Transcripts For BLOOMBERG In The Loop With Betty Liu 2014120

His part, says that he is in no rush and that there is a danger in raising Interest Rates too soon. That is adding to the global selloff led by a plunge in chinese shares. The government taken collateral rules for shortterm loans. Since november 21. The price of oil rebounded slightly today. West texas intermediate climbed above the 60 a barrel market. Arabia inoined saudi cutting prices for asian customers. Asian buyers stop a controversial report on cia torture methods is set to be released today by Senate Democrats did it will include that the cia used extreme and terrorism extreme interrogation methods for terrorism suspects. Someone that it may make the United States target for retaliation. And the hackers who broke into sony movie studios are telling listed you interview. The the movie is set to open christmas day. The hackers have released personal data on thousands of people who work for sony in retaliation fo. What a way to get publicity for the movie. Stocks are falling around the world. Joining us is stocks editor mike reagan. Is this more about the header about china and Global Growth more about the fed were about china and Global Growth . The shanghai composite, more than 5 , worse than 2000 and. They said is always in the back of peoples minds. Even back on friday after the jobs report, adjusting reaction in the markets. If you look back you think of the market is up on good job news and good news is good news again. Wasnt it weird . The Immediate Reaction was down. It was indecisive. Even throughout the day, the s p raised its gain twice through the day and then didnt follow through on monday. Is good news good news again or bad news heart investors confused are investors confused about how they really feel about the fed . We will know for sure if the considerable time language will stay or if it is temporary. It is a very tricky thing right now. The u. S. Economy is doing well. Global economies are decoupling, not doing so well. To extend the places of the thinking a lot of people are wondering. It is interesting, the timing of all of this. Fed may consider removing this language. Withu think it has to do the fact that we saw the storm jobs report on friday or is regulation among people who are looking to next week and the fed meeting and saying hey, maybe this might be a time absolutely the jobs data makes you rethink the statement and that we need the considerable time phrase and it is not just the jobs data. A lot of the Economic Data recently has been pretty good. Even regular gdp data has beaten estimates to quarters in a row. A lot of ice on the fed next week a lot of ice on the fed next week. Thank you so much. Our eyes on the markets i know you will be. Congress pushes a funding bill by a thursday deadline amid infighting and the hearing in about 90 minutes over the Affordable Care act as well. The senate will be releasing a controversial report on the cias Harsh Interrogation Tactics after 9 11. Peter cook has more on a really busy day in d. C. Lets start with the cia report. This is a report five years in the making that a lot of people in washington did not want to see come out. This is a report to together by senator dianne feinstein, chairman of the Senate Intelligence committee, along with other democrats. They have been pushing for its release, finally doing so, we understand, later on this morning. President bush called for it not to be released. On the part of critics is that it is going to detail aspects of what the cia did that could incite violence abroad. Diplomats ande vice members overseas exposed to the mets and Service Numbers overseas to violence. Feinstein says that it is about transparency and that if we expose what happened it wont happen again. Mike rogers, her counterpart in the house, suggest that it should not be coming out. When you have four liters saint they believe it will insight right foreign leaders saying it will incite violence, cause huge problems, maybe even stop our cooperation as we move forward with the United States, our own Intelligence Community assessing that this could incite violence and that is a good indicator that we should release the report. The white house came out in support of releasing the report. Senator feinstein is making it public. We will wait to see what the following is after that. Mentioned about the funding bill, you have the thursday deadline. What is the latest on the front of a Government Shutdown . Some potholestill to get past before we can say we are all clear in terms of a shutdown. The final spending bill is a work in progress. There are details being ironed out between republicans and democrats. Know that john boehner will go behind closed doors with House Republicans this morning to update and on where things stand and what is in the bill. Fund theot fully department of Homeland Security and that his punishment for president obama for his immigration executive action. The reality is that this is not a done deal. There is a chance they could do an extension to give more time to negotiate a final details. Nobody wants to see a shutdown. The mood in washington is we want to get out of town but they are not there yet. There is always the opportunity for disaster. About here again, peter. Is third thing on the agenda something that is happening in about 90 minutes, the obamacare hearing. House republicans will grill this obamacare advisor, john gruber, jonathan gruber, the guy who called American Voters stupid. The now infamous jonathan gruber, who was an adviser to the administration when they developed the Health Care Law. They were using this advisory massachusetts and he has made very