans to use $5 billion loan from china to newly double oil production that has fallen to a seven-decade low. venezuela has the world's biggest oil reserves. thes now pumping about half crude it did in 2005.
global news 24 hours a day, on-air, and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. >> live from bloomberg world headquarters in new york, i am shery ahn. in toronto, i'm amanda lang. we are joined by our bloomberg and b and m bloomberg audiences. >> another day without a deal. canada's finance minister says there is more work to be done on a new nafta with the u.s.. the amazon ceo weighs in on the company transformation from books to selling almost everything under the sun in a real -- rare excuse of
conversation. we hear from the outlet that chairman john hennessy on why google was a no-show at this month's u.s. congressional hearing. amanda: let's get a quick check on the major averages. not a lot of action in terms of moves one way or the other. also not a lot of negativity. the broadere for s&p, three points to the upside. we are seeing u.s. banks on the move higher today. that is as we also see the yield on that 10-year treasury above 3%, 3.07 at last -- check. the nasdaq is working slightly. we are seeing it pick up a little bit us beat, a third of her percent to the downside. microsoft, amazon are weaker on the session today. trade remains a focus but this is may less conviction in either direction. shery: still watching the nafta talks but also the trade
headlines when it comes to the u.s. and china. at is affecting what the currencies are doing. .e just heard the chinese say the chinese will not do value and weaponize its currency. though you want gaining ground against the dollar. it's been stronger this entire week. the chinese premier saying devaluation will do more harm than good to china's economy. remember, the yuan very important now because global markets are facing rising interest rates, strengthening dollar, serving as sort of an anchor for where emerging economies are going to go, especially when we will see more volatility in the currency markets. if you look at this chart on the bloomberg, you can see emerging-market fx volatility has risen to extreme levels. at one point, the ratio of em-gm -- we have not seen these levels since 2008. amanda: that is pretty
fascinating. we are watching another week go by, more work to do on nafta. talksals are resuming her in washington but a trade deal is unlikely this week according to people familiar with the discussions. the countries remain at odds on some core issues, increasing the odds president trump's threat to freeze out the northern neighbors, us. for more, we are joined by our trade and customs partner from jpmorgan and deborah, a professor at the university of ottawa. we started talking about the canadian response to u.s. demand , our defensive reaction. what about what we went into this with. after 25 years, a deal probably needs a refresh. what should canada bp pushing on the positive side of the leisure? >> i think it is looking at the new technologies and the new industry sectors that exist
today that did not exist when the deal was struck. how the deal was not all about business from a to them because it was antiquated. obviously, we needed a refresh. him even more than a refresh in certain corners, a retooling to match what was happening in the world outside of the nafta agreement. is it how big of a risk that nafta 2.0, based on the u.s. mexico deal could be worse than the status quo? risk,hink there is a real if canada does exceed some of the u.s. demands, which have been quite protectionist, and would roll back some of the gains in nafta 1.0. expansion ofor an procurement, opportunities for canadian businesses at the municipal and state level. the united states has responded access toto reduce
procurements with new by america restrictions at the federal level. also, canada asked for an entryion of the temporary visas for business professionals and other classes of persons. we have not heard anything about that. given the u.s. approach on immigration, i suspect the attitude has been negative on that as well, which is important for business. amanda: we have this sense that there is a imminent deadline, political reasons for that. keep saying a bad deal is worse than no deal. in other words, we could walk away. can we really operate in this day and age without some kind of deal with the u.s.? if we did not have a deal, the sun would still come up, the birds which are.
