What'd You Miss in Markets Today? Here's What Investors Should Know (Full Show - 08/22/16)

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STOCKS ARE MIXED AS CRUDE OIL
DROPS MORE THAN 3%.
THE QUESTION IS, "WHAT'D YOU
MISS?"
SCARLET: A CLOSELY WATCHED
SPEECH THIS WEEK BY JANET
YELLEN.
JOE: JAPAN'S PRIME MINISTER
MAKES AN EPIC OLYMPIC APPEARANCE
AS SUPER MARIO.
MATT: AND WE DISCUSS WHAT YOU
MISSED IN TODAY'S $14 BILLION
DEAL MADE BY PFIZER.
SCARLET: WE BEGIN WITH OUR
MARKET MINUTE.
A MODEST MOVE IN THE MAJOR
INDEXES WHEN ALL IS SAID AND
DONE.
THE BIG STORY HAS TO BE OIL
PRICES.
OIL DECLINING FOR THE FIRST TIME
IN EIGHT DAYS, THE LONGEST
WINNING STREAK IN MONTHS, IF NOT
YEARS.
ENTERING A BULL MARKET BEFORE
GAVE WAY TO SOME PROFIT MAKING
TODAY.
SOME MODEST MOVES.
MODEST IS THE WORD OF THE
DAY AND PROBABLY THE WORD OF THE
MONTH.
MATT: I LOOKED TO MEASURE ON
STOCKS AND I SAW THAT HALF A
,ERCENT WAS THE WIDEST RANGE
THE NASDAQ AND THE DOW'S 1.5%.
TAKE A LOOK AT MY IMAP, THE MOST
BASIC FUNCTION TO USE TO SEE HOW
THE INDUSTRY MOVES ARE GOING
THROUGHOUT THE DAY.
YOU CAN SEE A TOTALLY DEFENSIVE
INVESTOR.
UTILITY THE BIGGEST GAINER, THEN
HEALTH CARE, THEN CONSUMER
STAPLES.
DOWN ANDS WERE
CONSUMER DISCRETIONARY STOCKS
WERE DOWN AGAIN AS WELL.
SO PEOPLE WERE GETTING DEFENSIVE
IN TODAY'S MARKET.
JOE: ON THE GOVERNMENT BOND
DEALT, THE INDIAN TENURE
JUMPING, SOME NERVOUSNESS IN
INDIAN MARKETS.
ANY TRANSITION OF POWER IS GOING
TO CAUSE A LITTLE AGITATION.
THAT STICK WITH
EMERGING MARKETS HERE.
SEEING THE BIGGEST DROP IN ABOUT
A MONTH.
THE RUSSIAN RUBLE LEADING THE
SLIDE.
THE UP ARROW IS THE DOLLAR
VERSUS THE RUBLE AS THE OIL
PRICES DROP FOR THE FIRST TIME
IN EIGHT DAYS.
FITCH CUT ITS OUTLOOK ON
TURKEY'S CREDIT RATING SAYING IT
INCREASES THE LEGAL RISK OF
INVESTING IN TURKEY.
JOE: GOLD AND SILVER GETTING HIT
SILVER REALLY GETTING
SLAMMED.
PERHAPS SOME OF THAT WAS THE
SELLOFF THAT WAS PERCEIVED TO BE
THE HAWKISHNESS OF THOSE
COMMENTS FROM STANLEY FISCHER.
ONE COMMODITY GETTING A BOUNCE
TODAY WAS NATURAL GAS.
ONE LAST HEATWAVE, YOU CAN SEE
RIGHT THERE A BIT OF A RALLY
TODAY.
DIVEET: LET'S TAKE A DEEP
INTO THE BLOOMBERG AND YOU CAN
FIND ALL THE CHARTS USING THE
FUNCTION AT THE BOTTOM OF YOUR
SCREEN.
WE WILL STICK WITH THE IDEA THAT
OIL PRICES HAVE GIVEN BACK FROM
THEIR RECENT GAINS.
YOU NOTICE THIS COLUMN, THIS IS
SEPTEMBER.
OIL TENDS TO DROP IN THE MONTH
OF SEPTEMBER.
FOR THE LAST FIVE YEARS THAT'S
BEEN THE CONSISTENT PATTERN.
IN 2015 CRUDE OIL DROP MORE THAN
8%.
2013, ABOUT 5%.
THESE ARE PRETTY SIZABLE LOSSES.
SO AN OMINOUS WARNING AFTER
THIS EXTRAORDINARY ABOUT.
I WANT TO TALK ABOUT THE STOCK
MARKET TODAY BECAUSE IT'S KIND
OF AN INTERESTING DAY.
IT'S REALLY JERKY.
MATT: HOW DID YOU DO THIS?
YOU SEE THESE REALLY SHARP
UPS AND DOWNS.
ON THE LEFT SIDE YOU SEE THIS IS
VOLUME DISTRIBUTION, THIS IS THE
VOLUME ANALYSIS FUNCTION.
YOU CAN SEE IT'S CONCENTRATED AT
BASICALLY HERE,
HERE, AND A LITTLE BIT HERE.
YOU GET THE POINT THERE WERE
JUST A FEW PRICES AND THEN YOU
HAVE THESE BIG GAPS WHERE THERE
IS ALMOST NO VOLUME IT ALL.
OF A JERKY, SLOW,
SUMMER DAY.
ULTIMATELY NOT MUCH CHANGE BUT
THE CHANGES THAT DID HAPPEN
HAPPENED THAT NO VOLUME AND VERY
FAST.
I HAVE A GREAT CHART THAT
I STOLE FROM SOMEONE ELSE.
WHAT IT SHOWS YOU IS COMPANY
R&D, CAPITAL
EXPENDITURES AND PROFIT MARGINS.
R&D IS THE RED COLUMN AND YOU
CAN SEE IT HAS GOTTEN BIGGER
EACH QUARTER GOING BACK TO THE
BEGINNING OF 2014.
AT THAT CAPITAL EXPENDITURES
HAVE DROPPED TO ALMOST NIL.
WE KNOW THAT CAPITAL
EXPENDITURES ARE PROBABLY
BECAUSE COMPANIES HAVE LITTLE
CONFIDENCE IN THE ECONOMIC
FUTURE, BUT THE R&D EXPENDITURE
IS GROWING.
I THOUGHT THAT WAS INTERESTING.
IT MAY HAVE SOMETHING TO DO WITH
THE TAX TREATMENT ON R&D.
IT LOOKS LIKE THEY WOULD BE
PUTTING MORE INTO THAT.
PROFIT MARGINS GOT BIGGER OVER
THE FIRST COUPLE OF YEARS IN
THIS CHART.
THEY ARE STARTING TO SHRINK A
LITTLE BIT.
A LOT OF PRESSURE ON PROFIT
STILLS, BUT THEY'RE
GROWING R&D, WHICH IS
INTERESTING.
YOU CAN MAKE YOUR OWN CHART
THAT IS THAT.
THERE HAS BEEN SOME
CONCERN OR AT LEAST PEOPLE
NOTICING THE RECENT SURGE IN THE
WITH USETWEEN LIBOR --
IS BOB FINCH.
WHEN SOMEONE TALKS ABOUT LIBOR,
WHAT COMES UP IS THAT THIS IS
ANTICIPATION BEFORE THE MONEY
MARKET REFORM KICKS IN.
BUT WHEN YOU LOOK AT THE SPREAD,
WHY ARE PEOPLE TAKING A SECOND
LOOK AT IT AND WONDERING IF THIS
COULD BE CONCERNING?
>> WHEN YOU SEE SPREADS BETWEEN
BANK ORIENTED PAPER AND TREASURY
BILLS, YOU HEARKEN BACK TO THE
2007 FINANCIAL CRISIS.
IS THERE SOME SORT OF RISK
BREWING UP THAT WE ARE NOT AWARE
OF?
AND CONCERNS THAT THAT IS WHAT
THE MARKET IS BEGINNING TO TELL
US.
