Transcripts For BLOOMBERG Bloomberg Markets 20160623

Remy stocks are up, and the pound is also up. U. K. Bans as from talking further about the referendum, that this is a snapshot of what the markets look like. 9 of for the dow, as well as the s p 500. The nasdaq up the most, 1. 1 . Lets look at what is happening with the s p over the course of the day so far. We are basically trading within a fairly narrow band, about 20 points or so. 2103 right here, about 27 points away from a record high, basically flying high. Lets look in my bloomberg with the s p 10 sectors. Again, a very broad rally across the board some from utilities, which are down. 3 . Up 1. 6 . S are materials up by 1. 4 . Energy up 1 because of oil and natural gas wells rising. A deeper dive into what is happening with the financials. Names arell, the big up. Citibank up by 3. 8 , its highest in about the past two weeks or so. Jpmorgan at its highest in about the past 10 days, up 2 . Wells fargo of more than 1. 5 . Materials are gaining, the top percent gainers right here. Mosaic is up by 4. 6 , company dealing in fertilizer. It is rising on the news that india is nearing a deal with the Eastern European country of ulurus on of belarus on potash. Freeportmcmoran up about 3. 2 because of the price of copper. Ppg is up, approaching 3 , the maker of protective and decorative coatings. Longbow is upgrading its stock from buy to neutral. Green across the board. Theyve end materials david materials gaining an energy gaining. Ramy wti up for two days in a row. Data set stockpiles fell less than expected. Nymex crude up a 1. 2 . Natural gas up by about. 8 . In this risk have an on environment, this is where things will be heading. Gold futures down. 5 . And the u. S. 10year yield is up by five races points. In two. Its highest david thank you. Vonnie first word news from mark crumpton. The u. K. Citizens are voting today in a referendum on the countrys membership in the european union. Or David Cameron was among those casting ballots. Fromlaw prevents us reporting of voting or analysis of referendum issues while the polls are open to your dweeb will be following the action as the results come. Special coverage starts at 5 00 p. M. New york time, 10 00 p. M. In london. The u. S. Supreme court blocked president obamas plan that would protect millions living in the u. S. Illegally from being deported. Justices deadlocked 44, leaving a place a Lower Court Ruling that the president overstepped his authority and effectively killed of the planned for the rest of his presidency. I the ability to reach a decision in this case is a clear reminder of why it is so important for the Supreme Court to have a full batch. I nominated judge Merrick Garland to the Supreme Court or the three month ago, but most republicans, so far, refuse to even meet with him. They are allowing partisan politics to jeopardize summing as fundamental as the something as fundamental as the impartiality of our justice system. America should not let it stand. Mark Hillary Clinton called the deadlock and acceptable, and she said she believed president obama acted well within his constitutional and legal authority. Ordered sixdge has people detained for another month and the investigation of last novembers terror attacks in paris. One of the detainees is mohamed abrinik, who is being investigated for suspected links to the suicide bombings that killed 32 people in brussels. There is a milestone in the flint, michigan, water crisis. Regulators with the epa have given the all clear for everyone to during filtered tap water. The agency is lifting a recommendation that pregnant women, nursing mothers, and children under six only drink bottled water to avoid lead exposure. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. I am mark crumpton. This is bloomberg. Vonnie thanks. With a cautious and uncertain of view of the economy. How much are investors weighing that guidance . Michael aurora from jones trading joins us. Floor perhaps the 2 is a and the fed may not be willing to go beneath it. Michael orourke joins us. Michael going forward, they are converged on 2 now, something relatively new. Basically, the fed wants to see the gdp continue to grow in this country, but i think they are hesitant to actually post a gdp forecast a low 2 . It will show that the Monetary Policy for the past seven or eight years has not worked. So we see these estimates converge on 2 on the longer run , and the only time we will see the fed predict gdp lower than that number is when they are already tracking there. To thing is, it is important recognize because when we look at these fed forecast, and they are not really real forecasts. They are biased to the upside. Vonnie do you think certain members might see lower michael thehat . Language they use when discussing forecast and willies, they believe it change policy to get us back to 2 . Same thing with the inflation rate. It will say the longer run forecast is this level because we believe we can manipulate policy to get us there. But the problem is all the forecasts are converging on that level. Thed than me pull up bloomberg. Jim bullard said fees pulling out said he is pulling out of forecasting model. How useful is this . Michael it is critical in gdp forecast. If you look at the path of forecast projections over time, they have converged from fourpoint play 5 and 25 to where itn 2012 is in the last year. The fed does not want to say the fed funds rate will go below 3 , because that is when the economy is normal and healthy. But they have