Election, it was the leading gains and tech stocks and the nasdaq lagging, so we have seen a flipping of the script so far. Like trump is open to persuasion . That is what both sides of the argument believe. Decidedly against it or for it, i think both sides see many ways he might be on their side depending on how you interpret his remarks. His part oft of principles that came out a little while ago. They are going to push it with mnuchin tomorrow. Scarlet it was not included in wire theyage, renewing the call now . Guest its because the house , chairman of the ways and means that paul ryan are very much supportive of border adjustment. Companies that are supportive of this like general ction general elective general electric, they see this as a way to get tax reform done. They will be satisfied until the president comes out and says theres no way we are doing this. Even if they get House Republicans to go against it before the next up happens. if you have some sort of border adjustable tax, you can bet that finance will be on the tax cuts the administration is promising. Guest it makes it revenue neutral which makes it easier to pass. Supporters maybe dont love border adjustment but say paul ryan and kevin brady, this is the only game in town. Thats why they are supportive of it. Scarlet we will be all over that and Matt Townsend will be as well. Thank you so much. While most retailers have been adamant about the border adjusted tax, our next guest bucked that trend and is in favor of it. The former walmart ceo, bill simon. Why are you in support of a border adjustment tax. The same as paul ryan has proposer would it be a modification of that . With the border adjusted it border adjustment is one and it is critical to the reestablishment of an Industrial Base for Manufacturing Base in the u. S. Without it, there is no way we will have the revitalization of the middle class jobs for the manufacturing that will come without it and that is why i have become a strong advocate. You are in the minority because the head of pbh was talking to us and is strongly opposed to the vat. It is a hidden tax. Theres not a lot of data out on yours a 20 increase goods coming in. The only alternative we have is the price on the consumer. With the consumer representing two thirds of the economy, we just dont think it is a good idea. It is a job killer. Joblet hes saying it is a killer and you expect them to say that because it is there fiduciary duty. This negative pr campaign diminishing the odds. Would you agree with that . Seen thewould and ive analysis and comments that would be reflective of that. What they are trying to to make it look worse than it would be is taking the proposed tax and laying it on to their Current Business practices, meaning they would not do anything. We know they will do something. It will respond to the new sets of laws and i like it to a puzzle piece. The puzzle pieces the government gives us today in terms of tax law and labor policy has resulted in the off shoring of manufacturing. That has been going on for 20 years and while that has been wonderful, it is building an emerging class in asia and other parts of the world, it has hollowed out other parts of the middle class because we dont have the job progression people changed that will not until we get new puzzle pieces. When we do, smart retailers like the gentleman we just heard and the ones who will talk to the treasury secretary will sit down and figure out how to put that in the best interest of their shareholders. It is a little bit of a selfserving, hysterical situation to say it is a jobs tiller. It will be a job changer and it will be challenging but good retailers and Good Business people will figure out there way through it. Julia do you have some sympathy . Shift toseeing this ecommerce, which many mainstream retailers will be meeting trump tomorrow. Its like the collision of two forces. Huge potential structural shift in addition to a they are facing. Guest it is going to be challenging and retail is in a transitional phase right now, so there is a lot to deal with, that people are not going to stop shopping. Economists have predicted the strengthening of the dollar will and i much of the impact dont have any reason to doubt that. But as i implemented, or it is years, itover several will protect some of the retailers who are not going to be quite as prepared as others. So you think the five year phasing window will give retailers a chance to adjust their Business Models . Three to five years seems reasonable. Needs to behain thought about how we do this so people have the opportunity to move their supply chain and look for alternative sources that would not impact their bottom line so much. Cannot exempt categories and a lot of retailers have talked about exempt this category or that category and in the government would be picking winners and losers. Scarlet do consumers need to be realistic in that bringing manufactures home means paying for the final product . Companies were able to outsource. Roduction off shore will customers realize there is a tradeoff . Guest prices will go up. I trust the capacity of our american industry and retailers will figure out how to continue to get the best value to customers all the way through the system. Created this strange irony. That is earned overseas is stranded there. Its not really stranded there. It is invested because they dont just leave it in a big bucket. Profit from american corporations are building the economy outside the u. S. Incidents inside the u. S. However, they can buy goods outside the u. S. And bring them in without paying a tax on it, so the way they get their money back is importing goods. Im not saying that bad. It really and given the puzzle pieces they have had to put together today. We need to change the puzzle pieces. If we dont, we should not expect any change. Taxlet if the corporate rate were cut to how would that help the walmarts and targets of the world . What would they do with that extra retailers, if you do the research, pay among the highest Corporate Tax rates in the world they do not because have the exports to go with it to offset like ge. Every company does Different Things with their free cash. Most Companies Look for a way to grow. Dividends, they may give you a shortterm boost. They wont give you the growth you need. Most wellrun companies will look for opportunities to grow and invest. Just been over 3 billion to buy jet. Com so they could become more effective in the ecommerce space. Many retailers might move money in that direction. Bill, joining us from tulsa, thank you so much. That is a great point he made that retailers pay some of the highest Corporate Tax rates. They benefit more, if you can bring tax rates down. We have more on the tax debate tomorrow. Senate Majority Leader Mitch Mcconnell will be joining bloomberg daybreak america. The news with on Mark Crumpton. The Trump Administration today accuses the Syrian Government of carrying out mass killings of housings of visitors and burning bodies outside the military prison outside damascus. We believe the regime has installed a crematorium which could dispose of detainees remains. Itthe state Department Said believes that 50 detainees a day are being hanged at that military prison. Arguments have concluded in seattle over whether to reagans a President Trumps whether to reinstate President Trumps travel ban. The ninth Circuit Court of eals the president neil, the judge from oi, had repeat easily the president s executive order was the result of those statements. The judges gave no indication of when they might move. Russian president Vladimir Putin said the main source of the worldwide cyberattacks is the u. S. Intelligence community. Speaking to reporters in beijing, putin said microsoft it straightas put in stating that u. S. Intelligence services created the means for the attack and that russia was not involved. His comments came after the president of microsoft, brad smith, blamed u. S. Intelligence agencies for stockpiling Software Codes that can be used by hackers. Eu governments are tightening their brexit negotiation positions as they prepare to talk with the u. K. That is according to the latest draft negotiation direct is obtained by bloomberg news. The eu toughened its language on a transitional arrangement. It would help companies adapt to the new status. Help with Citizens Rights and clarify issues of the courts. Global news, powered by more than 2600 journalists in over 120 countries. Im Mark Crumpton, this is bloomberg. Ahead on cyber safety. Security stocks are gaining today as governments and companies grapple with an unprecedented attack over the weekend. The latest on the global response. This is bloomberg. This is bloomberg markets. Im scarlet fu. Now to the Cyber Attacks that have swept across the globe over the weekend, others Cyber Security stocks are jumping as governments and Companies Work to contain the damage to their systems. In at least a hundred 50 countries it has been affected. Tom, do weancisco, presume that the worst is passed . There was a whole new way this morning. That,t is happening is just as the cyber attackers develop a new approach to this malware, a kill switch gets instituted. Someone finds out how to shut it down. The good news for Many Companies and institutions is that when microsoft sent the original updated patch a few months ago, they did what they were supposed to do. Microsoft sends me a message about now where and you need to malware and you need to upgrade your software. But there are always people that jack their feet. They are particularly vulnerable. People like the National Health service in the u. K. , it is tough to turn off computers. Is this a wakeup call to those companies that dont update systems when they get a critical update message. When you get that message, you update. Whether an individual or company or government, that is absolutely vital. Find a way to take your systems offline. You dont want to do things that will hurt people to hurt people receiving Critical Health care. You dont want to do something thats going to affect your operations globally, but there are still