Transcripts For BLOOMBERG Bloomberg Markets Americas 2024071

Transcripts For BLOOMBERG Bloomberg Markets Americas 20240713

After the judge turned down his bed, assange said he did not understand the proceedings and said the case is not fair because the u. S. Government has unlimited resources while he does not have easy access to his lawyers or documents he needs. Global news 24 hours a day, onair, and tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. Im Mark Crumpton. This is bloomberg. It is one 00 in new york, 6 00 in london, 1 00 in hong kong. Romaine bostick in for vonnie quinn. Welcome to bloomberg markets. From bloomberg World Headquarters in new york, here are the top stories on the bloomberg and from around the world that we are following. U. K. Prime minister Boris Johnson denied a second vote on his brexit deal but there is another crucial vote tomorrow on the divorce plan. Goldman sachs dealing with an unwelcome string of insider charges. Mixing business with politics. Facebook Ceo Mark Zuckerberg privately recommending several hires to Pete Buttigiegs president ial campaign. This as the tech ceo faces attacks from both sides on misinformation, privacy, and election meddling. Kailey leinz is here. Tell us what is going on. Alley the rally continues, three major averages near the highs of the session. The s p 500 above that 3000 level. Tradesm in the market on with President Trump saying he hopes to ink a deal with china next month in chile. Take a look at dow transports. 1. 6 , gaining for a fifth day. If you hop in the terminal, take a look at how transports have performed relative to the broader dow jones. Outperforming for five days in a row, a wide range of outperformance. That index is being led higher by railroads. Csx and Union Pacific up by 3 . Boeing is a big drag on the dow. Down another 3 or so today on some downgrades. More woes for the 737 max. I want to look at tech. 19 of the 20 largest stocks in the nasdaq on friday were lower but we are seeing a rebound today. Apple is up 1. 8 , fresh record. Nvidia and rpc also up. On those oil companies, lets took a look at those. Halliburton out with a Solid Earnings report this morning. Growing its international market. That has to hire peers higher. Getting an upgrade at citigroup on an attractive valuation. Romaine thank you. Lets turn to the u. K. , another blow to Prime Minister johnsons exit plan. John bercow has rejected the government plan or a second vote, saying members of parliament have already debated and voted on the plan. Here with the latest is emma chandra from westminster. Him tonot really expect move forward with this vote today necessarily, but it did appear Boris Johnson was counting on this to further his cause. Right. Oure absolutely we had been expecting the government had wanted another meaningful vote on his brexit deal today. That was denied by the speaker of the house of commons, german or co, saying it was essentially the same question that mps were asked on saturday. He cited Convention Going back just a little historical analysis for you. We will not have that vote tonight. It now means attention moves to the Withdrawal Agreement bill. This is a massive piece of legislation that would allow the brexit deal that was negotiated by Boris Johnson and the eu to become part of u. K. Law. In the last few minutes, you have heard from the leader of the house of commons, jacob reesmogg, a member of Boris Johnsons government, setting out the timetable for that. We understand there will be a vote where they will publish the Withdrawal Agreement bill, and then a vote known as the second reading tomorrow. The government expects to win that. That would be seen as a victory for Boris Johnson and the government. Following on from that would be a programknown as motion. That would allow them to accelerate the process by which this bill would become law. Thinksly, the government they can accelerate that process, and will be able to get all of the relevant legislation passed before the october 31 deadline. Obviously a lot of moving parts but we have heard some relatively positive comments from a lot of the folks on the european side. When you consider some of the praise johnson is getting from the European Union members, what is the main impediment to getting this done . Right. Ou are absolutely a lot of europeans positive, they want this deal to go through. They also want brexit to get done. They dont necessarily want to give another extension. Boris johnson has had to ask the European Union for another extension just in case. Would come from westminster mps on the opposition side. We understand some Opposition Mps are considering attaching amendments to this Withdrawal Agreement bill, and that could change it so much the government may pull it, and then ask for an extension, which means we would see a general election in the u. K. Before we see brexit have been. There are a lot of moving parts and we will have more of a sense on tuesday once we have the Withdrawal Agreement bill being brought to parliament, when we see what sort of amendments opposition may try to attach to it. Romaine our thanks to emma chandra. Lets turn to the market. Many factors coming into play when it comes to evaluating the stock market, but is a good time now to be buying into the longterm . Joining us now is John Buckingham over at afam capital. Always great to get your thoughts. When you look at where the