already moved to that level, nothing jim bullard and the st. Louis fed are saying, maybe we are at potential gdp and are at that longer run capacity, and this is a new normal type of economy. Hence, he dropped his longer and andcast out and 2016, 2017, 2018th forecast and forecast are extremely low. This has been changing a lot. At least one fed increase, and that would be in december. And you see in the amount of moving around markets have done in terms of expectations. Do you see a fed hike this year . Michael i believe they do want to hike rates. But the problem is that they are afraid to because the economy is decelerating. And now there is this neutral zone where the economy needs to really ramp up for them to tighten our really needs to drop for them to reverse and start using again. I think we are pretty far from either of those levels of this current point in time. At this moment, obviously, data can change. Even if we get a strong jobs number for june, i do not think they will hike in july. It is not just the jobs numbers that have weekend. That have weakened. Sub 2 gdplooking at for the first half of the year, so i think the fed will probably wait. , 20,00059,000 last week less than what was forecast for the jobs report. It seemed that janet yellen was coming around to the notion that we might the in this time of stagnation. Are you sympathetic to that . Michael that is exactly it. As bad asure it is sector stagnation, but it does look like the fed is turning around. Showsd switching his dot us some of that or the path of the fed funds forecast, i believe, shows with the fed is thinking about longer run. They brought that down from 3 longer run, which is something i would not expect it to go below, and that shows that there is concern out there. , thankmichael orourke you very much for joining us. Jared huffmanman will join us. He is among the house immigrants who participated in a sitin over gun control. This is a live look in the senate, where voting has begun on a bipartisan guncontrol bill. Vonnie and u. K. Citizens are voting and a referendum on the countrys membership in the european union. We will be following all of the action as the results come in across a day of special coverage. After voting ends, watch coverage starting at 5 00 p. M. Eastern. And a special report at 6 00 p. M. New york time. Is is bloomberg markets. Earlier this afternoon, House Democrat wrapped of a twoday long sitin. House Speaker Paul Ryan addressed the event earlier today, calling it a publicity stunt. Say,er ryan other than to we are not going to allow stunts like this to stop us from carrying out the peoples business. Huffmanongressman jared was part of the sitin an joins us now. Talk about the motivations behind this sitin. Paul ryan they are calling it a publicity stunt. Congressman huffman a lot of segregation calling it john lewis sitins. This was a very spontaneous thing when it started yesterday morning. It has grown into a historic Inflection Point for this congress and for our country. Vonnie what did it achieve . Congressman huffman first of all, it got is moving into action finally, which for so many of us is a great relief and since of pride and purpose we do not often feel here in the house of representatives. I think it also focused the attention of the world on some very modest steps we can take to at least provide a little Better Safety to the American People from the gun violence epidemic, and it highlighted the fact that the problem is squarely in the republican majority of congress. They will not let things come to a vote. David speaking more broadly about this, a few months ago with paul ryan was named speaker of the house, i noted there was a lot of optimism about the fact that Congress Might go in a different direction here. How would you characterize the level of engagement that you and fellow democrats have had with your republican colleagues in the house . I think we huffman had high hopes, as well, when speaker ryan took over and told us the new congress was going to take on tough issues hadon, not hide behind this disgraceful rule. We thought many of our issues would get hearings and votes. That has not happened. That is part of why we did what we did. Vonnie we not used to seeing these kinds of scenes in the u. S. Legislature at all. It is more like what you might see in ukraine or other countries. Do you anticipate this will be necessary in the future to get things done . Congressman huffman it was almost unprecedented. It was very principled and peaceful and dignified, with the possible exception of some moments when a couple of passionate republicans came to the well of the floor, and it did begin to feel a little bit like the ukraine or the taiwanese legislature. Thankfully, it did not get too far out of hand. Cooler heads prevailed, and we stayed on message. I am very proud of my democratic colleagues. We were engaging in a very respectful and appropriate act of civil disobedience, you might call it, but it was for one of those historic clauses that, frankly, demands that to not do what we did would be inexcusable. David on the other side of capitol hill, senators are doing on legislationte advanced by republican senator Susan Collins, a lot regarding it is compromised to legislation on gun control. How does that look question or does it satisfy the concerns you have about restrictions on guns in this country today . Canressman huffman if it move forward, that would be great news. We would love to see votes and the vase on her compromise for basel and on any other