IN THIS CASE IS MORE INNOCUOUS.
OCTOBER 14 THERE IS A MAJOR
REFORM GOING ON FOR MONEY MARKET
LINES.
THE INDUSTRY IS CREATING MORE
VOLATILITY IN THE NET ASSET
GAINS THATLSO SOME
SLOWDOWN REDEMPTIONS IN CHARGE
REDEMPTION FEES IN CASE THERE'S
A RUN ON THE MONEY MARKET FUNDS.
THIS IS DESIGNED TO IMPROVE
LIQUIDITY.
WHAT HAS LED TO IS A LOT OF
COMPANIES, MAJOR BROKERAGE
FIRMS, RETAIL ORIENTED, RICK
WEARING THEIR CUSTOMERS TO SHIFT
OUT OF WHAT WOULD BE CALLED A
PRIME MONEY MARKET FUND THAT
WOULD INCLUDE CDS, COMMERCIAL
PAPER, AND MOVE INSTEAD INTO
GOVERNMENT ONLY FUNDS.
THERE MAY BE A BENIGN EXPIRATION
FOR THE SHIFT, BUT WILL IT HAVE
ECONOMIC RAMIFICATIONS FOR LOANS
AND OTHER THINGS TIED TO LIBOR?
EVEN IF THERE'S A BENIGN
EXPLANATION, WILL IT FILTER
THROUGH TO THE ECONOMY IN A
NEGATIVE WAY?
>> YOU HAVE A $400 BILLION
SHIPPED FROM PRIME MONEY MARKET
FUNDS TO GOVERNMENT FUNDS.
AS A RESULT THE DEMAND FOR
T-BILLS HAS GONE UP IN THE
DEMAND FOR LIBOR-BASED PRODUCTS
HAS GONE DOWN AND THE SPREAD HAS
WIDENED ABOUT 30 BASIS POINTS.
IS THAT BECAUSE LIBOR WENT UP 30
BASIS POINTS OR T-BILLS WENT
DOWN 30 BASIS POINTS, OR IS IT
SOME COMBINATION OF THE TWO?
MY GUESS IT IS A COMMENDATION OF
THE TWO.
.AYBE LIBOR IS OVERSTATED
I CANNOT BELIEVE 10-15 BASIS
POINTS IS GOING TO HAVE A MACRO
EFFECT ANYWHERE IN THE ECONOMY.
I THINK IT IS SMALL, BUT
SOMETIMES YOU JUST READ
SIMPLISTIC MEASURES LIKE THE
WIDENING SPREAD AND SAY THERE'S
SOMETHING BAD HAPPENING OUT
THERE, THERE ARE LIQUIDITY
STRAINS ON THE ECONOMY.
I THINK THIS IS EASILY EXPLAINED
BY REFORM PROCESS.
JOE: I FIND THAT SHIP THE MOST
INTERESTING.
IS THAT BECAUSE THEY'RE GETTING
INTO GOVERNMENT FUNDS, OR IS IT
BECAUSE THEY'RE GETTING OUT OF
PRIME MONEY MARKET LINES?
THE LATTER COULD BE BECAUSE OF
CHANGES IN THE WAY THEY ARE
REGULATED, MAYBE INVESTORS HAVE
LESS TRUST IN RUN MONEY MARKET
FUNDS IN THE HAVE IN THE PAST.
>> I THINK IT IS BOTH, AND I
THINK IT'S REALLY NOT A CHOICE
BACK HER.
I BROKERAGE ACCOUNT AT A MAJOR
DISCOUNT FIRM REQUIRED ME TO
TAKE MY SWEEP ACCOUNT FOR MY
BROKERAGE ACCOUNT FROM PRIME
FUND TO A GOVERNMENT FUND.
ALL THE BIG RETAIL BROKERAGE
FUNDS ARE THE CHRIST TO DO THAT.
,HIS IS NOT A CHOICE VARIABLE
IT'S BEEN HAPPENING OVER THE
LAST COUPLE OF MONTHS.
IT'S A LOT OF MONEY TO SHIFT
FROM PRIME FUNDS TO GOVERNMENT
ONCE.
LUCKILY T-BILL ISSUANCES
CREEPING HIGHER.
I DO THINK THIS IS A REGULATORY
ISSUE, AND AGAIN IT'S NOT THAT
INDIVIDUALS ARE MAKING A
CONSCIOUS DECISION.
I RECEIVED A NOTICE SAYING YOU
HAVE NO CHOICE.
MATT: YOU CAN SEE THAT THE
INULATION WENT INTO EFFECT
DECEMBER 2015.
THERE IS A DROP IN PRIME MONEY
MARKET FUNDS THERE AND A
COINCIDING JOB IN GOVERNMENT
FUNDS.
IT'S NOT REALLY A GOOD
METRIC OR INDICATOR OF
LIQUIDITY.
WHAT WOULD YOU LOOK AT TO GET A
SENSE OF THE LIQUIDITY CRUNCH IF
YOU CANNOT USE THIS METRIC?
MARKETS OTHERTHER
THAN TREASURY BILLS TO YOU CAN
LOOK AT COMMERCIAL PAPER,
INTERNATIONAL DOLLAR MARKETS.
THE SPREAD BETWEEN LIBOR AND
COMMERCIAL PAPER RATES IS
UNCHANGED THIS YEAR.
IT'S THREE BASIS POINTS THROUGH
COMMERCIAL PAPER.
BASICALLY THE OTHER MARKETS IT
MIGHT SHOW SOME CHANGE
RELATIONSHIP TO LIBOR IN FACT
HAVE NOT DONE THAT AT ALL.
IN THAT CONTEXT, IT TELLS ME
THAT THIS IS MORE THAN ANYTHING
ELSE A BIG DEMAND FOR T-BILLS,
WHICH IS ARTIFICIALLY DEPRESSED
T-BILL RATE AND MAY PUSH UP THE
OTHER GREAT IS ALL THE PRIMARY
-- PRIME MONEY MARKET FUNDS HAVE
BEEN FORCED TO LIQUIDATE SOME
POSITIONS.
WHAT IS INTERESTING ALSO IS THAT
THE MARKET TENDS TO EQUALIZE IT
SELF.
SEEINGUAL COMPANIES
MONEY MARKET FINDS HAVING TO
DUMP THEIR LIBOR AND COMMERCIAL
PAPER ASSETS SEE THOSE RATES GO
UP LITTLE BIT.
THE COMPANIES HAVE PROBABLY BEEN
PUTTING MONEY DIRECTLY INTO THAT
PAPER BECAUSE THEY CAN GET A
BETTER YIELD ON IT.
I THINK THE MARKET IS WORKING
AND GIVEN THE $400 BILLION
SHIPPED, SPREAD WIDENING IS
ACTUALLY PRETTY SMALL.
MATT: LET ME ASK YOU ABOUT
CURRENCIES.
WHEN I HEAR YOUR NAME, I THINK
ABOUT CURRENCIES FOR SOME
REASON.
THERE ARE 94,000 SHORT CONTRACTS
OPEN WITH POUNDS.
THINK ABOUT THIS
POSITIONING RIGHT NOW AND WHAT
CAN IT MEAN FOR MOVES GOING
FORWARD?
>> IT'S POTENTIALLY A PAINFUL
POSITION.
WE'VE SEEN THE POUND PER COUPLE
OF IT IN THE LAST COUPLE OF
DAYS.
THE TRADE WEIGHTED COUNT WAS
DOWN ABOUT 7% BEFORE THE BREXIT
VOTE AND DOWN ABOUT ANOTHER 8%
AFTERWARDS.
THE TRADE WEIGHTED COUNT IS DOWN
15% THIS YEAR.
THE CURRENCY IS GETTING INTO AN
UNDERVALUED TERRITORY.
I WOULD TEND TO DISAGREE, I
THINK 130 IS THE LOW LEVEL AND
WE COULD SEE SOME SQUEEZE HIGHER
IN THE NEAR TERM.