market has been in the u. S. , bumping up against these alltime highs but not quite finding a way to break through, im wondering what you see as the shortterm springboard that is going to move the market decisively higher. Obviously, we are at the mercy of the geopolitical events. If we get a trade deal with china, that would be the catalyst to take a significantly higher. Were always focusing three to five years out. Stocks are really attractive hear from a valuation perspective, despite being near alltime highs. If you think were Interest Rates are, stock prices should be content significantly higher. Mutual fund flows, people are not optimistic about stocks. People have been bailing on ixedrate it there is not a lot of euphoria that we have seen in the markets. I think stocks are under owned by investors. If anything, we have had a bubble in the bond market, where you think about where Interest Rates are in the u. S. , and then you think about all of the negative yielding debt around the world. Those numbers dont lie, but you have people looking ahead to the current earnings season. The prediction is for a 3. 6 aggregate drop in earnings for the s p 500. 20 multiple on the s p 500, and that scares people a little bit. In thisreached a trial earnings decline, is there a reason for people to get back in now . John so far, earnings have been good, when you look at last weeks banks earnings. Most were expecting them to be pretty depressed, given the Interest Rate issue. They usually do, will come in better than expected. You mentioned the p e ratio. When you think about where Interest Rates are, what kind of yield are you getting on cash, what kind of yield are you getting on a riskfree instrument like the 10 year treasury . When you talk about a Money Market Fund yielding 1. 7 or so, 5 ,ared to 2007 when it was or 2000, when it was 6 valuations can be a lot higher in my mind when Interest Rates are lower, as they are today. I just dont see rates rising substantially from here. The fed has been very accommodative, and we have the economy muddling along, but i dont see rates skyrocketing from here, which makes stocks attractive. You think about dividend yield as well, our portfolio, we hold more than 3 and Power Forward pes are in the 12 range. Market you dont see skyrocketing, we obsess over the yield curve. We have seen this sort of steepening over the past few weeks. Do you think that is going to continue, or is this a blip on the screen . John there are a lot of factors that go into where the 10 year or the twomonth or three have in your treasury is at, including treasuries in europe. I dont see the yield curve being a problem. In our research, we looked at previous yield curve inversions. Believe it or not, it says you should buy stocks, and in particular value stocks, when the yield curve has inverted. It is not inverted today. The idea that the yield curve will predict the session has spooked a lot of people but is not supported by the historical data. That is coming that we spend time doing, looking at numbers, how stocks have actually performed, rather than just taking the headlines saying this look at it recession and i want to get out of stocks. This is the kind of stuff that has scared a lot of investors. We think the secret in stocks is not to get scared out of them. Even if we knew when recession would happen, we still should not get out of them based on historical precedent. Romaine when you look at the various sectors of the market, anything stand out to you better than others . John things that have been beaten up our areas that we would be more interested in today. Financials, we talked about the yield curve expanding, steepening. Financial stocks would look attractive. 4 ,orp is yielding over just had decent earnings last week, trading at less than 10 times earnings, and has a lot of income coming from the noninterest area. Financials are a, even some consumer stocks. People are worried about the health of the consumer, which translates into lower stock prices usually in those sectors come industries. Strikeow, we have the going on with General Motors, so gm is a name that people should take advantage of, provided they have a longterm trading horizon. Theas the kicker of Autonomous Vehicle area. These Companies Like General Motors are not necessarily like they used to be in the past. These are stocks that i think can do both for investors and should be trading for more than five or six times earnings. Romaine John Buckingham, great to have you on. Us today from irvine, california. Some breaking news out of washington, President Trump holding a cabinet meeting, speaking about a broad range of issues regarding the china trade deal. He says he hopes to sign that deal that month in chile where he is meeting with world leaders. Cap that members including Steve Mnuchin and Robert Lighthizer plan to speak with their chinese counterparts this friday regarding the trade deal. Lighthizer said the countries continue to have deputy level talks. Trump also talked about the situation in syria, the kurds, saying that something good would come out of it and as are his words. Banker sachs, a third arrested for Insider Trading. The exclusive bloomberg reporting. That is next. This is bloomberg. Romaine this is bloomberg markets. Im romaine bostick. Now to a bloomberg school. Goldman sachs facing a third allegation of Insider Trading in the last 18 months. A goldman Investment Banker was arrested friday for passing deal tips to a restaurant tour. Is someonehe story who covers bloomberg news. What is this case about . This was a relatively high level banker was a junior banker, your classic Insider Trading. Dealker who works on a big leaks the details of the deal. The contact gets a big gain. A few years later, the feds come knocking and he is arrested. Romaine what deal was singled out . Syngenta deal, a Buffalo Wild Wings deal. Anyone who had advanced information could make money. The person who received these illicit tips reaped about 2. 