bipartisan proposal out there we would love to see votes and debates. We just asking for a vote. Vonnie would you comment on the Supreme Court decision today to rule that the executive order taken by president obama was unconstitutional basically . Congressman huffman on immigration . Vonnie yes. Congressman huffman i think it underscores the highstakes of this years election. If you care about gun violence, about immigration reform, about climate change, any number of these highstakes, consequential challenges and opportunities facing the American People, this president ial choice really matters. Were remarks from nancy pelosi, and she is scheduled to deliver remarks any moment now. Can you get back to talking about the way this sitin can about . John lewis leading it. Tore was a real viralness this. Cspan cameras were not rolling. Republicans asked for them to be shut off. It was broadcast through periscope and other social media , despite rules in the house making that illegal. How quickly did it grow, and how did you get involved . Congressman huffman very quickly. It was very spontaneous. I went to the floor about 11 45. We heard that john lewis and Katherine Clark and a few others gathered and were trying to make some statements. So we went down to show our support. When the microphones and cameras were cut, the decision was made to remain and to move this into more of a sitin protest mode, and member after member started streaming to the floor. Thankfully, some of our younger members who are very tech savvy figured out there were applications that could continue broadcasting these statements, even after the microphones were cut. The sergeant at arms normally shut down cell phone camera use on the floor. That had to become, unfortunately, another part of this civil disobedience, because we thought the world needed to see and hear what was happening. Vonnie congressman jared huffman, democrat of california, thank you. David steve brown with American Century tells us whether he things commercial real estate is headed for a longterm downturn. David this is bloomberg markets. Policy,now to china where policymakers are grappling with the debt problem. A snapshot shows the growing debt pile is growing, and they are worried about risks associated with rapid deleveraging. In there is the recent revelation that Wealth Management products are investing each other and could cause a default chain reaction. Debtrant painted a dire picture earlier today. Jim china is a financial dystopia, immensely leveraged. It is very dangerous, very low quality debt. First quarter, they say gdp grew 7 . Say that it did, evidently, banking assets grew at Something Like 17 . During the first quarter, china materials about materialized about 1 trillion of new debt. We will wake up one morning and here that there has been overnight combustion in the socalled Wealth Management product there. It is really quite worrying. Yet, the world is clamoring for china to keep growing. What is the calamity you see . That then say Bloomberg News department, from may 29, write a fabulous piece on this. There are 3. 6 trillion worth of these things that are closed end funds, credit instruments, that have tripled in volume in the past three years. Method ofincipal refunding these things is to issue more of them. This is one of the great unexamined the digital calamities of the world. Goodness knows we journalists spend a lot of time analyzing things, and disneys more attention still. We we need to Pay Attention to this still. In the 1980s in latin america, we saw this, but they grew their way out of it. Is it possible for china to grow its way out of the problem . Jim yes. But i live in work on, but you must cover my answer with that fact. No, it is not possible. That is the theory, correct . Is approximately twice as big as gdp and growing twice as fast as gdp. That is not a formula for happiness. What would your prescription be for china . Jim be short. What if you are running the country . Jim capitalism and freedom. I mean, china is dedicating to suppression of free information and to the proliferation of debt. No, wrong way forward. What we need is freedom and less debt. Vonnie that was jim grant of grants Interest Rate observer. Still had, markets will be closing in new york. And Marshall Real Estate prices commercial real estate prices. Okay, ready . Whoa [ explosion ] nothing should get in the way of the things you love. Get americas fastest internet. Only from xfinity. By switching to xfinity x1. Rio Olympic Games show me gymnastics. X1 lets you search by sport, watch nbcs highlights and catch every live event on your tv with nbc sports live extra. Im getting ready. Are you . X1 will change the way you experience nbcuniversals coverage of the rio Olympic Games. Call or go online today to switch to x1. David this is a live shot of the capitol building, nephew pelosi giving her weekly news conference. The house officially in recess until after the july 4 holiday. Reportersressing after houston mcgrath staged a sit in that lasted two days, pushing for action on gun control. You can watch the full event on live go. Onnie lets check in Commodity Markets in new york as they close. Ramy i am looking at what is happening in terms of oil. I want to point out the fact oil is rising is because of what is happening with the u. S. Dollar. I want to go quickly to my bloomberg and so what is happening with the dollar spot index. What i want to show you is over the past two days, the dollar has fallen in tandem, commodities and prices have risen. If we can bring back the wti crude, that has been rising over the past two days. It is now the highest two weeks, up 2 just today. U. S. Crude production fell for 14 of the past 15 weeks as well. According to the eia also factoring into this. Oil is up 30 today. That is what is happening with nymex crude. A single look at gold. Because of the risk on environment, equities are near session highs, gold futures are down by about 0. 