JOE: BOB, THANK YOU VERY MUCH
FOR COMING IN.
WITH ONE OFFIZER
THE BIG M&A STORIES OF THIS
MONDAY.
MORE M&A IN THIS
SPACE OR SHOULD WE JUST ASSUME
YES AND ASK WHAT ARE THE
TARGETS?
THIS IS BLOOMBERG.
♪
MARK: A FEDERAL JUDGE IN TEXAS
HAS BLOCKED THE ORDER REQUIRING
SCHOOLS TO HAVE STUDENTS USE
BATHROOMS ALIGN WITH THEIR
GENDER OF BIRTH.
CONGRESSIONAL REPUBLICANS HAVE
ISSUED SUBPOENAS TO THREE
TECHNOLOGY COMPANIES THAT EITHER
MADE OR PROVIDED MAINTENANCE FOR
THE PRIVATE E-MAIL SERVER THAT
HILLARY CAN USE WHILE SECRETARY
OF STATE.
THE GOP HAS BEEN STEPPING UP
ATTACKS ON HER HANDLING OF
SENSITIVE GOVERNMENT INFORMATION
THAT FLOWED THROUGH THE SERVER
LOCATED IN THE BASEMENT OF HER
NEW YORK HOME.
MRS. CLINTON LEAD STOP TRUMP IN
LATEST POLL OUT OF OHIO.
SHE HAS A FOUR-POINT LEAD IN THE
LATEST MONMOUTH UNIVERSITY
SURVEY.
IT IS CONSISTENT WITH RECENT
SURVEYS SHOWING HER AHEAD BY
SINGLE DIGITS.
SARKOZY WANTS HIS FORMER
JOB BACK.
HE HAS ANNOUNCED HE IS RUNNING
FOR PRESIDENT.
HIS REPUBLICAN PARTY HOLDS
PRIMARIES IN NOVEMBER.
HE LED FRANCE FROM 2007-2012.
HE URGED THE TOUGHER STANCE
AGAINST PRESIDENT.
CURRENT PRESIDENT FRANCOIS
INLANDE HAS BEEN SINKING
POLLS.
GLOBAL NEWS 24 HOURS A DAY,
POWERED BY 2600 JOURNALISTS AND
ANALYST AND MORE THAN 120
COUNTRIES.
THIS IS BLOOMBERG.
SCARLET: PFIZER IS BUYING
MEDIVATION FOR A PRICE TAG OF
$14 BILLION.
-- WHERE CAN THE
PARIS-BASED COMPANY GO TO MOVE
ALL THAT M&A CASH?
LET'S PUT THIS INTO PERSPECTIVE
FIRST.
PFIZER IS BUYING MEDIVATION.
CANCER.ALL ABOUT
THIS HAS BEEN A HOT YEAR, GOING
BACK TO LAST YEAR IT'S BEEN A
HOT TIME TO BUY ONCOLOGY DRUGS.
THEY'RE TRYING TO DEVELOP A
BREAST CANCER DRUG AND A BLOOD
CANCER DRUG.
SO YOU HAVE CURRENT ASSETS THAT
NOW ANDW OF CASH RIGHT
SOMETHING COMING IN THE NEXT
COUPLE OF YEARS THAT HAS VALUE.
INY STARTED THE PROCESS BACK
MARCH.
THEY PLAYED IT BADLY.
I'M SURE THERE ARE A LOT OF
DIFFICULT CONVERSATIONS GOING ON
RIGHT NOW BETWEEN THEIR BANKERS
BECAUSE THEY NEVER SAW THIS
COMPANY BEING WORTH $14 BILLION.
I THINK THEY ASSUMED IT WAS LIKE
A $12 BILLION DEAL AT MOST.
THEY WERE ADVISED WAY BACK TO
BUMP THEIR BID BECAUSE THEY
STARTED OUT AT $52 AND PUSHED TO
$58 AND ENDED UP SELLING FOR
$81.
IS IT POSSIBLE THAT PFIZER
COULD END UP WITH THE WINNER'S
CURSE?
WHAT ARE PEOPLE SAYING?
BIGGER, IFS SO MUCH
THEY DO AN OK JOB IN MERGING
THIS, THAT WILL BE FINE.
ARE $212 BILLION MARKET
CAP COMPANY AND THIS IS A DEAL
THEY CAN DO EASILY.
THEY DID NOT DO THE HOUR AGAIN
DEAL WHICH WOULD HAVE SPENT A
LOT OF THEIR TIME AND ENERGY AND
MONEY, BUT THAT DEAL FELL APART
SO THEY HAVE A LOT OF MONEY TO
DO THIS DEAL.
AND 36 MONTHS THEY CAN LOOK AT
OTHER COMPANIES AS POSSIBLE
TAKEOVER CANDIDATES.
IT WOULD NOT SURPRISE ANYONE IF
PFIZER CAME IN AND ALSO BOUGHT
THAT.
JOE: I KNOW THAT YOU AND ALEX
, WHICH HAVE A POOL
COMPANIES GOING TO GO NEXT.
ARE THEY ALL CANCER DRUG
COMPANIES RIGHT THERE LINED UP
AT THE TOP OF THAT POLL?
BUTE DO NOT HAVE THAT POOL,
I MENTION THIS EARLIER, THE NAME
IS WELL KNOWN BY THE ARBITRAGE
COMMUNITY.
I THINK THE MARKET CAP IS AROUND
$15 BILLION SO THEY WOULD FETCH
MAYBE $30 BILLION.
PROBABLY OF $6 BILLION
MARKET CAP.
THAT'S ANOTHER ONE TO KEEP AN
EYE ON.
WE SHOULD ALSO KEEP THE NIGHT ON
AND OTHERS.
THEY ARE ALL LOOKING TO DO DEALS
IN THIS SIZE AND SPACE.
WHEN IT COMES TO HEALTH
CARE IT SEEMS LIKE THERE IS A
RAMP-UP IN DEAL MAKING RIGHT
NOW.
IS THIS TYPICAL TO BE SO MUCH
DEALMAKING IN THE LATE SUMMER
MONTHS?
>> MADE THE MISTAKE OF TRYING TO
SCHEDULE VACATIONS IN AUGUST
BECAUSE I THOUGHT IT WAS GOING
TO BE REALLY SLOW THIS MONTH.
BUT BETWEEN THIS DEAL AND THE
GAS DEALS, JUST IN GENERAL IT
FEELS LIKE IT'S PICKING UP.
SOME OF IT MIGHT BE THE
ELECTION, PEOPLE ARE TRYING TO
GET THINGS NINE WHEN THE HAVE A
SENSE OF WHAT THE ADMINISTRATION
LOOKS LIKE NOW AND WHAT THE
STRUGGLES ARE GOING TO BE.
INVESTORS ARE GENERALLY
REWARDING COMPANIES THAT ARE
DOING DEALS.
I THINK THE INVESTORS EXPECTED
THEY WOULD GET THIS DEAL DONE.
SO THE ENVIRONMENT IS STILL
SUPPORTIVE OF THE ACQUISITIONS.
MATT: YOU LET US PERFECTLY INTO
ASIAN BUYERS WITH U.S. AND
EUROPEAN TARGETS.
JAPANESE BUYERS ARE LOOKING FOR
U.S. COMPANIES BECAUSE OF YEN
STRENGTH.
WE KNOW THAT NOMURA IS HIRING A
DOZEN OR 20 BANKERS BECAUSE THEY
THINK IPOS ARE GOING TO PICK UP.
>> THAT'S GOING ON IN PLACES
LIKE DEUTSCHE BANK AND CREDIT
.QUEEZE, -- CREDIT SUISSE
IN GENERAL, IF YOU ARE IN CHINA
OR JAPAN, THE U.S. IS THE BEST
PLACE TO TRY AND ADD BUSINESS.