frank comments about American Voters and the process of the entire legislation, and he is going to have to answer some questions about those comments in front of the House Oversight committee today. Expect them to be grilled. He will be sidebyside with marilyn tavener, the head of medicare and medicaid. The administration is not thrilled about that. We will also hear from someone who has benefited from the Health Care Law at this hearing. This is House Republicans taking another big whack at the healthcare law before the and of the year. Peter cook, washington correspondent, setting us up for the day in d. C. Onetimers gets the spending bill passed, republican senator with good news. According to a Bloomberg Politics poll, the Republican Party is enjoying a high in popularity, with 25 of americans saying they hold a favorable view of the party, compared with 47 saying they have an unfavorable view. Joining us is the Bloomberg Politics White House Correspondent Margaret Talev and i guess they would take that as better than what they had before, right . It is a sign of the times when it is cost resolution that you cause for celebration that your fiveyear peak is below 50 . They are doing better than the Democratic Party. How much better . The Democratic Party sank in a purple to roughly about the same amount, eight points. Difference right now but the republicans have the edge and momentum working with them and that gives them a little bit of an edge going into the new governing year, when they take over both chambers of congress. But doesnt give them, margaret, a mandate . I would be real careful with that word. For republicans there are red flags to look at. Seeis that what you historically with republicans is americans who took the survey said that they think republicans are more antagonistic than the democrats and they think republicans are aggressionted by towards president obama is more motivated by his belief system. That is one red flag to look for. The other is that when you look ahead towards 2016, the Republican Party has approval of voters but individual republicans, it is not as clear. Theyre not doing as high in terms of their popularity and most americans dont know Republican Leaders individually as well. , andat is interesting certainly among the candidates for 2016, there hasnt really been one big standout like the democrats have with hillary clinton, right . Margaret, that one area where obama is benefiting from this, the voters say that they believe obama acted on his beliefs. Anything else complement terry to the president couple nunnery compli to the president mentary . Not good news for president obama. His favorability is at a fiveyear low. Maybe the one Silver Lining amid all the bad news about how voters are perceiving him on immigration, negatively, foreign policy, negatively, health care, still negatively, is that there is an uptick in terms of how people think he is handling the economy. Significant rise just over the summer or last spring. It comes a little too late for the Democratic Party. It with a nice for them to have this is before the election, perhaps, but president obama is getting more credit on the economy. Thank you so much, Margaret Talev on the latest bloomberg poll results. Moving and shaking this hour, royalty, the british and american kind. The duke and duchess of cambridge met with top royalty last night were talking about queen bey and jayz. And kate were watching an nba game not just any. They also met king james, lebron cavaliersse cleveland played the Brooklyn Nets could this did not stop lebron from nixing in mixing a political statement about the eric garnered. He wore a tshirt that said i cant breathe has protests went on outside the barclays and appeare barclays and appeared we will tell you which industries are the hottest and what oil could possibly do to spoil the party. Plus, a warning from amazon to u. S. Regulators lighten up when it comes to drones. We have been keeping a close eye on the markets this morning. They have been tumbling all across the world. Stocks in general have enjoyed it will run over the last you aars, raking in returns from 10 . But we are not likely to see that continue into 2015. In an exclusive interview with Erik Schatzker, his outlook for the markets. My forecast is that equities will go up 10 a year. Interest rates will continue to be suppressed. Ultimately, equity returns will be somewhat muted. You will not have that disparity of 2. 5 bond returns and 10 equities. I would have framed it the question was 2 to 2. 5, and the equity markets are of 6 to 8, prior to be probably high probability. But i believe there is a 20 risk that the economy does better and rates will 10 year rates will touch 2. 5 to three, in that range. You look in the eyes of the consumer when will the consumer start feeling that they . Ant afford to consume one thing i am a little bit certain from all the conversations i have had ceos from retailing, the retailing number that came out this past week they believe was entirely wrong, just bad data. I have heard that foot traffic was marginally better, and retail sales was much better you think the consumer is stronger than the data would suggest. No different than what we are witnessing with oil, transformation because of technology. Technology is transforming consumer behavior. Because of the internet, we dont need to rush and go out on thursday and friday on the weekend to buy things cheaply could we can buy things cheaply every day. All the retailers know that the internet is becoming bigger and bigger and bigger. I was talking to one of partners who lives in San Francisco who came out to that he, and he told me paid for wifi on the