tv Bloomberg Markets Americas Bloomberg July 19, 2017 12:00pm-1:00pm EDT
from bloomberg world headquarters in new york, here are the top stories on the bloomberg and around the world that we are following. president donald trump invites the gop senators to lunch at the white house. we will bring you the latest details on the republican effort to advance and obamacare appeal. scripps network has not won, but two major suitors. at discovery and viacom are both targeting the u.s. cable network owner. will we see a deal and with who? trade talks between the u.s. and china got off to a rocky start as the americans canceled their closing news conference. we will discuss with gary locke, former u.s. ambassador to china. we are halfway through the trading dale. abigail doolittle joins us with the latest on the rally we are seeing. abigail: we do have a rally. we have the nasdaq amazingly on pace for the ninth day higher in a row, the longest streak since
2015. a pretty impressive considering not that long ago we were talking about a tech pullback. now we have the nasdaq at new record highs similar to the s&p 500. for a second day in a row, the dow up the least about 1/10 of 1%. that also means the dow is not putting in a record high. .his is a one-year chart in white we have the nasdaq. in purple we have the s&p 500 and in pink we have the dow. the blue lines represent all the times we had simultaneous record highs for these three major averages. it's pretty remarkable over the last three years have had tons of simultaneous record highs. right now, the dow is. man out. we don't have a blue line today. let's take a look at what is dragging on the dow the most. ibm drags sharply. 4% drop4 -- almost after they missed on sales estimates. they beat eps, but jeffries
saying it is the deja vu quarter and the quality of the earnings is very poor, similar to in the past masking headwinds. it was weakness in the cloud where the disappointment was. let's turn to the potential media deal julia was talking about, scripps network and the owner of hgtv, the travel network, and others of 14% on pace or its best today since 2008. the news -- as it is being said there are two potential suitors that could buy scripps networks. they have had separate meetings with discovery and viacom, all three are rallying and paul sweeney says discovery and scripps met back in 2015 at the scripps family rejected a bid. this time around, shares are higher and it could be attractive from that standpoint. we have the core cutting from the cable stations. perhaps it will be more interesting this time around. these companies are helping to explain why we have the nasdaq outperforming both the dow and the s&p 500.
finally, another stock that is a heavier weighting to the nasdaq, --v-- vertech soaring today as the data around the company's combined cystic fibrosis treatments have surpassed street estimates. has downgraded shares to a neutral saying now the company has to contend with valuations. nonetheless, these chairs are having a good run so far this year. julie: that downgrade not slowing it down and we will talk more media later in the show with alex sherman. republican senators are getting ready to leave capitol hill en route to the white house for a lunch with president trump. let's get the latest from our chief washington correspondent, on capitolli and hill where the members of congress are set to board buses
to head to the white house. we see some of those buses behind you right there. what is -- from the senators' perspective, what is the goal of this lunch? there are a variety of opinions about what they want to do with this bill and the whole point of this meeting was president trump has been frustrated and tweeting and expressing his frustrations with the fact the republican-led senate has not been able to agree on a health care bill. the second rendition of that bill released by senator mcconnell last thursday died a couple of days ago when jerry moran and mike lee came out and said they could not support it. that's number three and four and they can only lose three senators. i think the president wants to get them all in a room and reiterate how much he would like them to pass it and how it is a promise he believes they have to .eep we have a couple of conservative amendments that were not enough
to win over rand paul and mike lee, two other conservative senators and you have a number of moderate republican senators not happy with the severity of the cuts and who were alienated further by the cruz amendment so there is a wide gulf to bridge. julie: it seems like there is not a lot of optimism that it is going to be bridged, that there is going to be even an outright repeal at this point. as sahil mentioned, the president has been tweeting. do you have any sense from the white house what the tone of the lunch will be? kevin: the president has reserved his twitter the for theg -- lambasting media. in particular, i think someone senatorator more -- shelley moore is going to be facing pressure behind the