it would be exceedingly painful. from my point of view, it is not a viable option. the number of americans and canadians and mexicans who would lose their job. the ripple effect that that otherhave across all industry sectors, aside from the ones we tend to talk about. we talk about automotive, dairy, oil and gas. but there are lots of industry sectors obviously that feed off of the economic ripples of those. it would be pretty devastating. the sun would, but it would be devastating. if we get a renegotiated trilateral naphtha, how important for businesses to adjust to the new rules of the game? >> right now, everybody's tied chains are on burning platforms. even if an agreement is agreed to coming out of washington this week or next, the rules of the
game are going to be different than they were when we set down at the table to start. almost everybody who relies upon that that to any extent to strategize within their supply chains, they will need to do a complete refresh of the supply chain. it will likely mean that they will be breaking contracts with existing suppliers, looking at ways to minimize their research axis put in place. there are a lot of factors on the table today that were not on the table a year ago. to see it's interesting things like investment in cultural industries suddenly surfacing. we understand for the canadian deal team there are some sticking points, chapter 19 being one. are we seeing these things surface as a red herring? there are many countries in the world of protect their cultural industries. it would be surprising if canada was one that threw themselves open to foreign investment. nafta is one of the few
trade agreements where canada has protected culture. so it is unique in that respect. of the day,the end there probably will be provisions on culture, similar to nafta. i'm not that concerned about that. on the other hand, i think we will likely see a very different investment chapter from the nafta chapter, and further to the point that has been made already, i think businesses are going to have to adapt very much to the nafta 2.0. the rules of origin will be different for autos. we will seew what for other industries as well. i think we should be prepared, to seee is an agreement, very different provisions, and businesses will have to adapt significantly.
i am prepared to see some real , ifrises in the text indeed, they are successful. when it comes to intellectual property, what was agreed between the u.s. and mexico, how much can canada agree to? debra: i think probably most of it. a lot of it was already in the text of the agreement that canada now has before parliament. there are some sticking point that will be difficult for canada. i am sure there are other problems and team canada and the u.s. right now. for example, the 10 the eye of a term for biologically be very expensive for a health care system and problematic for generic producers. secondly, the 75 year term for copyrights, canada has always , in other agreements not only with the u.s. but also with the european union.
i think these will be too important sticking points. no deal this week is what bloomberg is hearing. do you think they get a deal in the near future? no, i'm not feeling optimistic and i wish i was. time tothink this is a be putting automotive workers against dairy farmers. but the politicians have to realize -- when i say politicians, i mean from all three countries -- that they are playing with people's livelihood. they have to do some unpopular things. joy, deborah, thank you both for being with us. coming up next, we share leadership lessons from the godfather of silicon valley, alphabet chair john hennessy. this is bloomberg. ♪
shery: this is bloomberg markets. i'm shery ahn. amanda: i'm amanda lang. as the chairman of aliment and former president of stanford university, john hennessy has been called the five -- godfather of silicon valley. his new book is called "leading i asked him how the leaders of tech firm today need to change their style given the way the companies run now. populationent of the we touch with technology now has broadened so much more we need to be aware of the consequences of that technology. so many people depend day today on technology provided by facebook, google, twitter, amazon. it changes their lives. the leaders need to be aware of that long reach they have, that
dramatic impact. amanda: obviously, there is a growing awareness from many events in recent days, weeks, months, how does the leadership need to respond to those events? think the leadership needs to not just focus on the technology but on the impact of that technology. certainly, we will see this increase because the rise of artificial intelligence will increase the impact even more of these technology companies. we have to be acutely aware of how the technology is being used both for good and for bad. and trying to see what we can do to ensure that our technology is used for good. amanda: when we saw recently senators questioning tech leaders from facebook and twitter, google chose not to be there. was that a missed opportunity for the leadership? john: i don't know that there was a missed opportunity, there was some inability to synchronize certain things, who was available, other commitments
they had. certainly, we need to do a better job communicating the core values of the company, our commitment to the company and users of google. amanda: a long view of this is so important. these platforms grew up as these agnostic tools. you are not trying to do anything with them. now they are being used in ways that you did not intend. where does the responsibility live for the companies and the folks running them? john: it is a challenge because you have to balance first amendment rights. the internet is magical. it allows anyone to publish. but with that comes a loss of authority that we have with traditional news sources, which vet their information and try to adhere to the facts, separating out opinion from news. we have to think about how the services we offer will align with that. news is different from search. search, you should be given to get to anything somebody