airplane and did all his christmas shopping. The buying patterns are changing. This is what is fantastic about how technology is changing the world. We are using past traditions as a means to assess the economy, and it is entirely wrong. I sense i sense quite a bit of optimism. Yeah, i am optimistic because what is the big surprise for me, despite my optimism, is that corporate profits have been keeping pace. We have not seen a gigantic pes. Se in we went from a very cheap equity market. Despite this dramatic increase value to, we are fair modestly above fair value. We are not at the levels we saw in 2000. You had true bubbles. Hair chester joins me now with more on his exclusive interview with blackrock Erik Schatzker joins me now with more on his exclusive interview with blackrock Ceo Larry Fink. He seems somewhat optimistic, but certainly some challenges. Larry is concerned about bond market liquidity. You have heard this from some Institutional Investors who worry that if there is a selloff, a bigger selloff, lets say, than what we saw in october, we would see more of what we saw in october, forced selling on the part of hedge funds who might be loaded up on certain credit trades, and a difficulty getting out of those trades. That, larry says, is his number one concern, number one risk going forward. He shares the concern we heard from other people, discussing in detail the blackrock outlook released this morning, about geopolitics, that there are zerosum outcomes in places like ukraine or the middle east. Blackrock says i guess one of the things that struck me in his Investment Outlook is the challenge of hedging. The idea that stocks and bonds are as closely correlated now as they have been in a long time. If we see a selloff in the stock market, were likely to see a selloff in the bond market where do you go . The idea that you have to invest in five times as much bunds as stocks to hedge against the selloff in the market. Ofwe will have much more your interview with blackrock Ceo Larry Fink today on market makers. We will be back in two minutes. You are watching in the loop live on bloomberg television. I am betty liu. Profits will plunge of the British Grocery chain tesco. Shares fell to the lowest level in almost 15 years. Tesco is trying to turn around its business after disclosing that profits were overstated. One of the worst investments for Warren Buffett over the last several years bmw production chief of take over next year. He will succeed norbert right offer. He has let bmw to record sales and earnings since becoming ceo in 2007. Amazon is trying to avoid the grinch that almost stole christmas last year. Remember that . It is taking more control of its by doing workm that was previously done by ups and fedex. Last year the rush prevented some customers from getting their packet is a time and they faulted ups for that. Bloomberg television is on the markets. Equity futures are the were following the extended drop we in asia, ledrnight by chinese shares on the plunge in shanghai. That flowed into europe, which fell over 1. 5 at many of the major indexes. As we get into the opening bell in about an hour. We are on the markets again in 30 minutes. If you are watching this show and i know you have the last few weeks, the strong jobs numbers will come as no surprise. Business leaders up and telling us about their need to hire more workers. We are doing a great job of hiring people. We have a lot of openings, and these are not seasonal holiday kinds of openings. These are permanent jobs where we need these people day in and day out. We have seen the labor market tighten and we are able to find quality people were the team. Gist. T the just the ceo of Manpower Group joins us from milwaukee. You released your employment report get you asked whether employers feel good about the job market. What do they tell you . They feel good about the job market in the u. S. This is the highest reading we have seen in over seven years. It is indicating growing optimism amongst employers in the u. S. It is very positive. Lets parse this out. Who is strongest and who is weakest . Anything to do with consumer buying strength is starting to see a pickup. Things like leisure and hospitality, the Retail Sector and the followon from the wholesale, transportation and logistics, moving goods around the country, these are sectors that are showing increasing levels of optimism. We are looking at a chart where thehic here, weakest im surprised by this. I am not surprised by education and health resources, particularly health care, given obamacare. But information services, white is that the weakest . It is weakest compared to where it has been, but overtime this is a area where employers have been very strong. It is also an area that has seen a lot of strength over the last two to three years. It shows a little bit less strength but it is still coming from a relative position still pretty strong. Mining . Out i saw a marked decrease in mining. Ofyou see some aspects mining coming down but that is a sector that did very well over the past year. It is something where into the First Quarter it is looking to be a little bit weaker but overall it is quite healthy. This is a recent development but it accelerated in the last few weeks, oil prices declining to the fiveyear lows. Some people say it is a 100 tax cut for americans. 400,000 jobs have been created in the last several years because of the oil boom. Ancillary jobs have been created because of the oil boom. Now we come to an oil crash. What happens to all those jobs . The jobs within the sector could be somewhat effective although we still have a lot of strength of their. Overall, the fact that the prices are