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tv   Bloomberg Markets Balance of Power  Bloomberg  July 29, 2020 12:00pm-1:00pm EDT

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tv and radio audiences worldwide , i am david westin. welcome to "balance of power" where the world of politics meets the world of business. the ceos of the four biggest tech companies are set to make -- meet lawmakers. they will be testifying remotely before the antitrust subcommittee of the house judiciary committee about whether their actions have been anti-competitive. to set up this long and important hearing, we turn to emily chang. thank you for setting this up for us. one of my questions is what is the goal from the tech side, what is the goal from the judiciary committee side? emily: tech ceos want to present their arguments and we have seen their opening statements, all of them playing up the composition they face -- the competition they face. saying tech is the most competitive industry in the world. the lawmakers have a lot of concerns about these companies
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being anti-competitive. one thing i will mention is this will be happening virtually, so there is less of a chance of an unscripted moment where someone might be caught off guard that might be particularly revealing. we are expecting the committee members to make their opening statements and in this order we will hear from amazon ceo jeff bezos, alphabet ceo consumed our andai, apple ceo tim cook, facebook ceo mark zuckerberg. then each of the lawmakers will have five and it's to question anyone. there will be safety in numbers. we are expecting this to go for several hours. there might not be a ton of substance given that they can only scratch the surface. mark zuckerberg will be playing up the threat of china. he has said this before that regulation of big u.s. tech companies will give chinese companies an advantage.
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sundar pichai also paying up competition from other search engines, but also search composition on -- search competition on travel sites. tim cook will talk about the opportunity the app store has given apps, most of which are in the app store for free. opening testimony is a little -- david: i am afraid we have lost emily chang because of a technical problem. she was setting up a very important hearing to happen later today, although we are now informed it may be delayed. it was supposed to happen at 12:00 eastern. now there are reports it will be postponed until 12:31:00. the same thing happened with the judiciary committee yesterday when they were supposed to be questioning bill barr. that is because there was a traffic accident to the chairman was involved in. the issue is the size of tech,
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whether you can have this big of a tech company, all four of these companies are so huge, not have it be anti-competitive. where there competitive actions taken in terms of instagram and whatsapp? they will be in the hot seat and you have a lot of people questioning. you have one person being asked a question by a lot of people, it sometimes favors the one person. we will be covering that as it happens in washington. it has been delayed at the moment. we are now going to go to general electric. general electric announced its earnings earlier today for the second quarter. it was a rough order for general electric as it has been for so many companies. it did conserve cash better than had been anticipated. the company managed its way through the aftermath of that pandemic. we welcome ge chairman and ceo larry culp. thank you for joining us. it was a rough quarter. that is not to be unexpected. what i want to ask you is you
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leading a fundamental transformation of general electric before that. what is it like to do that in the middle of a profound recession triggered by a pandemic? that is hard. larry: is hard. it is good to be with you again. thanks for having us on. i would say the second quarter played out as we thought it would. certainly challenging our aviation business, our health care business, we are on the front lines of care. our better in two of cash generators. the turnaround to power renewables continues on paste, but we came into this thinking this was an opportunity. even though the near-term pressures would be acute, we wanted to make sure we took full advantage of the situation, accelerate the transformation of ge. if you look at the pace at which
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are new leaders have assimilated into the business, the adoption of principles across the organization, more broadly to serve customers, a host of examples. when the dust settles, in addition to the cost and cash preservation actions we are we did we will see accelerate the transformation of this company. david: accelerate the transformation, but the results may be delayed. it extended the timeline when you expected a turnaround. aviation has been hit so hard by the pandemic, and it is necessarily hurting boeing and airbus and therefore ge. larry: there is no question we will need more time to deliver the financial results we desire. year thinkinghis aviation would continue to lead the way into 2020. health care right behind it. with the turnarounds underway gathering momentum in power and up theles, bringing
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other half of the company. that got put completely on its head. the pressure we have seen in aviation services and gas power services, even in our diagnostics business has been acute. those three businesses together have been down five times what we have seen more broadly at ge. our higher-margin businesses. we will need more time, but i think we will make good use of that time to complete the transformation. our confidence is as high as it has ever been if not more so, but we are mindful we will need time. $41 billion of liquidity, having it extend another $10 billion of near-term maturities with $22 billion in debt reduction in the last year, we think we have de-risk the company and positioned ourselves to weather the storm. guy: does it change -- david:
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doesn't change some of the emphasis in your transformation. it looks like aviation will not lead the way. health care is terribly important. does it put health care higher in your list of priorities as opposed aviation? in the nearesses will play different roles, but in the operating model we are implementing, it is a bottoms up approach. what we need to do in every business is crystal clear. the way it all adds up in 2020 or 2021 may be different than what we thought when you and i were together in early march. certainly we are having to make adjustments in aviation. we talked about the cost and cash action there. out,illion of cost coming $2 billion of cash and saved in the process. unfortunately we are looking at the departure of probably a quarter of our team.