EVEN AT 1.2% GDP GROWTH IN A
EVERYONE HEREAKES
RING THEIR HANDS AND GET UPSET,
THAT STILL TREMENDOUS WHEN YOU
LOOK AT WHAT THE BASE OF OUR GDP
IS.
EVERY OTHER COMPANY WOULD LIKE
TO HAVE MORE BUSINESS IN THE
UNITED STATES.
LOOKING AT THE DEALS HERE
IN BLUE, WE HIT A RECORD LAST
YEAR AS FAR AS THE VALUE AND
NUMBER OF DEALS.
.HIS IS A QUARTERLY BREAKDOWN
ARE WE GOING TO GET TO ANOTHER
RECORD THIS YEAR?
>> I DON'T THINK SO.
ARE GOING TO SEE ASIAN OUTBOUND
DEALS INTO THE U.S. OR EUROPE.
I DON'T THINK WILL HAVE A RECORD
YEAR.
DEAL.T ANTICIPATE A
I COULD BE WRONG BUT I DON'T
EXPECT THE NEXT FOUR MONTHS TO
BE ANYTHING LIKE LAST YEAR.
EVER WONDERED HOW
RELEVANT FISCAL VERSUS MONETARY
STIMULUS WAS 20 YEARS AGO?
WE WILL SHOW YOU A SNAPSHOT OF
THAT DATA.
THIS IS BLOOMBERG.
♪
SCARLET: LET'S TAKE A DEEP TIME
INTO THE BLOOMBERG.
ARE AT THE LIMITS OF WHAT
MONETARY POLICY CAN ACHIEVE.
THE CHART GOES BACK TO 1990.
I'VE GRAPHED HOW OFTEN THE WORD
FISCAL STIMULUS SHOWS UP IN NEWS
STORIES, VERSUS THE FREQUENCY
THAT THE WORST MONETARY STIMULUS
APPEARS, THAT IS THE ORANGE
LINE.
STIMULUSY OF MONETARY
WAS RIGHT AFTER THE FINANCIAL
CRISIS FROM 2010 AND PEAKING IN
2012.
AND COMING BACK DOWN AGAIN.
IT'S GOTTEN SOME PLAY LATELY
BECAUSE MOST OF THE ARTICLES ARE
ABOUT THE LIMITATIONS OF IT.
IT'S A FASCINATING CHART
FOR MULTIPLE REASONS.
SCARLET: AND ALSO AT THE END OF
THE -- OR THE START OF THE
FINANCIAL CRISIS.
INTO THE -- WENT
WHEN INTO DORMANCY AND THEN IT
-- IT'S ONE OF THE BEST
FUNCTIONS FOR UNDERSTANDING HOW
THE FREQUENCY APPEARS.
MATT: I JUST WANT TO SHOW, THE
10 YEAR RIGHT NOW IS YIELDING
1.54 PERCENT.
I JUST HAVE A SIMPLE YIELD GRAPH
OF IT.
YOU CAN GRAB THE CURVE HERE AND
THEN LOOK AT IT OVER A WEEK AND
IT WILL SHOW YOU DOWN IN THE
SECOND PANEL THE CHANGES IN
YIELD OVER THE DIFFERENT TENURES
.
WHAT WE CAN SEE FROM THIS IS
THAT AT THE BEGINNING OF THE
SHORT END OF THE CURVE, THE
YIELD HAVE GONE UP ON THREE
MONTH, SIX MONTHS, ONE YEAR,
WHEREAS ON THE LONG END OF THE
CURVE OVER THE LAST WEEK, YIELDS
HAVE COME DOWN AND THE 30 YEAR
HAS COME DOWN 4.5 BASIS POINTS.
BASICALLY THIS SHOWS YOU THERE
IS CURVE FLATTENING GOING ON.
YOU DON'T THINK ABOUT
THAT.
IT'S JUST A COOL WAY TO
LOOK AT 10 YEAR YIELDS.
JAPAN WILL BE FINE IN
THE LONG RUN, BUT WHAT HAPPENS
IN THE INTERIM?
THIS IS BLOOMBERG.
♪
MARK: LET'S GET TO BLOOMBERG'S
FIRST WORD NEWS.
THE U.S. STATE DEPARTMENT IS
REVIEWING NEARLY 15,000
PREVIOUSLY UNDISCLOSED E-MAILS
RECOVERED FROM HILLARY CLINTON'S
PRIVATE HOME SERVER.
THE FIRST BAT SHOULD BE RELEASED
IN MID-OCTOBER.
THAT RAISES THE PROSPECT THEY
COULD BECOME PUBLIC JUST BEFORE
NOVEMBER'S PRESIDENTIAL
ELECTION.
ILLINOIS SENATOR MARK KIRK SAYS
HE WILL HOLD A HEARING IN
SEPTEMBER ON THE OBAMA
ADMINISTRATION'S DELIVERY OF
$400 MILLION IN CASH TO IRAN.
REPUBLICANS HAVE CRITICIZED THE
ADMINISTRATION SINCE IT ADMITTED
REPAYMENT OF THE MONEY WAS
CONNECTED TO A U.S. IRANIAN
PRISONER EXCHANGE.
THE ADMINISTRATION DENIES THE
MONEY WAS RANSOM.
THE TURKISH PRESIDENT IS
COMPLAINING ABOUT THE U.S. DELAY
IN NEXT ARE DINING AN ISLAMIC
CLERIC ACCUSED OF MASTERMINDING
LAST MONTH HELD MILITARY COUP.
PRESIDENT ERDOGAN SAID THE U.S.
POSITION IS OVERSHADOWING THE
COUNTRY STRATEGIC PARTNERSHIP.
HE PLANS TO DISCUSS THE
SITUATION WITH VICE PRESIDENT
BIDEN WHO IS SCHEDULED TO ARRIVE
IN TURKEY ON THURSDAY.
THE U.S. SAID IT OF SOMETHING
CRIMINAL.
RUSSIA WILL QUIT USING BASIS TO
REBELS,TTACKS ON SYRIAN
THE RUSSIANS BEGAN THE ATTACKS
LAST WEEK EARLIER TODAY IRAQ'S
DEFENSE MINISTER CRITICIZE
RUSSIA FOR ANNOUNCING IS USING
IRANIAN BASE, CALLING IT KIND OF
SHOW OFF AND UNGENTLEMANLY.
GLOBAL NEWS, 24 HOURS A DAY IN
MORE THAN 120 COUNTRIES.
THIS IS BLOOMBERG.
LET'S GET A RECAP OF
TODAY'S MARKET ACTION.
NOT A LOT GOING ON WHEN IT COMES
TO EQUITY.
WE DID SEE EQUITIES DRIFTING
AROUND, THE NASDAQ CLOSING
MARGINALLY HIGHER.
TRADERS PUSHED UP THE DOLLAR AND
PUSHED COMMODITIES DOWN.
STAN FISCHER, THE FED VICE CHAIR
BASICALLY SUGGESTED THAT ANOTHER
RATE INCREASED THIS YEAR WOULD
BE APPROPRIATE.
FALLING,10 YEAR YIELD
SO AS MATT POINTED OUT WITH OR,
WE SAW LITTLE BIT OF INCREASED
RATES ON THE SHORT END, LOWER ON
THE 10 YEAR.
OIL GIVING UP -- FALLING FOR THE
FIRST TIME IN EIGHT DAYS.
IT HAD BEEN ON A SEVEN-DAY
WINNING STREAK, THE LONGEST
SINCE 2012.
MATT: THE LONGEST STREAK IN FOUR
YEARS, PRETTY REMARKABLE.
A BIG DROP, BUT OIL, I SHOWED A
CHART EARLIER AND I WILL JUST
BRING IT UP AGAIN.
JULIE HYMAN PUT THIS TOGETHER.
IT JUST SHOWS YOU THE WILD RIDE
THAT OIL HAS HAD BACK TO 2015.
WE FILL 47% THAT YEAR THROUGH
FEBRUARY AND THEN WE WERE UP
95%.
THEN BACK INTO A BEAR MARKET AND
THEN BACK INTO A BULL MARKET ON
FRIDAY.