these holdouts. They have to find a way to coordinate and work those upgrades in such a way they can keep the software up to date and not affect missioncritical operations. What is interesting is the blame game you have been talking about. We have the nsa stockpiles being passed. They are keeping track of what kind of malware is out there. How can the uses for the sake of national security. Microsoft came out and said the nsa is partly to blame. The fact that they have stockpiled these it is not quite that straightforward. There are those in the Cyber Community who say Microsoft Might need to do a better job of issuing Safe Software from the getgo. Obviously, the administration signed this executive order looking into cybersecurity. The Homeland Security advisor actually talking about this issue once again. Does government enforcement need to come into play . Who is ultimately responsible if it is corporations that need to invest more . Where do you draw the line . Guest Mark Crumpton was telling us about how he recently cited with microsoft and said this is the nsas fault. The nsa is responsible for cybersecurity, taking tariffs taking care of cybersecurity for the u. S. They do have a role to play in tabs on these hacks. The idea is a need to do a better job of making sure those do not get stolen and then disseminated and published. Lots of roles to play. Thank you very much. We did not get time to talk about bitcoin. I wonder how many people bitcoin . That 300 and scarlet still ahead, the nathan join us. Had will he will offer a reality check as the world secondbiggest economy shows signs of slowing down. Julia time for the Bloomberg Fischer hassh agreed to buy pantheon for 5. 2 worthn, including debt 7. 2 billion. Its one of the largest makers of diagnostic and testing equipment. Saudi aramco has promoted eight executives ahead of what could be the worlds biggest ipo. According to an internal memo, the Company Appointed its senior vice to Senior Vice President , and to associate general counsels. For a look at what is behind the rally in crude ive spent my life planting a sizesix, nonslip shoe into that door. On this side, i want my customers to relax and enjoy themselves. But these days its phones before forks. They want wifi out here. But behind that door, i need a private connection for my business. Wifi pro from comcast business. Public wifi for your customers. Private wifi for your business. Strong and secure. Good for a door. And a network. Comcast business. Built for security. Built for business. Julia from bloomberg World Headquarters in midtown manhattan, this is bloomberg markets. Im julia chatterley. Cody markets are closing in new york. Gold higher for a third day following tepid Economic Data and north koreas Missile Launch on sunday. Higher by. 2 . Copper prices also in focus in five of the past six weeks and nearly wiping out the year to date gains. Higher by some. 6 . , hitting its highest level in two weeks after russia and saudi arabia said they favor production cuts until 2018. Toy meet on may the 25th discuss the proposal, but as you can see some optimism in the market today. 4890 the level there. Scarlet also helping oil is word that china will import more crude and natural gas from the u. S. The u. S. Has very rich oil and Gas Resources while china needs to diversify its imported crude supplies. American crude will be one of our options as the u. S. Government is listening restrictions on oil experts. Oil exports. It is important for china to expand its natural gas ratio from the current 6 to 10 or 15 in the next five to 10 years. Stayet oil prices will near current levels for the foreseeable future. Estimate the price per barrel will be around 50 u. S. Dollars. 60h possible short term, u. S. Dollars is not sustainable. The oil price will see a slow recovery in 2018. However, prices will not get , 100 u. S. Dollars. Ofia china soliciting tens ilion to dollars in Global Infrastructure deals to bolster its economy. How will the doubleedged sword fuel spending and affect the World Economy . At the peterson institute, a former u. S. Treasury Department Undersecretary for international affairs. Hes just back from china. Thank you for joining us today. Tell us what your view is as youve returned from china. I heard a number of people say everything is on hold as a return from congress. What you see while you were there . Hand, i would say the chinese authorities were quite comfortable about the nearterm outlook for growth. They are expecting the pace of growth to continue somewhere at percent. 5 they are also increasingly concerned about potential risks andinancial Security Financial regulators have taken important steps to increasingly discipline the provision of credit and Wealth Management products that have been quite significant of late. Scarlet we might have seen some of that in the latest data with investment coming in later than expected. China is capable of warding off systemic Financial Risks and maintaining growth. Will there be a tradeoff there . If so, what would it be . Is over ainstinct several year horizon, there will indeed most likely be something of a tradeoff. I think china can achieve 6. 