6 million in gains. Romaine one of the interesting things about the story, this is the third time in the past 18 months that you have had a relatively highprofile Insider Trading case involving a Goldman Sachs employee. That is the puzzling bit. These three cases dont seem to be linked to each other. Goldman sachs is a premier Investment Bank am a global dealmaking source. When you think about the biggest corporate transactions coming together, you usually have a goldman backing. When you have these coming together in a year, it is embarrassing. With a bank the size, are you always going to have an employee out there who may go rogue . Is this systemic or just three individual cases . There is a bad apple defense, but when you have three bad apples come you start worrying about the cart. There is nothing to suggest something systemic in the bank, ts, when you stack the fac that is where people start asking questions. In the previous case, you have the guy go to court and being sentenced to three months in prison. Before that, you had the case of the nfl linebacker conspiring with the banker. Romaine in the latest case, the other side of this involves a restaurant tour. What do we know about him, what do we know about him, what was his relationship with the banker . One of his restaurants is about 15 blocks down the road. I went there on friday, it looked pretty desolate. This guy was charged two weeks ago. At that time it was a sealed document. That has details of several other cases where he has been accused of Insider Trading. This is not the only banker caught up in this. It remains to be seen whether we have any other banker being snared from another highprofile like thet it does look prosecutors are going after a Big International Insider Trading scheme and are out to break up this ring. Romaine great reporting. Thank you. We want to bring you some breaking news. Mark zuckerberg speaking on a Conference Call, talking about how facebook will ban advertising that aim to suppress voting, talking about a lot of the efforts they are taking to protect the next election. The company says it is removing fake accounts, fact checked labels will appear on some ads. The company will also label content from statesponsored media. We will talk about that next. From new york, this is bloomberg. Romaine this is bloomberg markets. Im romaine bostick. Lets get back to those headlines regarding facebook and its efforts tied to u. S. Elections. The Company Announcing it will label content from statesponsored media and add new fact checked labels. Bloomberg has also learned Mark Zuckerberg waiting into the democratic primary by recommending Campaign Staffers for Pete Buttigieg. We are joined by one of the reporters who broke the story, tyler pager. What is the connection between Pete Buttigieg and Mark Zuckerberg . They both went to harvard, did not overlap but had some mutual friends. In 2017, they were aged used by a mutual friend during Mark Zuckerbergs 50state tour. While he was in indiana, he drove around the city with the mayor and live streamed the conversation. That is where the relationship began. Romaine that relationship seems to have included zuckerberg recommending specific people to join his campaign staff. Who are those people that we know about . Tyler two people recommended and hired. They are both in the data part of the campaign, one of them worked at facebook, Silicon Valley startup, and the other work at the zuckerberg initiative, mark and priscillas private family foundation. She also worked in Democratic Politics in indiana. Romaine facebook has been under a lot of scrutiny. We have some sound from Elizabeth Warren, who has attacked facebook on a lot of fronts. It is time to break it up. Lets enforce the antitrust law. Big tech, Mark Zuckerberg, im looking at you. Elizabeth warren, her rhetoric and her general attitude toward facebook is reflected in a lot of candidates , democrats and republicans. Is there any risk for Pete Buttigieg to be seen as so cozy with the ceo of a company that a lot of his other candidates are against . Emerged as aok has punching bag for democrats in the election. Republicans have been critical of the company as well. To be fair, buttigieg has been critical of big tech, saying he is concerned about the concentration of power, but not as concerned as somebody like Elizabeth Warren. It remains to be seen what the impact will be. But it is interesting that zuckerberg has reached out for recommendations of staff, and that two of them are now on the campaign. Know facebook is having a Conference Call right now, talking about how they will address some of the issues with regard to policing the content on their site. It also comes when zuckerberg gave a speech at georgetown where he kind of shrugged his shoulders that

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