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positions tonful take but once we clearly need to in light of demand changes. in light of what we need to do another business, that work continues in their progress in the short term will be more important than it might have been otherwise. david: within the business of aviation, does it change the arc of that? you sell jet engines and you have maintenance. i think you make a lot of your money off of maintenance. as you talk to boeing and airbus , does it change the emphasis between the one and the other? larry: not really. what i've been so thrilled to be a part of these last months is what has been a multi-decade leadership on the part of ge aviation in the industry broadly defined. we want to continue to lead this industry. how do we do that? of whatgy is the fore we've been able to do with our customers, and we service our
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engines often over decades in close proximity with our carrier customers. that is a great set up to be so close day in and day out with our customers. the business will change. we will see less aftermarket activity. airbus, we will be talking about a different trajectory over the near-term than they were nine months ago. that is all right. we remain confident we will see to commercial aviation activity levels, passenger miles and the like. that will be good for everybody and we will be a part of that. david: is there any way for you to get some sense of what that time horizon is like for aviation? at this point there are semi uncertainties about travel and the disease itself. how can you plan in a world -- who knows, the virus gets a vote. larry: there is no question.
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we do not know how the virus will play out. we do not know how governments will react, we do not know how the public will react over the aloneeveral months, let between the time we sit here today and a vaccine. we have not been one of those companies who have said we are ready, we are assuming in the second quarter of 2022 or the third quarter of 2023 we know things will get back to normal. we know things -- we know this will be a prolonged recovery. we plan conservatively and make her way through. i do not know any other way. david: let's turn to power, which is an important part of general electric. two categories. one of the things that jumped out at me is if your order book was down double digits everywhere except offshore wind, which was up 30%. what was going on? larry: we have two segments.
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i will speak to renewables first. we saw very good activity levels in our onshore wind business. if you look at the second-quarter numbers, our shipments were up on a unit basis. we have an important role to play in the energy transition and the decarbonization of a global economy. onshore wind well-positioned in that regard. we have a significant investment . we have a foothold in offshore wind and want to do more over time. we have other businesses, hydro businesses, i think we've made some turnaround. we need many good quarters of the same. on the power side, we do a number of things. the role we play in the energy transition is our gas power business. it was a soft quarter relative to new equipment. particular in comparison to last year.