5 or 7 growth but it will require increasing leverage in the economy. As we have seen recently. To the extent that happens and there are imbalances and challenges in the economy that continue to expand, i think there will be a day where the chinese authorities have to make a tough choice. I think i was hearing over the last week that they are prepared to accept lower than 6. 5 growth. But thats what they are saying in the abstract. It could be difficult. Saying chinaare can get 6. 5 growth. Are they trying to have a soft landing . Get the think they can 6. 5 or 7 growth, but it is going to require increasing in balances that will make the soft landing all the more difficult. My feeling is they should be flexible on the growth target and allow growth to steadily moderate. 5 n if china were growing at rate, that would be rapid, including emergingmarket economies. Julia china represents 50 of net new growth in the world. When we look at the credit import, the net new credit has gone from super expansionary to negative. When you combine those things, i see a reason to be concerned, particularly when very few people trust the gdp data that comes out of china. Had they got the calibration of policy under control right in your mind . The objective, the soft landing scenario is one where growth slows but is more dependent on demand and as they are more dependent on domestic demand, the economy is more open and that would create ongoing significant opportunities for other countries to export into that market and create chinese demand for the rest of the world. Getting all of this balancing right is difficult. Chinese authorities have a challenge ahead of us and it that thoses the case of us in the rest of the world, it in other emergingmarket economies could feel some aftershocks. Glad julie brought julia brought up the Party Congress. A lot of observers point out the chinese president hasnt done the stateregards to Enterprise Companies and he needed to consolidate his position. Now that his position is more secure, what would his reform look like in the next five years versus what economists like you would like to see . There are range of views on this issue. But my personal perspective is the Party Congress is significant. I am not expecting any significant discontinuity or shift in the pace or trajectory of chinese reforms thereafter, specifically regarding the state owned enterprises you mentioned. The president s perspective on reform is imposing hard budget constraints, making these institutions smaller, potentially laying off workers as most economists would rank. Is grafting the weak ones into the strong once and creating larger institutions that can serve china at least for a while as national champion. I hope im wrong on this and i hope after the Party Congress that we see a different orientation. My experience, i would be quite surprised. Julia how long can they continue without making the kinds of necessary reforms, particularly when you are talking about an explosion . Ealth management products is there a ticking time bomb and how long can they continue with the status quo . Specificallyies into the issues we were talking about a few minutes ago. The nature of balancing in china and the key drivers of growth. A crucial, reform is maybe the central reform that is ensure broad allocation credit throughout the economy and allow labor to flow and Productive Resources make the economy in general more marketdetermined. Issueeform is a crucial and, as i said, im not optimistic. Scarlet visiting fellow from the nathan institute. Julia i was speaking to someone who just came back from china and he was speaking about people not wanting to do anything because he believes the rules are going to change and they do not want to engage in real and monday because they dont want to be seen supporting a tactical fight. The question is what happens after congress and nothing happens that isnt engineered . Is the chinese president creating an environment that says we need to reform afterward . Scarlet there is a certain lack of urgency. Lets check on the headlines. Secretarygeneral the latest north korean Ballistic Missile test as a violation of Security Council resolutions and a threat to peace and security in the region. The terrorists he had called on north korea to return to the path of denuclearization. The Security Council has improved six increasingly tougher sanctions following Nuclear Missile tests. The United States and china are reportedly working on a new, tougher resolution. U. S. Officials will meet over plans to extend an inflight ban on laptops. The department of Homeland Security wants to include transatlantic flights. European authorities on the travel industry are concerned by the idea which would cover 400 daily flights and 65 million passengers a year. The u. S. Supreme court has dealt a supply a surprise blow to the voter identification movement. Astices refused to reinstate measure that would target blacks with what they said was an