scenes for coming out in her motion to proceed. ability toy leader's to come two-year delay up with an alternative. i spoke with treasury department officials who were telling me work is already underway to continue onward with revamping the tax code with reform on tax really, the groundwork and the foundation of this is what is going on in the budget committee which of the house of representatives has a markup today. they need a political win on policy and right now, they are without one. i think today, from what i am gathering at this meeting of the white house scheduled later this afternoon, republican senator's are going to be reminded of that. julie: we will keep you posted on any headlines that come out of that a meeting. bloomberg's kevin cirilli and sahil kapur. updatesbring you any
out of that meeting or the markup kevin mentioned. what is wall street saying in the aftermath of the health bill collapse? our next guest says there is limited repercussion for the economy, but it does have implications for the tax agenda. joining us is stephen gallagher. it's great to see you. thanks for coming in. all of this attention on washington. how important is it now for this revamp of the tax code to get done?> stephen: the tax code is huge. now that we passed through the health care, our focus is shifting to taxes. i think we need tax cuts to keep the economy going and the financial markets moving bullishly. we are seeing mixed performance elsewhere. i think our hopes of getting a full reform of the tax code -- julie: as a result of health care. stephen: it's not because health care failed directly this
failed, the inability to agree on controversial items makes it difficult to pay for the tax cuts. all these things are incredible controversial items. there is no republican unity, so the ability to have these revenue raisers to pay for tax cuts is getting dimmer and dimmer. that doesn't stop tax cuts. we could still get a tax cut with an expiration date at some point down the future. we will worry about fiscal cliff when the other side comes across. tax cuts and be very helpful for the short-term economy, the short-term equity markets and i think that is why you see the equity market still looking fairly positive. julie: at the same time, traditionally, historically, it is gridlock that has been best for the equity markets. at least that is the conventional wisdom. it seems like stocks are
rallying not because there are hopes of being -- but in spite of that. even if nothing gets done, can things continue to rally? stephen: that was true for a long time, gridlock. i think we still need tax cuts to keep the equity market in the condition it is in. to me, gridlock -- we are coming to the point where gridlock is no longer beneficial. we have an aging population. we have health care costs that are exploding, not because of obamacare, but because the population is getting older. we have had slow growth for so long in the u.s. we have infrastructure that is crumbling. we have a defense sector that hasn't had any significant reinvestment. we've got korea, we have russia, we have problems in the world. ir inability to do anything think is increasingly problematic. i don't think gridlock -- that was great in the 1980's, 1990's, maybe even earlier in this
century. no longer. julie: you sound like jamie dimon the other day and his commentary. i want to kick a look at the bloomberg because stocks haven't really been feeling the pain, but the dollar has served as more of a risk paschi. this is the relative risk -- strength index. we are seeing the dollar dropping by this measure to its lowest level since 2012, the thecity of the decline is most since that point. is this pre-staging what we might see? what is the action the dollar tells you? stephen: i love the word pre-staging. the dollar has a longer-term focus. current profit numbers look good. that is the current number. it is giving more fuel to a good run. the dollar is looking at this as we see a washington that can no longer function in a global environment. whether it is other agreements
on russia, the g20 debacle in hamburg the last couple of weeks , we are seeing the president -- the presence in the prominence of the u.s. shrank. meanwhile, europe is growing, alliance iserman growing. the european central bank is getting ready to raise rates or taper first before raising. they are showing a change. europe looks better right now -- we areong-term seeing that reflected in the currency market. julie: equity wise the you find europe more attractive than the u.s.? stephen: i do. i think the u.s. may be ahead and more mature on that, so europe given what it is going through now is probably the place to be on a relative basis. julie: stephen gallagher, thank you so much. --is the head of viewers head of u.s. research. we have been monitoring this pending lunch between senate republicans and the white house.