5 . They are heading towards session lows. This is the slowest in the past two weeks. I want to take a look at industrial metals, specifically copper. Copper is rising near session highs up by 1. 2 , rising for a sixth straight day. This is the longest rally in the past two months. Copper, with it rising, is helping material stock in particular. David Ramy Inocencio at the markets desk. Vonnie are we heading for a downturn in commercial real estate . Pimco predicts that u. S. Prices may fall as much as 5 to two titans regulations, debt insecurities, and publicly traded companies. But do our reporters share the same view odor thank you for joining us. You have done pretty well. In . E top in or almost reporter rates are up 9 , investors had a good ride. And the one push back i got was that thought rates were going to rise, and here we are in june, 0. 16 . We have had a strong environment for commercial real estate. Low demand and supply characteristics. If they continue at 1. 6 where it is, if we have 2 growth in the u. S. , they should return in 2016 and beyond. Months of the next 12 with the singledigit returns, there is an expectation. It was 6 today, so that is quite good. David where is the market heading, where are we in the cycle . Reporter we are in the midpoint of the cycle. Real estate prices have been to recovery since 2009. Supply not had that much return. Supply is less than demand in many markets in the united states. Landlords can raise rates at a higher rate than inflation, so we still have a landlords market or an owners market. That is positive. We have seen many prices over the past few years. The s p is up, it has a return of the last five years, 12 . Oil prices have done well. Many Asset Classes have done well in the low Interest Rate environment. Hours, in less than two the fed will talk about banks. Officials were saying one of the things he thinks will be a weak point is marshall loans, commercial real estate loans. Do you disagree . We not qualify as that reporter the reason they have this debt rating, there is the secure and this insecure debt market. One of the things was the mbs, there is a lot of maturing. There is a 10 year maturing, and a lot of that matured into thousand seven two 2017. Maturedrd from 2007 from 2007 2 body 17. The debt markets are wide open for highquality access, in the values of 55 or so. In terms of the mbs, if it is declining for the past few years, they may have difficulty refinancing their asset. That could be difficult. It needs to be reinvested, and the markets are pretty open for highquality real estate in the , 55 percent loans market. That could be Life Insurance companies, commercial banks, or unsecured debt. All of those markets are pricing longterm debt at 3. 5 or four ports and today 4 today. David among foreign investors, what is the reaction . Reporter it has been solid, very strong the last couple of years. This year, we have interest from asia and canada. The u. S. Dollar has been a strong currency this year against other currencies, so that has been a positive. And the relatively high yield versus the rest of the world is positive. The treasury yields 1. 6 . The japanese bond 20 basis points, german bond 10 basis points, the french 44 basis points. In a world of very low yields, the u. S. Offering 1. 6 on the 10 year treasury and a caps rates of four parsecs percent and it caps on rates of 4. 6 is good for highquality real estate. Vonnie looking at the portfolio, property growth, we have not really talked about the health of the malls or the u. S. Consumer. We know there is a problem with small shopping. Where do you see that for the rest of the year, particularly through parallel seasons in 2013 . Mall is themon largest mall holder, and have substantial standings in western europe. They are focusing on a malls, malta do 600,000 of sales. Malls that do 600,000 of sales. With their strength and assets, they attract Restaurant Concepts and build highend retailers. In new york, they have a mall at Roosevelt Field and they brought a Neiman Marcus that opens in february this year. There was was 800 900 a foot. These are highly productive laces. Online merchants. They have tesla, these other concepts coming into the a malls , that is were the shoppers are and the sales lines. There are problems in the b and c quality malls and Department Stores like macys, sears, even nordstroms had mega cells this year. Sells this year. The International Shopper is being impacted by the weakness of their own currencies. But simon specializes with this. , like inl tenants italy or online retailers or online merchants that want to have a brickandmortar presence , tesla, etc. , they are going to the a malls and having great success. Vonnie thank you for joining us. David lets check the first word news. Mark crumpton has more. U. K. Citizens are voting today in a referendum on the membership in the european union. Prime minister David Cameron was among those casting ballots. Fromlaw prevents us reporting on voting or discussion or analysis of referendum issues while the polls are open, but we will be following all