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we think the second half will be better. we were also hit relative to our ability to --r even the travel restrictions. some of that comeback in the second half. overall we think these businesses are well-positioned to play a vital role as the world pushes a serious decarbonization effort. david: i want to ask you a political question. i will not ask you who you are for or against, but you must be taking a look at the possibilities of a trump presidency or a biden presidency. vice president biden has brought out an aggressive green energy plan that would have a lot of investment. $2 trillion over four years. with that make a difference in ge's business? larry: we are still digesting a number of the proposals the campaigns have out there. we have a long history of working with democrats and
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republicans. ge has worked with 20 presidents. we take the long view. pushere was a significant for more decarbonization spending, i think we are well-positioned in a number of our businesses, not only of benefit, but to lead. has causedpandemic so much of a dislocation, certainly in the united states. we thought we were coming back out of it and now we have hotspots returning. as you look at your business, are you seeing any sensitivity of flareups in california, in texas, and florida, in arizona? larry: we have not seen impacts in our order books, but what we do is we have higher frequency data that gives us a look at departures of our install base within aviation by engine class, by region. we look at the utilization in health care of our m.r.i. and ct
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scanning install bases. we have seen a slowing in departures. we have seen softness in health care utilization. it has been the last several weeks -- we do not know how that plays out. health care has come a long way from where we were a few months ago. those numbers are near pre-covid levels. departures is much further off. , bute watching carefully order impact, too soon to call that. david: we usually talk about china because you have a fair amount of business in china. china appears to be ahead of the united states and recovery. certainly with aviation. i know you said it is not down as much as it was. can we learn something about what we are seeing in china or is it two different creatures? larry: a host of different dynamics in many respects, not so much in others. if you look at the data we see again, i get a daily report on departures.
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china over the last seven days compared to a pre-covid period, we are down high single digits. that is a long way from where we are in the u.s.. , there is nottell a vaccine in play in china. you have seen a number of other efforts to reassure the public, and folks are flying. there will be an opportunity to learn from that experience as we do all that we can on a global basis to reassure the flying public as to the options they have if they think about tonsportation in the monsteths come. david: that is larry culp, ge chairman and ceo. ge also announced earnings for the second quarter. i talked with the cfo. we will hear from her next. ons is "balance of power"
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bloomberg television and radio. ♪
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david: this is "balance of power." general motors reported earnings and i caught up with chief financial officer dhivya suryadevara about why the company did better than expected in a difficult quarter. dhivya: the results reflect the action we have taken over the last several years to lower our breakeven and improve the earnings power of the company. well-positioned coming into this, and that is what you see reflected in the results. sales, weint on
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bottomed out in the march to april time frame and results have been improving steadily from a sales standpoint since then. for the market overall, and particularly for the pickups as well, in just a few data points for you. pick up sales were flat in the march, april, may timeframe from a retail standpoint, and june was down 20% because of tight inventories and we are back to flat in july. it shows that segment is pulling away from the rest of the overall as well. we are cautiously optimistic on the recovery of the industry overall, and clearly a very fluid environment. both on the production side and the demand-side we are seeing a steady recovery. david: to stay on the demand-side for a moment, the entire economy hit an air pocket because of covid-19.
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do you have a sense overall -- we know general motors have been doing well and pickups. when you think you will be back to where you work before the pandemic in terms of demand for gm vehicles? dhivya: it is difficult to say. it is a fluid situation. we think that for the second half of the year the light vehicles will be around 14 million units. coming in for the year, we are expecting closer to 17 million units for the year and now i think it be closer to 14. it is trending in the right direction. it is difficult to call when it will be back to pre-pandemic levels. david: what about consumer credit. vehicles. are you seeing increased delinquencies in people financing? dhivya: rgm financial arm has stepped in -- our gm financial arm has stepped in and provided support to dealers and consumers. we have received request,
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especially in march, april, and may for deferrals of payments and we have had at least extension requests and we have been honoring them. what we are seeing more recently toward the end of the second andter's people coming back a lot of the requests we have seen, our consumers have paid in full. we are watching this closely, but people have, especially towards the end of the quarter, people have been getting closer to normal levels of repayment from a financial standpoint. david: that is on the demand-side. what about the supply-side. i know you lead with the pickups. where are you overall in your rate of production? put extensivee safety measures in place and they have been effective. this allows us to get back to levels we were prior to the
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crisis over time. pickup facilities were running three shifts as well. back tobeen able to get the rebuilding inventory, which is the focus, and to do so in a safe way. david: that was the gm chief financial officer dhivya suryadevara and this is bloomberg. ♪