we are seeing a live shot of the ares that the gop senators set to board any moment for their lunch with president trump. that lunch is scheduled for 12:30. we will give you any headlines that come out of it. mark: it turns out the president had a second meeting with russian leader vladimir putin at last week's g20 summit. the white house says they had a previously undisclosed conversation during a dinner for global leaders and their spouses. the meeting lasted an hour and the only other person president -- present was president putin's translator. >> never have i seen two major countries with a constellation of national interest that are as a dissonant while the two leaders seem to be doing everything possible to make nice and be close to each other. that is what people don't
understand. mark: president trump was criticizing media reports of the second meeting saying he come at once again, was the victim of fake news. there is a reportedly trump administration is easing off its original plan for a big cut in the corporate tax rate. according to the website, politico, the administration is discussing cutting the 35% tax 20%-25%.5% -- originally he saw a 15% tax rate for businesses. in france, it's the first major test of president emmanuel macron's governing style. the head of the french military has quit in a dispute over defense spending. he openly criticized proposed cutbacks and president macron ck saying "i shot ba am your chief." the prime minister of turkey has or scrapped 11 top ministers. the finance minister is the only high-level cabinet official to keep his position.
the announcement came months after president erdogan regained the leadership of turkey's ruling party. global news 24 hours a day, powered by more 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. julie: coming up, we dig into morgan stanley earnings and tell you why the firm's bond traders goldman.ng against a new york, this is bloomberg. ♪ a new york, this is bloomberg.
they posted more fixed income revenue than goldman sachs. joining us for a deeper look at morgan stanley's earnings report is laura keller. not just a relief for morgan stanley, but for beleaguered bank investors that haven't had much to cheer about over the past few days with the earnings report. how did morgan stanley managed to do better than goldman yet again? laura: looking better picture -- bigger picture, you have morgan stanley always battling goldman income,d in fixed again, you have goldman sachs reporting yesterday 40% down. we have morgan stanley, who was really the best in the group, still down, but 4% only. one of the things we were highlighting in the tories we were writing is the commodities sector. -- stories we were writing is the commodities sector. goldman sachs in exactly say we had a terrible loss in, -- in
commodities. julie: didn't they say it was the worst quarter ever for commodities? loss, not good. one of the things morgan stanley talked about is they got rates that were not good for them, but fx was something that often -- offset that. julie: did we hear anything about the outlook whether it is trading or anything else because volatility was really what hurt last quarter and volatility hasn't picked up? laura: james gorman was talking much about predictions of the future, but he was asked by one of the analyst's, will you take up your revenue goal now that he declinedong -- to do that. they are still at $1 billion each quarter. julie: perhaps still a little bit of caution. we also got news today about morgan's emily -- morgan stanley's location. it is going to pick frankfurt as the e.u. trading hub.
what can we take away from that in terms of what some of the other banks might do, perhaps? laura: some of the other banks may choose langford. when i talk to different bankers, with a talk about his frankfurt, paris, -- talk about is frankfurt, paris, luxenberg. a lot of these banks already have a banking license in dublin. when you have these four different areas and frankfurt, i been, theys always don't have good schools for my kids, not as much to do, the nightlife is and is great, which is something people think about when you are moving wholesale these entire units. if you have somebody like morgan stanley going and saying we are probably going to be picking frankfurt, then you start to have more of a banking community and there will be others who choose that as well. julie: interesting. we shall see. thank you so much laura keller. still ahead, what could help media companies cut costs, gain
♪ julie: this is "bloomberg markets." time for the bloomberg markets it deals report where we zero in on the m&a business with insight and analysis from the biggest players behind the deals. it today we are talking cable networks owners. discovery and that i, have had separate talks to acquire scripps. joining us for more is bloomberg deals reporter alex sherman. surprising to some that there has not been more consolidation in the media business. why do these particular potential combinations make sense? alex: broadly speaking, we probably should have seen more consolidation among the bigger companies that have not done
particularly well over the past several years. the reason being there is a tectonic movement happening away from your traditional cable bundle going on for a while now. you can certainly look at the aggregate numbers, they have been down for years and years in terms of the number of people subscribing to your traditional cable bundle that includes all the channels to get from scripps and discovery and viacom, etc.. the idea now is they are providing skinnier bundles that do not include some of the lesser watched networks that have always, for years, been incorporated into your bundle and you have been forced to pay for them through your $100 bill per month even if you didn't watch those channels. now providers are starting to get leverage over the programmers saying -- to back up a second, it used to be that if they didn't offer the lesser -- you can't get the good stuff either.