almost surgical precision. It would require voters to show a photo id and eliminate the number of early voting days. Protesters in venezuela mobilized across the capital of caracas for a national sudan. The latest in a month and a half of demonstrations against the president. Many businesses were closed today and taxi drivers suspended work in anticipation of a traffic shutdown. Opposition leaders are demanding immediate residential elections. Ofls show a majority venezuelans want the president gone. Local news 24 hours a day powered by more than 2600 journalists and analysts in over 120 countries. Im Mark Crumpton. This is bloomberg. We will talk with Fred Crawford about his companys Investment Strategy, managing a negative rate environment and competition in the insurance sector. This is bloomberg. Julia this is bloomberg markets. Im julia chatterley. Scarlet im scarlet fu. Lets get a check on some notable movers with julie hyman. Julie i want to look at some of the down movers tesla shares getting hit after one analyst who has been a longtime bowl in the stock downgraded the shares to equal weight. Competethe case will with the amazons of the world and perhaps the risks are not fully priced in at this point. Harley davidson trading lower after wedbush said and expected lift in sales may not be coming anytime soon. Those shares down 2. 5 . Sears down sharply, the ceo firing back at some of the suppliers of the company, saying they are trying to take it and it just sears, saying dire protections about the retailers future has hurt his addition with vendors. One Hong Kongbased company says it might sue sears. Exact sciences called today saying the ultimate value could be zero. Is companys sole product not appealing to customers at this point. Some of the up movers we are watching the Energy Select spider trading higher with oil prices. The cybersecurity etf getting a boost and agricultural stocks trading higher. After awinner is aig company said its naming a new ceo who has been at aig earlier in his career. Up about two thirds. Julia lets get more insight on the insurance sector. Anding us is the cfo of ve Vice President we know it is a challenging time. Japan facing negative rates but where do you see the business right now . Blessed roughly 70 to 80 of our earnings have been in japan where we have 25 million policies in force. The Interest Rate environment in japan has been challenging for two reasons. You mentioned negative rates and low rates but a relatively limited spectrum of yenbased investments to invest in. Insurancelife companies and Health Insurance companies, we rely on the bond market. What we have been doing is being very disciplined. It starts by pulling back on the sale of products aligned more heavenly with yields and that cuts flows and lightens the load on reinvesting the money. We have an gradually diversifying our portfolio, investing in u. S. Dollar assets, a tradition traditional spectrum of classes but hedged back to yen. Some Asset Classes would include some Asset Classes would include traditionals like equities in japan. Is it influence that all by that . Infrastructure debt is not entirely new to the Life Insurance space. It is a great natural asset because it is long and duration. Asset liability management. Infrastructure lending has been very popular. You may recall build america bonds, when those were made available, the Life Insurance industry was a huge participant. Seeas an industry, want to infrastructure securities come back because they are a nice match. We took it on recently because somewhat more recently expanded our Asset Classes into new areas. What kind of term are you talking about there . Ofst it differs by the type term youre talking about. But if you take u. S. Infrastructure, they will yield to an Investment Grade type bond structure and perhaps a little better depending on the duration or lack of duration in the liquidity structure. Looket if you were to out, what are the best and worst Case Scenarios about how the white house promised that they would invest . I dont dig is going to have a great impact on the way we invest. Irrespective of the administration and their economic policies, we build the portfolios to absorb whatever Economic Conditions are handed to us. We want to drive the sale through the core products, distributing our core voluntary health. X. Build on the do is back of a particular Investment Strategy or scheme. Maximize the risk adjustment portfolio and do no damage to the franchise. Thats a longrange strategy and we dont really alter that. You recently signed a deal with and xe capital. More broadly at credit spreads and say they look the tight at this moment. Isk at where we are and liquidity a concern . Is aany reasons, there concern. Liquidity is always important in terms of efficient markets and flexibility. For the Life Insurance industry, we will give on liquidity to get more yield. Where we dont want to give is on credit and credit fundamentals. The next t relationship is a middlemarket lending, whole loan type of asset strategy. We enjoy the partnership with