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david: this is "balance of power." we want to check in on the markets and see how they are reacting in anticipation. scarlet fu is here. scarlet: it is a waiting game. everyone is waiting for the federal reserve decision even though they are not likely to make many changes. there also waiting for the big
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tech to take the stage. you're seeing a recovery for yesterday's decline with technology and small caps leading the way, at least given what we have seen in the cat -- in the past. amd is leading the chipmakers higher. we are also seeing tesla a. -- we are also seeing tesla up. in dollar is weaker by .25% the direction of the dollar has been down of late. in terms of what is driving at lower, certainly the federal reserve extreme dovishness is one reason, but we also have negative real rates and we are seeing covid numbers in the united states do not help making other markets more attractive, other economies as well. we have a chart i wanted to pull up because it is something that has been making the rounds. some people say the widening budget deficit is a leading indicator for the dollar's direction. that should be the widening budget deficit in orange -- that
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is not the right chart. never mind. we will bring up another one. that is the s&p 500 moving along with the balance sheet assets of the federal reserve. as the fed has tapered off some of its buying, we have seen the s&p 500 stall out. david: there is the deficit alerting. thank you so much scarlet fu for that report on the market. we are about to get in fomc decision in about 90 minutes. we will talk about that and what we might expect with our colleague, michael mckee. ons is "balance of power" bloomberg television and radio. ♪
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90 minutes from now. for that, we call -- we turn to michael mckee. the fed often does not want to make news. is that true here? michael: the fed will be on time. may be. 2:00 p.m. today. do not expect a lot of news in their statement. they will acknowledged the fact that the economy has turned south since their last meeting at the beginning of june and since the beginning of july. whether it would change anything else in their state is an open question.
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most people think they are likely to wait until september to make a change in their guidance. i'm always struck by the fact that in advance of this meeting, it will announce they will extend the emergency lines of lending. is that a way of saying we took care of that, there is nothing left to say? michael: it may be. it may also be assigned that the fed thinks there is something wrong with the economy. those lending programs were supposed to expire at the end of september. here is the fed telling us we think we will need them longer. most of those programs are not seeing much take up by companies or by wall street. there is not much going on with those. sense, they are not critical to the functioning of the economy, but the fed may think that they might still be going forward. david: i ask this question because you have covered the federal reserve for years. they have sat there yesterday and today as they give their announcement today. are they conscious of the fact that we have a big question with the fiscal stimulus pending on
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capitol hill and any definitive move they make today could read against that one way or the other? michael: sure. i don't think they are worried about how any move would be perceived, what would be the impact of a move if the congressional action moved against what they expect. i think the base case is that there would be an additional stimulus program but whether it is large enough to have the impact the first bill did in there for keep the economy on a more or less even keel is an open question. the fed might not want to use up any ammunition or send the markets one way or another given that there is risk ahead. david: one of the things that has been speculated about is whether the fed would be changing rates but might be saying, going forward, we are going to say we will make our decisions based on what is going on with unemployment. not on autopilot, but more specific guidance. what is the likelihood of that? michael: pretty good.
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the fed tried that in 2012. they said on employment had to be below ex percent and inflation will be toward their target. -- 6%. if you remember for some time to come, as the language that they use. they may experience -- experiment with tying it to a state dependency because they want to let people know it will be a very long time before they start raising interest rates. the interesting thing is we are starting to see their reaction to that in the market with the dollar falling and people concerned that maybe if a vaccine is developed and the economy gets better more quickly than the fed things, we could see the fed be forced to raise rates sooner than they anticipated. remember what happened when they talked about it. david: it is interesting that you point that out. it seems absurd to talk about inflation. some people are talking about inflation. seeing what is happening with the price of gold. the fed is not oblivious to what
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is going on there. what are they looking at for any indications we might be headed toward inflation down the road? achael: it is going to be supply-side problem. if the economy comes back and there is not of goods produced because we have been in lockdown, when we go into the gdp report tomorrow, we will see depressed inventories. if that happens, then prices could get rid of more quickly than anticipated. we never really quite know what is going on with the energy crisis and what the future will hold. there are possibilities to see some kind of inflationary scenario. that it develops slowly. they went several years with zero rates after the last crisis without inflation. their bet is they can react quickly enough if it starts to come back. david: the fed may not do anything today. what might they say about the economy? we are seeing indications of some coronavirus coming back up in some states. we are seeing hesitation in some of the frequency data.