THERE IS A SUFFICIENT CHANCE THE
BANK OF JAPAN WILL ADD TO ITS
UNPRECEDENTED EASING AT
SEPTEMBER'S POLICY MEETING.
THE YEN WEAKENED AFTER THE BOJ
GOVERNOR MADE THAT COMMENT.
THIS IS ALL SET AGAINST THE
BACKDROP OF THE JAPANESE PRIME
MINISTER'S RECENT PLANS FOR MORE
AGGRESSIVE STIMULUS.
OUR NEXT GUEST SAID THE SECOND
ROUND WILL BE DEAD BEFORE
ARRIVAL.
JOINING US NOW IS THE CODIRECTOR
OF MACRO RESEARCH AT GLOBAL
INVESTMENT MANAGEMENT.
THANKS FOR JOINING US.
LAST NIGHT THIS WAS ONE OF THE
STARS OF THE CLOSING OLYMPIC
CEREMONIES IN RIO.
I HAVE NOT SEEN THIS YET.
HE WAS DRESSED AS SUPER MARIO,
HOLDING UP A BIG GOLD COIN.
WHAT DOES THIS MEAN, IS IT
SOMEHOW SYMBOLIZING INKS TO
CALM?
OME?YMBOLIZING THINGS TO CAL
DIFFICULT FOR BE
HIM TO FACE THE JAPANESE AFTER
ANOTHER ROUND OF MONETARY
INFLATION.
JOE: WHAT IS NEXT FOR THE BANK
OF JAPAN?
THERE WAS TALK ABOUT
REEVALUATING THE RING WERE.
WHAT DO YOU THINK THEY ARE GOING
TO TRY AND WHAT DO YOU THINK
THEY SHOULD DO INSTEAD?
>> THEY ARE AIMING AT THE WRONG
TARGET.
IF YOU THINK ABOUT THE JAPANESE
ECONOMIC PROBLEM, IT'S NOT A
PRODUCTIVITY PROBLEM.
BASICALLYROWTH IS
PRODUCTIVITY GROWTH PLUS LABOR
FORCE GROWTH.
JAPAN'S PRODUCTIVITY GROWTH HAS
BEEN ON PAR WITH UNITED STATES
FOR ABOUT 20 OR 30 YEARS.
THE ONLY THING THAT EXPLAINS THE
JAPANESE RELATIVE SHRINKAGE TO
THE REST OF THE WORLD HAS BEEN
THE LABOR FORCE.
, THIS IS I UNDERSTAND
DONE NOTHING TO ADDRESS THAT
PROBLEM.
THAT'S WHY THINK IT'S NOT GOING
TO RESOLVE ANY PROBLEMS AT ALL.
SCARLET: AT ONE TIME JAPAN WAS
DOMINANT GLOBALLY IN ECONOMICS.
HOW IS IT THAT JAPAN CAME TO
DOMINATE GLOBAL ECONOMICS IN THE
1980'S?
CONFLUENCE OFAL
DEMOGRAPHICS AND TECHNOLOGICAL
SHOCK THAT CREATED THAT MOMENT,
OR WAS IT AN ANOMALY?
THE 1980'S, IT WAS A
COMBINATION OF THINGS.
BEEN EXPORTY HAD
DRIVEN.
THE WORLD ECONOMY HAD JUST COME
OUT OF A VERY DEEP RECESSION.
JAPAN WAS ABLE TO CAPITALIZE ON
THAT OPPORTUNITY.
IF YOU LOOK AT JAPAN'S
PRODUCTIVITY GROWTH, IT WAS VERY
HIGH.
AT THE SAME TIME, THEY DO HAVE
POSITIVE LABOR FORCE WROTE.
EARLYD SAY SINCE THE
1990'S, IT HAS CHANGED.
IT'S BEEN A PAR WITH THE U.S.,
DON'T GET ME WRONG.
THE PROBLEM HERE IS THE JAPANESE
LABOR FORCE HAS STARTED TO
SHRINK.
JAPAN'S GDP, THE
U.S. HAS OUTGROWN JAPAN BY 25%
IN TERMS OF THE SIZE OF GDP
SINCE 1990.
THAT OUTGROWN HAS BEEN EXPLAINED
BY THE RISING LABOR FORCE, NOT
PRODUCTIVITY.
THE JAPANESE STANDARD LIVING HAS
BEEN INCREASING ALONG WITH
PRODUCTIVITY GREW.
FOR THE LAST 20 OR 30 YEARS, THE
STANDARD LIVING FOR THE AVERAGE
JAPANESE HAS BEEN INCREASING
ALONG WITH THAT OF THE UNITED
STATES.
IT'S JUST LESS AND LESS PEOPLE
ARE PRODUCING GOODS AND
SERVICES.
THAT'S WHY YOU HAVE A STAGNANT
ECONOMY.
IT'S NOT A SOLVABLE PROBLEM
UNLESS THE JAPANESE GOVERNMENT
IS WILLING TO ALLOW A LOT OF
IMMIGRANTS TO COME INTO THE
COUNTRY.
OTHERWISE YOU CANNOT SOLVE THAT
PROBLEM, INTO THE STORY.
JOE: DOES THE PROBLEM NEED TO BE
SOLVED?
>> I DON'T THINK SO.
PROBLEM,HINK THERE'S A
BECAUSE JAPAN IS NOT LIKE OTHER
COUNTRIES.
JAPAN IS AS PRODUCTIVE AS THE
UNITED STATES, DON'T GET ME
WRONG.
THE JAPANESE LIVING STANDARD IS
INCREASING AT THE SAME SPEED AS
THE UNITED STATES.
THERE'S NOTHING FUNDAMENTALLY
WRONG WITH THAT ECONOMY, BUT THE
ONLY PROBLEM HERE IS, JAPAN HAS
RUN A VERY RESTRICTIVE
IMMIGRATION POLICY.
THAT HAS REALLY UNDERCUT ITS
LABOR FORCE WROTE AND ALLOWED
ITS NATURAL DEMOGRAPHIC TRENDS
TO PLAY ITSELF OUT, WHERE THE
U.S. WILL ALWAYS HAVE IMMIGRANTS
, AND NEW LABOR FORCE GROWTH.
THAT IS WHAT MAKES THE
DIFFERENCE.
SCARLET: YOU MENTIONED THAT
JAPAN WOULD BECOME THE
EQUIVALENT OF A NORDIC COUNTRY,
, SOMEWHATATIVE WELL
INSULAR WITH A MORE LIMITED
IMPACT ON THE WORLD ECONOMY.
IS THAT OK WITH THE JAPANESE
GOVERNMENT?
>> IF YOU THINK ABOUT THE U.K.
HISTORY, THE U.K. USED TO
DOMINATE THE WHOLE WORLD.
AFFLUENTLL A VERY
ECONOMY BUT IT IS AN ISLAND
ECONOMY.
JAPAN USED TO DOMINATE THE WORLD
ECONOMY IN THE 1980'S.
THE SIZE OF THE JAPANESE ECONOMY
WAS WAY TOO BIG AT THE TIME.
AS THE BUBBLE COLLAPSED, THE
NATURAL PROCESS PUT JAPAN ON A
PATH OF RETURNING TO ITS NATURAL
EQUILIBRIUM.
I THINK EVENTUALLY JAPAN WILL
BECOME ANOTHER U.K. OR SLIGHTLY
BIGGER THAN THE U.K. BECAUSE
JAPAN HAS A BIGGER POPULATION.
BUT IT'S AN ISLAND ECONOMY
NONETHELESS.
I DON'T THINK THERE'S ANYTHING
WRONG WITH THAT.
CAN TAKE A LOOK AT THE
JAPANESE UNEMPLOYMENT RATE, AND
THIS IS A PROBLEM THAT EVERY
COUNTRY IN THE WORLD WOULD LOVE
TO HAVE.