them to build out that for folio. We are moving about 500 million into that asset class and we them because we believe in their asset team. They yield well and are in the high and of the loan Investment Grade and work well for our structure and hedging activity in japan. Julia come back and cs soon. Will have a lot more on the agenda out of washington starting at 9 a. M. Eastern. You will want to catch our interview with Senate Majority leader, mitch mcconnell. From new york, this is bloomberg. Julia this is bloomberg markets. Im julia chatterley. Scarlet im scarlet fu. Time now for the Bloomberg Business flash. Which a bank adding seven new hires to its Trading Group in the u. S. According to people with knowledge, saying some of he additions are from the u. S. The white house is considering loosening regulations. A buyout firm and Shanghai International could be in a buyout firm. That is according to people familiar with the situation. Julia the 2008 7 crime subprime mortgage crisis. This is bloomberg. Welcome to bloomberg markets. We are live from bloombergs World Headquarters in new york. Here of the top stories we are covering. Oil jumping to its highest level in two weeks after saudi arabia and Russian Energy ministers set expectations that curbs might be extended. Considering a plan to sell at its ticketing business, while still looking for a buyer for its entire company. As a publiced company 20 years ago today, shares skyrocketing 49,000 . We talk to the nasdaq Vice President of listing and where the Exchange Sees more opportunities. Lets check in on markets. A lot of folks pondering missed opportunities with that big amazon runup. We are seeing people buying particularly the nasdaq and s p 500 at records. The dow not quite making it there. , the see this push upwards impetus is relatively small. Rangep 500 daily trading is somewhere in the neighborhood of 17 or so. The 20 Day Moving Average of that trading range has been diminishing, now around 10. Of slicing theay lack of volatility. With low volatility as people will take on more risk, feel reassured the risks are not as dire. As for what is rising today, a broadbased rally, materials amongst the biggest gainers, financials also higher and bond yields. In terms of individual stocks, Johnson Johnson upgraded at jp morgan to overweight, seeing an acceleration of earnings in the second half. Cisco also in a fitting from an analyst upgrade ahead of the companys Earnings Report on wednesday. Nvidia continue to gain following its Earnings Report, its price target raised that goldman sachs. The best percentage gain in the qorvo. 0 is quite lo it is a reminder to watch those filings. They are just a snapshot of what Fund Managers held, sometimes stocks move, sometimes they dont, and in this case they did. We will continue to keep an eye on that one. ,. S. Stocks keep melting higher ignoring the latest chatter out of washington. Earlier today, the blackrock cio for fixed income discussed how trumps rhetoric on protectionism has not really come to pass. Exports, including chinese exports into the u. S. , pretty impressive. We have not seen any initiatives. Others willand continue to work on Bilateral Agreements come in and around nafta and tpp. Better tradeint of packages for the u. S. Trade has been impressive to say the least. Is the president having his cake and eating it too . He canceled tpp, but other than u. S. China trade deal that will increase trade. If we followed every piece of , and hattie translate that, it is really difficult. Lay out an art, you your endpoint and negotiate back for it. We have the ability to create better trade deals. I think the u. S. Has been free trade oriented and the rest of. He world isnt the opportunity is there. That is the trade. The data is a different story, the weaker cpi reading on friday, factory orders light, new orders in negative territory. What is your take on the recent data we have seen . And oneweek was funny way and that ppi was solid and you had a bunch of people trying breakeven inflation tips. Empire,ken today on because he gets into manufacturing, it is something we follow. Has reacted a little bit, which i think is right. Those numbers are really volatile, and we got numbers from philly and chicago that are strong. You have to look at that in int to hash new orders context new orders were softer here. You have to take it within the context. We think you will have a secondquarter gdp that will be above 2 . Soft data versus hard data, the soft data has been extraordinarily high, empire, philly, chicago, etc. My sense is those will come down, but i think the hard data is decent. Draw a comparison between and home mortgages in 20062 thousand seven, particularly the level of fraud, 1 . How bad of a probably is the auto loan subprime . When you look at the fall conditions because of the size autoem mortgage and an loan, it tends to be lower. People tend to need their car to get to work. We have reduced subprime auto because you have a dynamic today where Employment Conditions have gotten too easy, some of the conditions have