now they say you don't want us to get the good stuff, we can live without it and get it on hulu or netflix. julie: why haven't they just closed down this stuff that providers don't want? alex: we are not there yet. still 95 million u.s. households or whatever the number is get cable. these struggling networks are still not total loss leaders yet. but they are going to be and that's where we get to this merger today, which is scripps has some channels a lot of people love. certainly, food network and some channels a lot of people don't work cap -- watch, the same with discovery. the idea is to put these companies together and if you throw in viacom, some popular channels and some not popular channels, then you can eventually weed away the networks people don't watch because they are already being away by skinny bundles and then you can slowly wind down networks nobody watches or
somehow aggregate them into the networks they do watch. the logic is good. the problem is, scripps is a good company. he would probably have to pay a lot of money to convince the family that owns scripps to sell. so many of these companies are family-owned. even though they are publicly traded companies, they really only sell when the family decides we need to sell. for years, the families have said we don't feel like selling yet and that is why we haven't seen too many deals. up a: i want to bring chart that basically compares everything to netflix, although there are other companies like amazon that have been doing programming as well. netflix clearly is the white line here. everything else is at the bottom. when you talk about these , is it a question of just not being as far below netflix? it doesn't seem like there's going to be a catch up no matter what.
alex: netflix is a play on the future of media so the netflix number of subscribers has just gone up and up and up without stopping. it's of over 100 million now, whereas the cable bundle normal or -- number of surprising -- number of subscribers keeps going up. if you look at viacom shares, this is one of the reasons why , we reporteddeal viacom and scripps have had talk. when you look at where viacom trades, it's about a $14 billion company. $10 billion about a company. for viacom to buy scripps, their share price does not lend them to doing it. julie: we will be right back. ♪
raising the least. the s&p and the nasdaq gaining steam today. let's go to tailor for more. >> it could be another record for the nasdaq, so i will focus on tech stocks. the travel advisory online shops, trip advisor at the most, 2.6% today, after an analyst upgraded it to market perform from underperform. in february, they downgraded the .tock to $47 a share doing a price target here of around $40 a share. since that time, they have underperformed by 20% here at expedia and priceline have outperformed a 20% to 30%. a little bit of a pop on that of grain -- upgrade, but competition remains a significant risk in that area. look at snapchat. it is higher today but still remains near a record low,
$14.73 a share. that it is reclaiming that $15 a share mark on news that perhaps nbc will launch a twice daily show. finally, another tech stock had its target raised this morning to $185 a share from $165 a share. an analyst says user growth has outpaced estimates for facebook. and competition from snap is lower than she originally estimated. julie: thank you. world's two largest economies, the u.s. and china, holding high-level talks in washington today. it got off to a tense start. the u.s. canceled its closing press conference after wilbur ross made blunt remarks on the trade gap. michael mckee joins us live from the treasury now. what is the current status of
these talks then? it is 97 degrees in downtown washington, and only mad dogs and englishmen go out in the midday sun. the two delegations are staying inside the treasury, not coming out to meet reporters. they did cancel the press conferences here and we are not sure if that is because the talks are going badly or because the talks are going well and they want to do keep the momentum up. but we know they started off on a rough note. the commerce secretary had blunt remarks to set the stage for these negotiations. take a listen. >> china now accounts for nearly 50% of the u.s. goods trade deficit. natural -- ifhe this were just the natural product of free market forces, we could understand it, but it is not. so it is time to rebalance our trade and investment fair,onship in a more
equitable, and reciprocal manner. so that is the u.s. goal, get that trait of the down. the chinese goal, more stability in the relationship. do not want a lot of volatility. obviously, the trade situation working in their favor now. we have a party hungers coming up in the fault is at the direction of the country for the next five years, and they would rather not have anything interfere with that. you can look for them to try to string this out. butight not get specifics, we might get a general agreement to keep talking on the various subjects. julie: one of the bones of contention between the two has been steel and whether the u.s. might try to impose some steel tariffs. what is the status on that? the administration has been promising action for quite some time, but it has not arrived. michael: it has been imminent. secretary, wilbur ross, and the president both