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what might they tell us about what they think is going on in the economy? michael: the statement is always an assessment of the economy. you will see them note that perhaps labor markets have started to soften again. that consumer spending is weak. you will not see them go too far because at the same time they want to be realistic. they don't want to scare people. they don't want to say the sky wall street -- watch them take a somewhat measured approach at acknowledging reality not extrapolating too much from that. i think the language of the overall assessment and the idea that there are downside risk ahead will change. david: thank you so much. we all want to hear when it comes to the fed, that was bloomberg's michael mckee. don't forget to tune in later today with our special coverage, the fed decides. for bloomberg first word news, we now go to mark crumpton. are you there? >> thank. mitch mcconnell is indicating
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that democrats and republicans are not close on a new stimulus package. leader mcconnell said nancy pelosi keeps moving the goal post on the legislation. mcconnell is demanding that changes to liability law include wholesale in the legislation. pelosi says that shows mcconnell is not serious about reaching a deal. federal tactical teams that have hassled protesters will begin pulling out of portland, oregon. the governor says the agents will begin leaving the area tomorrow. the arrival of federal forces to protect the courthouse after weeks of demonstrations outside, protesting the death of george floyd in police custody in minnesota infuriated local officials who did not ask for the federal deployment. the united states plans to withdraw 12,000 troops from germany, about half of them will stay in europe and the rest will return to the u.s. leaving 25,000 americans in germany.
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president trump has been wanting the cutback for some time. he says the germans have not been paying their fees to nato. the withdraw will take years ending it could be reversed if the president is not reelected. the world's first officially approved vaccine for the coronavirus may come from russia. russia says it plans to register a vaccine as soon as the second week of august. officials say it could be approved for civilian use one week after that. while the vaccine has been touted by developers, the data has not been published and the speed with which developers are moving has raised questions in other countries. global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. david? david: thanks. coming up, the antitrust hearings involving the tech industries and before biggest companies. we will go back to emily chang,
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that is coming up next on bloomberg television and radio. ♪
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♪ this is "balance of power" on bloomberg television and radio. the shares of starbucks are rallying after the earnings say that the sales have bottomed out. i spoke with the ceo earlier about what the company had done to help it cope with the pandemic. , we sawe united states what we called substantially recovered as being back to where we were one year ago and that
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that would happen in the first half of our fiscal year of 21 which would be by march of 2021. in china, it is one quarter earlier. this path will not be linear. every month we have seen improvement. in the month of july, i think we had a -19%. july, that accelerated the eight -14%. -14%.t accelerated to a as we accelerate, all of those things are helping us give more capacity for these convenient experiments -- experiences. david: you have been in china a very long time. as you say, they are ahead of the united states in terms of recovery. taking a look at those two. in the u.s., we had some flareups, or than we have seen in china. what is the threat to starbucks recovery for things like what is
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going on in california, texas and arizona? >> i will point out that china has also had that. beijing had a similar flareup. what we have done is we have built store protocols and the operating capabilities for us to carefully dialogue the experiences for customers like limited seating or dial it back if we need to dial back in a certain market for a period of time while the medication is taking place. we are able to do that on a store by store basis. what we have done is we have built those store protocols and operating capability into the fabric of how we run the company. miami,e was a flareup in we could turn the dial back and stay open and serve customers safely. as the curve flattens, we can dial back up. we are doing that in 32 thousand
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stores around the world and it is working. i am confident we have built the capability to navigate in a covid world until was a vaccine and more therapeutics -- until there is a vaccine. we have done that in the last three to four months. david: you mentioned the drive-thru's. you are building a lot of drive-thru's. are we witnessing a longer-term ?trategic pitted -- pivot kevin: i don't see this as a pivot away from where people want to come sit in the starbucks and be part of the community. if you look at pre-covid, roughly 80% of our customer occasions were for customers who wanted their food and beverage to go. 20% stay and sit in the cafe.