IT'S AT ITS LOWEST LEVEL SINCE
1995 AT 3.1%.
IF YOU SAY THERE'S NOTHING
UNDERLYING WRONG WITH THE
JAPANESE ECONOMY THEN WHAT IS HE
PLAYING AT?
THEYPERSONALLY DON'T THINK
REALLY THINK ABOUT THEIR
ECONOMIC PROBLEMS VERY DEEPLY.
BEENUST SAY JAPAN HAS
STAGNATING FOR DECADES, BUT WAIT
A MINUTE, YOU HAVE TO REALLY
THE EAGER AND LOOK INTO
CAUSES OF WHY THE STAGNATION IS
TAKING PLACE IN THE FIRST PLACE.
THINK ABE IS ADDRESSING THIS
POPULAR -- POPULAR OBSERVATION
THAT JAPAN HAS BEEN STAGNATING
FOR YEARS WITHOUT REALLY LOOKING
AT WHAT HE IS DOING.
JAPAN IS LOWER THAN THE
U.S. IN THE MISERY INDEX.
YOU DO TALK ABOUT ACT THAT IT
GROW THEIR GDP, BY ACCEPTING
IMMIGRATION.
ARE THERE IMMIGRANTS WAITING TO
GO INTO JAPAN?
>> AT THINK IT'S VERY DIFFICULT.
JAPAN'S CULTURE IS NOT VERY
TOLERANT, NOT VERY LIKELY TO
ACCEPT A LOT OF DIFFERENT PEOPLE
.
YOU DON'T SEE A LOT OF DIFFERENT
PEOPLE IN JAPAN.
THE JAPANESE DON'T LIKE TO SEE A
.OT OF OTHER PEOPLE
THAT IS THE CULTURE AND I'LL
RESPECT THAT.
FROM AN ECONOMIC POINT OF VIEW,
THAT IS A PROBLEM TO GROW THE
SIZE OF THAT ECONOMY, EVEN
THOUGH WE ALL UNDERSTAND THAT
JAPAN HAS A VERY COMPETITIVE
EXPORT SECTOR WHEREAS THE
THATTIC SECTOR IS NOT
COMPETITIVE AT ALL.
ECONOMICS CAN ADDRESS THAT.
WHY NOT OPEN UP THE ECONOMY A
LITTLE MORE?
JAPAN IS NOT A VERY OPEN
ECONOMY.
JAPAN CAN DO SOMETHING ABOUT
THAT IN TERMS OF BOOSTING
PRODUCTIVITY AND THERE IS STILL
ROOM FOR JAPAN TO INCREASE
PRODUCTIVITY SOMEWHAT, BUT IN
TERMS OF OVERALL DYNAMICS, I
DON'T THINK THEY CAN CHANGE
, UNLESS THEY'RE
WILLING TO REALLY CHANGE THE
IMMIGRATION POLICY.
JOE: A FASCINATING PERSPECTIVE,
THANK YOU VERY MUCH.
DONALD TRUMP IS CALLING
FOR THE CLINTON FOUNDATION TO BE
SHUT DOWN IMMEDIATELY.
THIS IS BLOOMBERG.
♪
JOE: DONALD TRUMP IS CALLING FOR
THE CLINTON FOUNDATION TO SHUT
DOWN IMMEDIATELY AS QUESTIONS
ABOUT PHILANTHROPY CONTINUE TO
LAKE HILLARY CLINTON IN HER RUN
THE WHITE HOUSE.
DONALD TRUMP SAID
CLINTON HAS SPENT DECADES LINING
THEIR OWN POCKETS INSTEAD OF
TAKING CARE OF DONORS.
JUST SENT A LETTER
TO FOUNDATION MEMBERS OUTLINING
THE CHANGES THAT IF HILLARY
CLINTON IS ELECTED, AND HE SAID
HE WOULD STEP DOWN FROM THE
BOARD.
DONALD TRUMP NOT THE ONLY ONE,
YOU ALSO HAVE THE FORMER
GOVERNOR OF AND SURVEYING IS
SAYING THAT THE CLINTON
FOUNDATION SHOULD BE LIMITING
NOW IMMEDIATELY.
>> I DON'T THINK DONALD TRUMP
WRONG NECESSARILY ON THIS POINT.
THE CLINTON FOUNDATION IS A BIT
OF AN ALBATROSS FOR HILLARY
CLINTON.
I THINK SHUTTING IT DOWN WOULD
BENEFIT HER, ACTUALLY.
INSINUATIONSS OF
THAT ARE NOT UNGROUNDED THAT
-- HAVEAVE ALLOWED THE
ALLOWED THEM TO BUY ACCESS TO
THE CLINTONS THEMSELVES.
STARTED TWEETING
THE MSNBC HOST.
IS JUST GIVING THE MEDIA
SOMETHING ELSE TO VOCUS ON?
-- TO FOCUS ON?
I THOUGHT HIS NEW STAFFERS
WERE SUPPOSED TO KEEP HIM ON
MESSAGE.
JUST ONE DAY AFTER THE SHAKEUP
AND HE CANNOT LOSE HIS GRIP ON
HIS TWITTER ACCOUNT.
MATT: WE WERE TALKING LAST WEEK
ABOUT THE CLINTON TAX RETURNS.
THEY GAVE 10% TO CHARITY, WHICH
LOOKS GREAT, BUT THEN REPORT
STARTED POPPING UP THAT THE
CHARITIES THEY WERE GIVING MOST
OF THE MONEY TO WAS THEIR OWN
FOUNDATION.
HAVE YOU HEARD THOSE REPORTS?
THAT DOESN'T REALLY SOUND RIGHT.
>> THINK IT'S KIND OF AN UNFAIR
CHARACTERIZATION.
DONORS MAY USE
THE FOUNDATION TO GET TO THE
CLINTONS, BUT IT'S NOT LIKE THE
FOUNDATION ONLY BENEFITS THE
CLINTONS.
IT DOESN'T REALLY BENEFIT THE
CLINTONS AT ALL.
IT GIVES ALL THIS MONEY TO
ACTUAL PROGRAMS AND DOES A LOT
OF GOOD WORK IN AFRICA, FOR
EXAMPLE.
IT'S NOT SOME SORT OF SLUSH FUND
FOR BILL AND HILLARY CLINTON.
IF THEY GIVE MONEY TO THE
FOUNDATION, THAT MONEY IS
PRESUMABLY GOING TO GOOD CAUSES.
YOU CAN LOOK AT THE FOUNDATION'S
TAX RETURNS AND SEE WHERE IT
GOES.
MATT: THAT'S AN INTERESTING
POINT, BECAUSE WE'RE SEEING
WEALTHY PEOPLE GIVE MORE MONEY
TO DOWN DACIANS.
THE ZUCKERBERG'S ARE GOING TO
GIVE 99% OF THEIR WELL TO THE
FOUNDATION.
PEOPLE SEEM TO ACCUSE THE
CLINTONS OF SOMEHOW HAVING
CONTROL OF THIS MONEY AND
BENEFITING FROM CONTROL OF MONEY
IN THAT FOUNDATION.
YOU'RE NOT CONCERNED THAT THEY
WOULD BENEFIT FROM THE MONEY IN
THE FOUNDATION.
>> THEY MAKE PLENTY OF MONEY ON
SPEAKING FEES.
A SALARY BYET PAID
THE FOUNDATION.
THE PROBLEM WITH FOUNDATION IS
THAT DONORS CAN USE IT AS ACCESS
TO THE CLINTONS.
THE PROBLEM IS NOT THAT THE
FOUNDATION IS DOING BAD THINGS
ARE SOMEHOW SECRETLY FUNNELING
MONEY BACK TO THE CLINTON
FAMILY.
WHAT EXTENT IS
HILLARY CLINTON EVEN INVOLVED IN
THE FOUNDATION?
THERE ARE E-MAILS FROM THE
STATE DEPARTMENT THAT SHOW
PEOPLE AT THE FOUNDATION TRYING
TO GET ACCESS ON BEHALF OF
DONORS TO STATE DEPARTMENT
OFFICIALS.