been too easy. Second, used car prices have come under a lot of pressure. You have seen rental agencies reducing their leasing, the size of their fleets. Easy, conditions were too but it will not create the same stress that mortgages did. Autos . It go beyond does it tell us something about the credit cycle more broadly . Really. If you said what are the soft points and lending today and where have Lending Conditions got into easy, i would say in the subprime auto place. On new the incentives cars, that is right in that zone that has kept new car sales up. We do not see it in the commercial real estate market, certainly in and around real a retailing you have to be careful, but not seeing those stress points. The u. S. Household has the leverage dramatically, the Financial System has the leverage dramatically to a you dont see a lot of them. It is one we have taken exposure down come and you have to pay attention. My guess is new vehicle sales and car sales will continue to be soft on the backside. That was black rocks cio for global fixed income. Markets and investors will want attention to an interview tomorrow with mitch at 9 00 a. M. Eastern, discussing health care to tax reform. Julia a check on headlines with Mark Crumpton. Federal judges question of lawyer for President Trump about whether the administrations travel ban discriminates against muslims. It is the second time in a week the issue has been in court. Solicitor general and a threejudge panel of the ninth u. S. Circuit court of appeals in seattle the executive order halting travel from six majority muslim nations does not say anything about religion. He said several things approaching that, and it is detailed and various. The best one is the Southeastern Legal Foundation brief and shows that over time the president clarified that what he was talking about were in Islamic Terrorist Groups and countries that shelter or sponsor them. Trump Administration Today accused the Syrian Government of caring out mass killings of thousands of prisoners and burning the bodies at a military prison outside the capital damascus. That the believe Syrian Regime has installed a crematorium in the prison complex, which could dispose of detainees remains. The state Department Says it believes that 50 detainees at a are being hanged at that military prison. A senior u. S. Official says the l ist to retake mosu approaching its final stages. Envoyecial president ial says iragi forces are completely defeating Islamic State and one of the most difficult urban battles since world war ii. He says local iragi Officials Say they will need more funding from the u. S. And others into the International Community to rebuild territory recently retaken from the extremist. German chancellor Angela Merkel welcomed the new french president to berlin today. She greeted him with a handshake ahead of a military honors ceremony. He traveled to berlin a day after being sworn in, conjuring the two tradition the tradition of french president s making the trip to germany. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Julia coming up, another bloomberg scoop, pandora may sell ticket fly. We have the Details Behind pandoras strategy next. This is bloomberg. Scarlet this is bloomberg markets. Time for the Bloomberg Business flash. Aig has named its seventh ceo since 2005. The replaces peter hancock, saying he would leave aig due to lack of support from investors. Aig has suffered from higher than expected claims costs and seven quarters. American home optimistic demand will keep growing. Sentiment rose this month to the second highest level since 2005. A pickup in current sales are making builders upbeat about the markets prospects for the next six months. Symantec, and other cybersecurity stocks up today as the ransom where attacks entered a third day. The wave hit more than 200,000 computers in at least 150 countries. Wow. Oracle and cisco are also likely to benefit. That is your business flash update. Scarlet lets talk about pandora, still looking to sell itself, but may now have a plan b. Lucas shaw broke the story. He is in new york today. Welcome. Business it is looking to sell, ticket fly, i did not realize pandora owned it. Was this a big component in its strategy. It was one of three businesses pandora bought. Management team came to the realization that online radio is not enough, spotify is popular, apple had introduced apple music , so they bought ticket fly and a couple of other things. Tickets lie was the largest acquisition and confused investors. They did not seem like a business pandora needed to be in. Now they may sell it. The question is whether they will sell the whole company. Ticket fly is like ticketmaster . Yes. One of the founders of ticket fly founded a company that was sold to ticketmaster. The ceo at the time said it was going to be a game changer because they thought they could leverage the music business and so people tickets. You can see where theyre trying to go with this, but you have some serious competition. What else could they do if they dont do this, and will they sell it for