of the action as those results come in. Special coverage on Bloomberg Television begins at 5 00 new york, tenneco p. M. In new york. In00 p. M. In new london. Republican revision to Susan Collins position is to keep guns out of the hands of terrorists, those on the nofly list. Ron johnson would give the Justice Department only three day window when the opportunity for a slight extension to prove there is probable cause to deny someone on such a loss best list of firearms. Democrats suspended the occupation of the house floor, which lasted more than 24 hours to demand votes on Gun Legislation in the aftermath of the orlando, Florida Shooting massacre. Republicans refused to give in until after the fourth of july recess. House weaker paul ryan had this reaction at his weekly news conference. Paul ryan i will not dwell on the decorum of the house today other than to say we are not going to allow stunts like this to stop us from carrying out the peoples business. Mark republican state similar staged a similar protest during a gop push for a vote to expand oil and gas drilling. Hillary clinton announced 40 Business Leaders endorsing her. Declared previously their support for mrs. Clinton, increasing Berkshire Hathaway and others. This also includes longtime republicans like jim taccone of at t and dan akerson of general motors. Dayal news 24 hours a powered by more than 2600 journalists and analysts in more than 120 countries. I am mark crumpton, this is bloomberg. David up next on bloomberg markets, the Obama Administration loses one of its fights and wins another. David this is bloomberg markets, i am david gura. Vonnie i am vonnie quinn. David president elect president obama wanted this immigration to be his legacy, but it was dashed. The move effectively killed the initiative for the rest of his presidency. Here to give us context is a reported outside the Supreme Court in washington dc. It is a hot afternoon. Let me ask you, this leaves the 4 million legal illegal people in limbo. Reporter not in the sense there is any meet immediate concern they will be deported. He still have the ability not to deport those people. He has said he will prioritize people who are criminals, who just got to the country. But they dont have a status that would leave them to work. They have to apply for work permits. They will not have this until we get through the election as they would happens with the vacancy and the white house. Vonnie have these people been identified in any way . Reporter they are described as a category, people that have children here legally either as permanent residents or u. S. Citizens. As a category, we do know who they are. Under the program to qualify for it, they would have to apply and give names and say who they are. Vonnie but they have not done that yet, so there is a list of potential deportees anywhere . Reporter that is correct. David since justice scalia, we have had cases where the court is deadlocked. Let us know what it looks like when that happens. Seeing 44, is there any indication on on how they fell on this issue voter reporter we get is a single piece of paper that says the lower court is affirmed by the equally divided court. They dont say who is on what side. It is pretty big because of the argument. The courts ideologically divided, we dont get any reasoning, we dont get a definitive proof on who is on what side. Vonnie we heard from the president earlier on the issue. We want to bring in megan murphy, our washington murphy our washington reporter. Megan had a chance to sit down with president obama and cohosts from bloomberg and talk about his biggest regrets for the cover story of Bloomberg Businessweek. She joins us with more. Megan, will this turn out to have been his biggest regret at this point . Reporter i think that this will be a blow. He does speak try candidly how he pictures this is not just a moral case but really an engine of Economic Growth and how it is one of the things that have made a us so globally competitive is having the steady influx of what streils drier is a erism. I dont know if it will be his biggest regret, but he did not get this to the degree he wanted, having he wishes he had gotten done. David you interviewed him after the shooting in orlando. You know he said very quickly, lets talk about the economy. He made the turn there. Taking that as a jumping off point, when you look at his legacy, how central is the economy as an achievement . Reporter it is front and center in terms of how much we have gone through, changes structurally. We need to when he took office, we were coming out of the crisis. He has a deep and broad thinker, and he does not take things in isolation. We made that turn from orlando to the economy, not him. What he thinks about with the economic legacy is not only what he has done taking the Banking System stronger, recovering the auto industry, but he does see challenges ahead. He points out the Disruptive Force of technology and automation in the economy and how we prepare workers to deal with that change and be able to thrive in that change. He sees that as fundamental to keeping us on top and competitive instead of having a workforce that cannot compete in industries and harnessing all the talents and skills we have in this country to remain at the forefront of what is a really structurally changing economy. Vonnie lets take a listen to what he said about doddfrank regulations. Processt obama banking are not as outsized as they were. , but i dont consider that a bad thing. Most americans dont either. They