FROM THOSELEAR
E-MAILS THAT HILLARY CLINTON
EVER REALLY GOT INVOLVED WITH
THAT.
AT LEAST IN ONE OF THOSE
RECALL, ONEAT I CAN
OF HILLARY CLINTON STABBERS
ACTUALLY SAID NO TO A REQUEST
FROM THE FOUNDATION.
THE FOUNDATION MADE LOTS OF ASKS
BUT I DON'T THINK THEY ALWAYS
GOT YES FOR AN ANSWER.
MATT: THANK YOU VERY MUCH.
ISRLET: VIACOM SECOND EGG
VOTING SHAREHOLDER SPEAKS ON WHY
HE'S GOING TO GIVE THE INTERIM
CEO A CHANCE.
THIS IS BLOOMBERG.
♪
SCARLET: DECIDING HOW TO REBOOT
PARAMOUNT PICTURES WILL BE THE
CEOT TASK AWAITING NEW
DULY.
-- DOOLEY.
MARIO BAILEY SAYS HE'S WILLING
TO GIVE TOM DOOLEY A CHANCE.
DIRECTORS,OT 50 NEW
IT'S NOT COSTING MY CLIENTS ANY
INCREMENTAL MONEY BECAUSE HE'S
GOT A CONTRACT IN PLACE.
HE'S GOT A PARACHUTE AND HE HAS
UNTIL THE END OF THE FISCAL
YEAR.
WHY WOULD ANYBODY IN THEIR RIGHT
MIND WANT TO CHANGE THE CEO,
CFO, AND COO ALL AT ONCE WHEN
YOU DON'T HAVE TO?
SCARLET: IF YOU READ BETWEEN THE
LINES, HE HAS UNTIL SEPTEMBER 30
AND THE END OF THE FISCAL YEAR.
BUT WHAT TIMEFRAME DOES HE
REALLY HAVE TO GET SOMETHING
DONE?
THAT HED SAID EARLIER
WANTED TO LEAVE SIX OR EIGHT
MONTHS AGO AND THAT WAS A GOOD
TIME TO ROLL SOMETHING OUT OF
THE HAT.
-- THATY THING HE SAID
WAS AN AWFUL MOVIE FROM
PARAMOUNT,.
IT,ORGAN FREEMAN STARS IN
BEN HUR.
THAT'S A GOOD METAPHOR FOR WHAT
IS WRONG AT VIACOM RIGHT NOW AND
WHAT NEEDS TO BE DONE.
TO WHAT EXTENT WAS THE
UNHAPPY WITH HOW MY WAS BEING
MANAGED, EVEN BEFORE THIS CHANGE
WITH SUMNER REDSTONE?
BETTY: REMEMBER THAT FOR SO LONG
IT WAS REDSTONE AND GABELLI
TOGETHER.
THIS WAS A MAN WE THOUGHT WOULD
BE MAKING SOME FINAL DECISIONS
FOR SUMNER REDSTONE," -- HOW
QUICKLY HE HAS FALLEN FROM
GRACE.
MARIO HAS SEEN THE SHARES OF
THIS COMPANY UNDERPERFORMS
SIGNIFICANTLY.
HE SAID THAT SHERRY REDSTONE WAS
WELLY AND IN HER MOVES AND
LOOK MORE TO THE FUTURE NOW, SO
WHAT IS GOING TO HAPPEN WITH
VIACOM?
WILL IT STAY AS A STANDALONE
COMPANY OR MIGHT IT COME BACK
TOGETHER WITH CBS?
SAIDT YOU TO HEAR WHAT HE
ABOUT WHO MIGHT GET THE JOB DONE
IF DOOLEY CANNOT.
>> LET'S ASSUME YOU COMBINE CBS
WITH VIACOM.
NUMBER, YOU TALK ABOUT
A COMPANY IN THREE YEARS WITH
$20 BILLION.OF
YOU BASICALLY HAVE ONE OWNER
THAT CONTROLS BOTH SO THERE IS
NO TAKEOVER PREMIUM NECESSARY.
BETTY: LES MOONVES IS ONE OF THE
HIGHEST A CEO'S.
>> BUT THERE'S NO REASON TO PUT
A CEILING ON IT.
MAYBE GIVE HIM IN A $50 MILLION
A YEAR BECAUSE IT IS EXTRA WORK,
YOU HAVE TO THEN RUN BOTH
COMPANIES.
MOREULD HAVE TO BE IN
CITIES AND MORE PRIVATE PLANES,
MORE SPEECHES.
BUT I DON'T WANT TO PUT A
CEILING ON IT.
BETTY: CLEARLY IF THERE WAS ANY
KIND OF VISUAL YOU COULD HAVE ON
WHO HAS DONE THE BEST JOB, I
MEAN LOOK AT THE STOCK PRICE OF
CBS AND VIACOM.
PERHAPSWHY PEOPLE SAY
LES MOONVES CAN NOW MAKE HIS
MOVE AND COMBINED THE TWO
COMPANIES.
MATT: I'M JUST LOOKING AT PAY
GO, HE'S THE 25TH HIGHEST PAID
CEO.
MAYBE 96 ME IN DOLLARS AT THIS
HAPPENS, BUT NO CEILING.
BETTY, THANK YOU SO MUCH.
YOU CAN CATCH HER SHOW AT 7:00
P.M. NEW YORK TIME.
YOU CAN ALSO WATCH IT ON THE
BLOOMBERG.
SCARLET: THIS IS BLOOMBERG.
♪
JOE: DON'T MISS THIS, EUROZONE
PMI AND CONSUMER CONFIDENCE ALL
OUT AT 3:00 A.M. TOMORROW.
AND BEST BUY EARNINGS
COMING OUT AT 7:00 A.M..
DON'T MISS THAT.
SCARLET: AND IT TICK -- 10:00
A.M., US HOME SALES, WERE
LOOKING AT A DROP OF 2% FOR THE
MONTH OF JULY AFTER 3.5% GAIN IN
THE MONTH OF JUNE.
THAT DOES IT FOR "WHAT'D YOU
MISS?"
THANKS FOR WATCHING.
THIS IS BLOOMBERG.
♪
BELIEVE WE SAID YOU NEED AN
ADULT IN THE ROOM.
IN CHARGE OFBOY IS
DONALD TRUMP'S CAMPAIGN.
-- 12 YEAR OLD OIL.
-- 12 YEAR OLD BOY.
TVHAVE A HEAVY DOSE
TONIGHT.
FIRST GOING TO TALK ABOUT THE
CLINTON WORLD, DEALING WITH THE
UNCERTAINTY OF 15,000 E-MAILS
WHILEI UNCOVERED
INVESTIGATING HER E-MAIL SERVER.
IT'S UNCLEAR WHAT IS IN THOSE
DOCUMENTS.
A CONSERVATIVE GROUP HAS SUED
TODAY.
ALSO IN LIMBO, BILL CLINTON'S
POSITION ON THE BOARD OF HIS
POSITION.
CENTRALSE STORIES ARE
TO THE NEWLY DISCIPLINED DONALD
TRUMP CAMPAIGN THAT IS TRYING TO
REFOCUS ON HILLARY CLINTON'S
PRESSURE POINTS.
THE REPUBLICAN NOMINEE CALLED
FOR THE COMPLETE ABOLISHMENT OF
THE CLINTON FOUNDATION.
IT DOWN ANDLD SHUT
GIVE THE MONEY BACK TO A LOT OF
NOTTRIES THAT THEY SHOULD
BE TAKING MONEY FROM, COUNTRIES
THAT INFLUENCED HER TOTALLY, AND
ALSO COUNTRIES THAT DISCRIMINATE
AGAINST WOMEN AND GAYS AND
EVERYBODY ELSE.
THAT MONEY SHOULD BE GIVEN BACK.
THEY SHOULD NOT TAKE THAT MONEY.