publishes on the internet. news, you should be able to get to authoritarian sources which are considered reliable. that is clearing is data and the control of data will be one of the most important assets of the century. are we prepared for that? talking about, folks inside a company like google, but also regulators and ordinary citizens, do we know where we're headed for? ofn: we have a lot challenges around data. one thing that has become crystal clear in the last two years is security. if a company has lots of personal data about me, what are they doing to secure the data and ensure that somebody cannot get to it? building on that are issues of privacy. is it crystal clear between the users and the company how that data can be used, how it can be resold, for example. this has always been something
of a mystery to the typical consumer, certainly with credit card companies it has been. it is increasing as the amount of data grows and grows. so we have to have a clear agreement between users and the company about how that data can be used. amanda: do you think it is clear inside tech companies, the direction? often innovations are running so fast, do they run ahead of these issues that can be thorny when they hit the public? john: that's a great question because in some sense there was a mindset inside the tech companies, run past, break things, and then fix them. that does not work when you are talking about breaking something like somebody's privacy or data security. ande need to rethink that think about the implications, which will probably mean slowing some things down a little bit to make sure that we really understand what the user impact is. meanwhile, these companies get ever bigger, a
trillion dollars would be hard notice, the eu taking on amazon, now appearing to square up on google. is it fair to look at tech companies and say you are getting too big? john: in the end the question is not how big the company is but whether or not he continues to serve its users and customers effectively. or whether, obviously, it could use its size to eliminate opportunities for customers and users. that is where the regulatory agencies have to balance many things, what is in the best interest of the consumer and user. how does that fit in with how big the company is and what they are doing. amanda: that was alphabet chair john hennessy. time for the business flash, the biggest stories in the news right now. the canadian marijuana company tillery soaring. the ceo todd of the company's
prospects in an interview after the bell. have jumped more than tenfold since the ipo in july. the big winner in all of this is the private equity fund backed by peter teal. array, now% of till worth more than $12 billion. the chairman of danish bank dan scott now says that a large portion of the 230 $4 billion that flowed through its tiny estonian unit should be treated as suspicious. is bank ceo thomas borgen stepping down in the aftermath of one of europe's biggest money laundering scandals. andchairman will anderson that he may leave as well. amazon.com run the risk of following in the footsteps of google when it comes to the european union. eu antitrust chief says regulators are asking how the online retailer is treating smaller rivals trading on his own website. the eu find google billions of euros in a similar case.
amanda: this is "bloomberg markets." i'm amanda lang. shery: i'm shery ahn. bezos knows a thing or two about building a business. in an exclusive interview, peer-to-peer conversations hosted david rubenstein and he's to the world's richest man about amazon's transformation over the years. >> what propelled her to sell things more than books? >> after folks we started selling music, and then videos. i emailed smart and 1000 randomly selected customers
and asked them, besides the things we sold today about what would you like to see us sell? that answer came back incredibly longtailed. the way they answer the question was with whatever they were looking for at that moment. wishf the answers was, i you sold which is why for blades because i need wenzhou wiper blades. i thought, we can sell anything this way. your stock at one point was at $100, and then went down to six. >> that whole time is interesting because the stock is not the company, the company is not a stock. i i watched the stock fall, was also watching our internal business metrics of customers, profit per unit, everything you can imagine, defects, etc. everything about the business was getting better. so as the stock price was going the wrong way, everything inside the company was going the right way. just part of a great
conversation between amazon ceo jeff bezos and david rubenstein. interesting, there was a moment where he said what else could i sell? you could almost play a game with yourself of find anything anywhere, and you can probably get it on amazon. obsessed with amazon, i'm a prime member, i get almost everything through them. the return policy is great. anyways, really interesting that he says the success is because he was obsessed with his customers, not his rivals. you can watch a conversation with david rubenstein tonight at 9:00 p.m. eastern. this is bloomberg. ♪
says if dr. ford shows up and makes a credible appearance, "that would be very interesting." her lawyers say they want an fbi investigation before she will appear before the senate judiciary committee. is a member of that panel, and he spoke with kevin cirilli today about the possibility of dr. ford testifying. >> i really hope dr. ford changes her mind, we need to have the hearing. and i think you make of people deserve to have that hearing. mark: senator kennedy added, "we are doing all we can to be fair, but we have to be met halfway." the leaders of north and south korea wrapped up their summit by announcing the next steps toward getting rid of the nuclear weapons in the north. kim jong-un has agreed to shut down a missile testing facility and will also close a nuclear facility, depending on u.s. actions