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we are basically complementing that third-place experience with things we did seven or 8 years ago with drive-thru. we did about six years ago with mobile order for pickup. now we are building a smaller format of a store called starbucks pickup. in china it is called starbucks now. these smaller format of stores, you can think about them as a walk-through, similar to in a suburban market where the stores all -- are walk-through. they would be within a three to five minute walk of a traditional store with eating in the cafe. you as a customer can decide if this is an occasion that i want to share my food and beverage with a colleague or a friend and number on the starbucks, can do that. if you are on the go and you want a convenient experience, you can go through the pickup store. we are blending these store formats to create a network of that. those store formats are serving the different needs that our
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customers have of starbucks. ivot away from it. it is complementary to the starbucks experience. david: that was our conversation with kevin johnson, ceo of starbucks earlier today. we are turning to capitol hill where the ceos of four tech companies are due to answer questions about whether they have become anti-competitive. we want to turn to emily chang, anchor of bloomberg tech. we were interrupted before. i am delighted you can be with us. let's talk about this. all are all big, they are tech. how can there be a true line from this the station on these four companies? emily: that is a very good point. each of these ceos could have their own hearing. the issues are very different. with facebook it is misinformation and advertising. with google, it is advertising
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and search. with apple it is the app store. amazon it is how these companies treat third-party sellers. jeff bezos is someone we will be watching, the ceo of amazon and also the richest person in the world because he has never testified before congress before and there are a lot of people who want to hear what he has to say in his prepared remarks which are also a little bit different from the rest. he talks about how his parents invested in amazon in the early days, atypical and true american success story. of thelso the owner washington post. that could bring out more idolatry from the lawmakers, we don't know. it is definitely going to be interesting to see how these lawmakers throughout their questions because they can basically ask anyone anything at any time so there is a chance that this could be all over the map especially given that this is a virtual hearing. you will have some of the lawmakers in the room. the hearing has been delayed
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because they are cleaning up from the last hearing. you have staffers inside washing it down but all of the ceos will be calling in virtually. david: your comments and suggested there is another person not in the room that might be as important as the president. he has not been shy in his criticism of these tech companies. what is the potential influence of the president here? emily: absolutely. last half hour we got another tweet from the president focused on big tech. the president tweeting, if congress does not bring fairness to dictate which they should have done years ago, i will do it myself. in washington, it has been all talk but no action for years and the people are sick and tired of it. of course, the president tweets -- the president's tweets themselves have been the subject abouttroversy -- the one looters and shooters,
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threatening violence on the american people and protesters in washington. facebook has made the decision to let those posts stand on flagged, not behind a warning of any kind and that has kicked up a lot of controversy. facebook is in the middle of an ad boycott where you have massive advertisers who have pulled their advertising from facebook for the month of july and some for the foreseeable future. you can expect facebook to be the subject and mark zuckerberg in particular, probably has the most higher from these lawmakers and alsost ire concerns from democrats as well. biden alsoen joe taking aim at facebook. in fact, president trump has already used executive powers to sign an executive order asking the s&p to take a look at old laws that give companies like facebook and google and twitter
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protection from liability over the content that those users post so we can expect that to be a really hot button issue today. david: it is a fascinating point. this is washington where the rules are different. but this is the antitrust subcommittee. theoretically they are supposed to deal with competition issues, not the substance of speech. i'm wondering whether there will be questions that have nothing to do with antitrust competition at all, it has to do with political bias. emily: absolutely. i talked to all the companies. they are expecting questions to be all over the map. it is not all going to fall under the antitrust umbrella. we know that some of these lawmakers will have personal bones to pick with these companies, whether or not one of their posts personally was flagged or not. it is interesting hearing from the critics as well. you have ceos of other big companies like spotify, epic games, the maker of fortnite.