a loss . How painful will this be . It depends on how many potential buyers there are. Business,l a solid something that has grown over the past few years. The big focus for pandora is streaming, particularly the on demand service. That is what the future of the company hinges on. It then . White sell you are making it out like it is not a bad business. Pandora needs the cash and some focus. Casht fly would get them and distract from their main business. Scarlet a lot of investors are saying to sell it off. A lot of investors are generally unhappy with management. They continue to believe it is an extraneous acquisition. Reason why. Is one the share price of the last five years, its ugly, especially if you are buying in early 2014. Ats is a company that ipod 16 a share. When we talk about how pandora is still in discussions to sell itself, what kind of sale with this be . There has been a lot of talk xm as a buyer. The pandora management and board is open to a sale at the right price, and there has been this chasm between them all along. That is why it the performance of the Premium Services so important. It can help lift the stock price and they can get a deal at a price they want. Their edgeat is relative to apple music, spotify, amazon, google also getting in on the music business. What is the differentiating factor, and explain where this comes in terms of the kkr investment. They would say their edge is 80 Million People have been using pandora for years, so they know their tastes, how to target them, and have created a product better than the existing Ondemand Services from spotify and apple music. Nottter product has historically been enough to be a differentiator, especially when the Services Offer more or less the same thing. Kkr raised 150 million for them last week, and it could be more, at least according to my sources. They had some payments they had to make to music rights holders for that, so they needed to cover that and do some marketing so more people know pandora now has is paid option. Scarlet awesome color. Julia thank you so much. Come, oiltill to jumps as saudi arabia and russia say they are in favor of extension to supply cuts. Can the rally be sustained . This is bloomberg. Scarlet this is bloomberg markets. It is time for options insight. Is the chief today Market Strategist at bullseye option. Great to see you on the day where the s p and nasdaq are both making records. What are you seeing in the options world that encourages you are discourages you from thinking that this rally will continue . Which are seeing today is all about oil. Now in terms of volatility, not much happening. Plusde those new decade lows and now around the 10. 50 even, a bit positive though the s p as at that high. Todays options are somewhat light. That is what happens on a typical day here. When it comes to oil, what are you seeing . We have had a breakdown and correlation. In correlation. Seen the markets make highs even though the Energy Markets have been press, so this could be the next catalyst. Be with theseould Energy Stocks that have been beaten, battered, and depressed. Bethey come back, that could supportive of the sector and market in general. You have seen oil have a 10 reversal. Speaking of eatin and battered, your trade today, sun power. ,his is a Solar Company that the share price has collapsed. Its firstquarter revenue was down 61 . Where does it go from here . This stock has been trading sideways between six dollars and nine dollars. It is down 50 , but positive 10 in 2017. You are seeing solar make a come back here. 20 , solar is only down looking at the sector to make a push to the upside because it has been badly beaten. 7. 50 can get back above above the midpoint, you will be looking at that august breakdown of 12, so solar has more upside. What is the trade on some power . Deep in the money call come a january call, five dollar call, days at a. 75, 250 time. Level, then that 12 this option would gain 150 , stock substitution strategy. We will see what happens. A long way to see if it plays out. Back to you guys. , amazonstill ahead 20 year stock anniversary. We will discuss the hot listings and the tech darlings of the nasdaq with the dp of listings from the nasdaq stock exchange. This is bloomberg. Word it is time for first news. Russian president Vladimir Putin said the main source of the worldwide Cyber Attacks is with the u. S. Intelligence community. Reporters in beijing, president putin said microsoft leadership has put it straight in stating that u. S. Intelligence services had created the means for the attack and said that russia was not involved. His comments came after the president of microsoft blamed u. S. Intelligence agencies for stock Filing Software code that can be used by hackers. Began as in greece fourday debate today on whether to approve a new package of spending cuts. The package would extend the number of years reits have lived under austerity. Ece have lived under austerity. German chancellor Angela Merkels party won a decisive election victory
comparemela.com © 2020. All Rights Reserved.