AND IT IS PAY FOR PLAY, IF YOU
LOOK AT IT.
>> BESIDES THE CLINTON
FOUNDATION AND HILLARY CLINTON
E-MAILS, SHE'S BEEN FACING
HER CAMPAIGNINY OF
MANAGER.
IT'S BEEN MORE THAN
260 DAYS AND COUNTING SINCE
HILLARY CLINTON HELD A PRESS
CONFERENCE, AND BREAKING
CAMPAIGN DECORUM, SHE HAS NOT
ALLOW REPORTERS TO BE INSIDE HER
CAMPAIGN FUNDRAISERS.
SO THERE ARE SOME TRANSPARENCY
THINGS GOING ON THERE.
I'VE BEEN ON VACATION FOR TWO
WEEKS, SO PLEASE BE GENTLE WITH
ME TODAY.
THE QUESTION I HAVE FOR YOU IS,
THE CLINTON CAMPAIGN TODAY IS ON
DEFENSE ON A BUNCH OF DIFFERENT
FRONTS.
>> LET'S JUST BREAK IT DOWN ONE
BY ONE.
NOT HAVING A PRESS CONFERENCE
MATTERS NOT AT ALL TO ANYBODY
OTHER THAN THE MEDIA.
I'M ALL FOR TRANSPARENCY.
HILLARY CLINTON SHOULD HAVE MORE
PRESS CONFERENCES AS A CAMPAIGN
, BUT I DON'T THINK IT
MAKES A DIFFERENCE.
WE KNOW THERE ARE A LOT OF
EDITORS WHO DO NOTHING BUT ARE
LISTED ON MASTHEAD ANYWAY.
BEING AN ASSISTANT EDITOR OF
THIS MUSLIM JOURNAL, HER OUT --
MOTHER IS THE EDITOR IN CHIEF.
THIS MAGAZINE SAID THINGS THAT
WERE IN OPPOSITION TO HILLARY
CLINTON AND A LOT OF THE VALUES
THAT DEMOCRATIC VOTERS SHARE, A
CAN VOTERSRI
SHARE.
THIS IS SOMETHING THAT HAS BEEN
TEED UP FOR YEARS.
THE FACT THAT THE CLINTON
CAMPAIGN IS TAKING THOSE FOREIGN
DONATIONS SEEMS HIGHLY
QUESTIONABLE AS OF THIS
STRATEGY.
HILLARY CLINTON
SHOULD HAVE PRESS CONFERENCES.
DONALD TRUMP
SHOULD RELEASE HIS TAXES.
THELIEVE -- I CALLED
MANAGING EDITOR OF BLOOMBERG
POLITICS AND I MANAGED NOTHING
AND ADDED NO ONE AND THERE IS
THAT.
I DO NOT THINK MANY VOTERS CARE.
THE CLINTON FOUNDATION IS A HUGE
PROBLEM BECAUSE IN OUR LAST POLL
WE HAD 53% OF PEOPLE THINK THAT
THE FACT IT ACCEPTS FOREIGN
DONATIONS IS PROBLEMATIC.
IT GETS INTO THE AREAS THAT I
CARE ABOUT WHICH IS ACTUALLY
PERSUADABLE VOTERS.
BEFORE NOT ALREADY COMMITTED TO
DONALD TRUMP OR HILLARY CLINTON
INTERESTING SUBSET,
NOT DECIDING BETWEEN CLINTON AND
TRUMP.
BUT DECIDING WHETHER THEY WILL
WILL THE LIVER FOR HILLARY
CLINTON AS THEY WOULD FOR A
DEMOCRAT OR FOR DONALD TRUMP.
I THINK THERE ARE A LOT OF
DONALD ESTIMATE HER TO HER
UNSETTLED BY THE CLINTON
FOUNDATION AND THEY HAVE NOT
CLEAN THIS UP WITH A HAVE
HANDLED IT TODAY IN THE FACT
THAT THEY ARE SCRAMBLING SUGGEST
THE RECOGNIZED PHONE ABILITY.
TALK WE DID NOT GET TO
ABOUT THE 15,000 E-MAILS.
CAMPAIGN FUND-RAISING TANTAMOUNT
AND IT WAS AN IMPRESSIVE HAUL
FOR DONALD J. TRUMP,
BILLIONAIRE.
THEY SPENT 18 NINE DOLLARS AND
HAS $38 MILLION IN THE BANK AND
LOAN HIS CAMPAIGN $2 MILLION
THAT INSTEAD OF INVESTING INTO
THE TV AD WAR AND OPERATIONAL
GROUND GAME MOST OF TRUMP'S
SPENDING WENT TO WAR TO FIRM
THAT HANDLES DIGITAL ADS AS WELL
AS MERCHANDISE, TRAVEL, AND
REIMBURSING TRAVEL ON COMPANIES
FOR CAMPAIGN EXPENSES.
SHE SPENT 36 NINE DOLLARS IT
HAS 58 MILLION ON HAND.
HILLARY CLINTON'S CAMPAIGN HAS
RESERVED A MILLION DOLLARS WORTH
OF TELEVISION AIR TIME IN
BATTLEGROUND STATES WHICH WILL
INCLUDE SPOTS LIKE ONE OF THE
CAMPAIGN RELEASED TODAY WHICH IS
HIS DONALD TRUMP'S OWN WORDS
AGAINST HIMSELF.
OF CRISIS, AMERICA
DEPENDS ON STEADY LEADERSHIP.
>> YOU CAN TELL THEM TO GO
[BEEP] THEMSELVES.
>> ALL IT WOULD TAKE IS ONE
WRONG MOVE.
>> I WOULD BOTTOM -- BOMB THE
[BEEP] OUT OF THEM.
MARK: THE CAMPAIGN WHICH LOOKS
LIKE AN ACTUAL CAMPAIGN IN TERMS
OF ITS FINANCES, THERE ARE SOME
EXCEPTIONS.
AS WE HEAD INTO THE TRADITIONAL
START OF THE GENERAL ELECTION
WHERE DO THESE CAMPAIGNS STAND
RELATIVE TO EACH OTHER?
HOW MUCH WEIGHT DO THEY PULL?
DONALD TRUMP NEEDS TO RUN ADS.
SPENDING YOUR MONEY ON PLANES
AND HAD DOES NOT WHEN YOU THE
PRESIDENCY.
THERE IS AN ARTICLE THAT TALKS
ABOUT ADSENSE SPENDING AND THAT
IS WHERE YOU SEE A DRAMATIC
DIFFERENCE.
BASICALLYTERS SAID
THAT TRUMP IS RUNNING A
PRE-CITIZENS UNITED CAMPAIGN.
HILLARY IS RUNNING A
POST-CITIZENS UNITED CAMPAIGN.
PAC,G THE GREAT AMERICA
THAT IS A MAJOR DIFFERENCE.
HAS $49 CASH ON
HAND TODAY.
MILLION PLEDGE TO
THAT.
>> I DO NOT THINK ANYONE IN THE
WORLD WOULD US AGREE.
OPERATIONS,OUND
TARGETING OPERATIONS, THEY ARE
USING DATA IN A SOPHISTICATED,
MODERN WAY.
ALL THAT STUFF IS TRUE.
IT CONTINUES TO BE SURPRISING TO
ME ALTHOUGH IT IS UNQUESTIONABLY
TRUE THAT CLINTON HAS
ESTABLISHED A NEW -- A LEAD
NATIONALLY THAT TRUMP IS IN A
LOT OF PLACES WITHIN STRIKING
AND HE IS RAISING MONEY
TO PUT HIM IN A POSITION TO
CLOSE THAT GAP.
TO CLOSE THAT CAP WILL REQUIRE
ACTUALLY DOING MORE.
THE HATS ARE SPECIAL.
WHEN WE COME BACK I DO NOT OWN
ONE.
ALEX: COULD YOU SEND HIM A HAT?
>> WE WILL HAVE THE TBD
IMMIGRATION PLAN NEXT.
♪