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i have spoken to these folks in the last couple of weeks and months and they have been speaking out about these companies saying that apple is un-american. apple and google ra duopoly. -- are a duopoly. that is what these lawmakers have been hearing. on the other side, these companies have massive lobbying operations and they have turned over a voluminous amount of documents, millions of pages stating their case to make sure that these lawmakers are informed and we should hope that these lawmakers are going into this with some level of the right information. in the past when mark zuckerberg testified before congress, some lawmakers did not understand how facebook's business model actually worked. seeill be watching to whether or not they understand
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the business and the point they want to make. david: that is a famous exchange. how do you make your money if you don't charge for it? that was quite an exchange. thank you so much. that is bloomberg technology anchor emily chang. we will bring you the hearing gets underway. coming up, stimulus talks as republicans indicate that a deal is not likely anytime soon. ons is "balance of power" bloomberg television and on radio. ♪
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david: this is "balance of power" on bloomberg television and radio. the president said earlier today that republicans are not even close to resolving the differences over a stimulus package and that congress may have to pass some sort of measure to prevent aid from running out. lloyd davidson -- laura davidson joins us. you really have experience
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covering congress. is this the normal things that they say they do not have an agreement or do they have some real problems here? laura: it is a little bit of both. we have seen that they are running up against a deadline. they have a resource -- recess coming up in august and that is strong incentive to reach a deal. they are still very far apart. republicans do not agree with themselves. democrats hold a lot of leverage. unequalreally negotiation and you have members on both sides who are upset about how this is going. david: i'm sure that all members of the congress and senate are devoted to doing the right thing for the people but they also have to be thinking about the election for the house of representatives and one third of the senate. anything,n't get doesn't that hurt the people who voted against it? laura: it really does.
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there are two things that play. i remember is evaluating how this plays in their district. all concerned are they about unemployment. each member is making their own calculation. two, they want to get back to their district. they want to have some good news to campaign on. august was a huge month for campaigning and doing events. this year it will look different without as many live events. it is still something that is weighing on them more so than the pandemic. david: this is the fourth round of this, right? check my memory, but i think on the first three we had nancy pelosi come out with a strong position. a lot of republicans disagreed and the move toward pelosi. is that likely here as well? laura: yes. the republican bill that came out this week, you can see it is already dead on arrival. republicans are saying that money for the fbi headquarters
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across the street from donald trump's hotel, that is one of the items that republicans are ready to cut. they are still far apart on some of the key policy issues, how much to have the unemployment benefits be, stimulus payments, who should get those as well as money for state and localities. democrats want $1 trillion. republicans don't want to spend more than $1 trillion on the package. david: thank you so much to laura davison. on the second hour, we have a lot coming up. we still have the hearing coming up shortly as well as an fomc meeting about one hour from right now. that does it for bloomberg television. this is bloomberg. ♪ businesses are starting to bounce back.
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a.m. in hong kong. welcome to "bloomberg markets." we are moments away from tech ceos testifying before congress. fors bring in emily chang more on what we can expect. emily, it will each have a message want to get across that will potentially try to oppose what the representatives will be making out. each one has something slightly different. talk to us about what their motivation will be. emily: absolutely. the hearing has been delayed for about one hour and will get underway in any second. we are standing by. staffers have been cleaning the room. you will have half of the lawmakers in the room. the rest will be calling in. in four ceos will be dialing remotely. because this is virtual, this is a chance

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