are still making a profit, followup that has been eliminated. That is good over the longterm for the financial sector. Vonnie it is funny because he had a reputation of being antibusiness, but if you look at the record, the accomplishments and achievements, they have been probusiness. Does he care about his reputation when it comes to being antior probusiness . Reporter i am glad you picked out that quote, because i thought it was interesting. That is something banking people have always thought art of regulations in the sector were designed to clamp down on profitability. When you really want to make the they arere is, yes, not making the outside profits they would, but the system is safer. It would not have the design of the regulation, but we are not losing too much like that they are not making what could be risky or gambling or things that put the entire Financial System at risk. I know the president does not believe he is antibusiness. He has done a lot with small business, technology, the auto industry. But he is most concerned about is leaving the economy and the labor force in position to continue to be thriving and competitive and keep the u. S. Where it is in the global economy. David we talked about business playing in outsized role with donald trump. Lets what he has to say. Sorry, i will read it. There is no successful businessman who thinks the most successful businessman is donald trump. Can you give an indication on how he is making the case for Hillary Clinton against donald trump in the general election . Reporter there is no love lost with the president or donald trump. Trumps comments are what the president believes, building a wall, the things he has said, the wake of the orlando shooting, it is done. The president will be forceful on all fronts. He will be forceful attacking the very morality of mr. Trumps positions. Will look at his economic and Business Record and see if he per trays himself as the successful business person he is. The president is forceful on this. I expect Hillary Clinton to use him as an attack dog and a very persuasive attack dog when she can. Vonnie megan murphy, washington, dc, thank you very much. You must check out the Bloomberg Businessweek story. It is a great story. David lets go to the spider report. Remy has that. Ramy im looking at materials, specifically the x lbs. It tracks the materials sector. We are at session highs up 1. 5 . For the most part going gangbusters in terms of individual equities. 25 on this are up. Red. S flat, one is on the fertilizers, painters, all higher on the day. But go to fertilizers. Mosaic is up 4. 7 . This is the highest in 10 days. Potash up 5. 5 . Cf industries also 1. 5 . The news here dictating what is happening is that india is reporting close to signing a deal with potash, and traders see that as a positive sign for rebound in fertilizer demand. Negotiations will, next week. On two minors, i wanted check on freeport mac brand, rising more than 2 . Had high closes in the past seven weeks. This is because of the copper copper raising for the sixth straight day in the rally. Of rising2. 8 off aluminum. Painters, ppg, neutral. David Moore Bloomberg markets next. David more highlights from the Global Entrepreneurship conference. Emily chang sat down with john kerry at the summit and asked if entrepreneurship is a vehicle for democracy and a close interview. Be, in termst can of communication and speed, you know, the freedom to invest, the nature of risktaking, tends to. Ant openness i think it works more effectively but it is not exclusive to that. There are ranging capitalists, enterprises going on in authoritarian governments, and countries with authoritarian governments. China is an example. One party system, authoritarian government, and is competing for a should sleep around the world. Voraciously around the world. Thet is internet policy and nature of risktaking and partnerships required and some things. There is a certain imitation in the long run. Emily Mark Zuckerberg was recently photographed with a shot of his laptop. You can see he had tape over the camera and tape over the microphone. What does that say about the state of Cyber Security in this world . Security ira Cyber Security is a challenge. If you dont know what you are saying with these apps you have, telephone can be a listening device as well as medications areas and then a camera, the camera can work different ways. The people need to be aware. We are working very hard with the normsto establish and have rules of the road with respect to cyber. We made progress with china. We are still working with the implementation, but it is a challenge. Arell in government particularly sensitized and careful. Withe john kerry speaking emily chang. David coming up in the next hour, the cofounder of strike will join us here. David it is 3 00 in new york, 8 00 in london, 3 00 a. M. In hong kong. Vonnie welcome to bloomberg markets. From bloomberg world headquarters, good afternoon, im vonnie quinn. David is where we are watching. Stocks are higher, dow is up triple digits. The s p 500 within 1. 2 of its record. Need a tesla is going to lot of batteries to be its production goals, but it is working with china to find the materials it needs. Cannot get enough . Strike will beof here to talk about the financial tech industry. Away from are moments the close of trading in the u. S. Lets go to the market desk and get the update from Ramy Inocencio. Toy stocks are raking back session highs. 1 gains for the dow and the s p 500, nasdaq up even higher. 1. 25