said they would have something by the end of june. that has come and gone. the president more recently saying he was going to take action to stop the chinese jumping on steel. he has not perhaps they're holding back on sanctions because they want to use it as a lever in these talks with the chinese, even of the chinese do not import much steel into the u.s. anymore because the obama administration put sanctions on their steel exports. julie: since there is not going to be a press conference, do we have any inkling about how we're going to get news on what was discussed at the meeting or even the tone of the meetings when they conclude? michael: we do not have any specifics at this point. we will be trying to talk to treasury officials and chinese officials to find out what happened. i imagine that they will want to on how theheir spin negotiations went. i characterize this as perhaps
the last step for the u.s. in a trade war, not meaning we are starting one, but if they keep talking, it will keep the president's tough rhetoric at the sideline for now and we will not be facing the big tariffs on china that he talked about earlier. julie: michael mckee, thank you so much. for more on the trade negotiations, the former ambassador to china, gary locke, .oins us now live from seattle ambassador, thank you for joining us. we appreciate it. when we look at this ongoing a lot between the u.s. and china, what do you think is the most to achieve out of these trade talks today? ambassador locke: it is really important that the u.s. stake out its position in terms of specific types of products or services or markets that are now closed to u.s. companies and how they need to be opened up. the u.s. really needs to press china for a timetable and a
commitment, a very measurable commitment, to opening up so many sectors of the chinese economy that are now closed to u.s. participation. china is america's number one export destination outside of canada and mexico, and those exports and the two-way trade between china and the united states support and create millions of jobs in america and in china. more we can sell our made in the usa goods and services to china, the more jobs we create here at home. of course, it meets so many of the medes and desk needs and demands of the chinese consumer and companies of china. these are the win-win propositions we need to keep pushing or julie: what is the most successful way to push those solutions? is it just through this kind of dialogue? is it through sanctions or through tariffs and other measures?
is one more successful than the other? ambassador locke: the chinese are aware that the u.s. can impose tariffs and sanctions on china. but that will only lead to a trade war. because if the president were to follow through on his promise of 55% tariffs on all chinese goods coming into the united states, there is nothing to stop china from doing the exact same thing on u.s. products going into china, whether it is boeing airplanes are soybeans or beef, medical a clinic, automobiles. that would really hurt the u.s. economy. it would raise the price of goods that american consumers purchase everything will they in department stores and hardware stores, things like that. also eliminate jobs. so many of the jobs in america are export-related now, and china is a huge market. that would have a major impact on this economy. 'iin a trade war, everyone lose,
no winners. julie: what about the u.s. cooperating with some of the other nations to get china to stop these practices? do you have any optimism that the u.s. can lead a cooperative effort on this? ambassador locke: there are ongoing collaborative efforts. your reporter just talked about the chinese steel. under president obama, the u.s. has already imposed sanctions and penalties on chinese steel coming into the united states, but china is still flooding the world market with lots of steel, which is lowering the price of steel. u.s.are making it hard for companies to compete and sell their steel overseas. there are many mechanisms and opportunities for u.s. operation are some of our allies and other trading partners to make sure that china opens up its market,
treats for an khamenei's fairly, gives them an equal opportunity to compete in china -- treats it wen companies fairly believe in competition. we believe the high-quality american products will do very well in china is given a chance. julie: you make the case here for china to allow selling to be happening there, but realistically, given the rhetoric we have heard from this administration thus far, given what you have seen in terms of its practices, are you optimistic that solutions will to, whethere come it is today or in the future, without a trade war? ambassador locke: the u.s. has been making progress on a bilateral investment treaty with china. it is very complicated, years in the making. we are getting much closer. i think the u.s. needs to keep pressing china on these
negotiations, and hopefully we can wrap them up within a year or so. that would really do a great deal to help u.s. companies, and not just open markets for u.s. companies and creating jobs in america but also have better protections on intellectual property, fairness, and the rule other issues many that u.s. companies are concerned about. julie: former u.s. ambassador to china gary locke joining us from seattle. appreciate it. let's get to bloomberg first word news. mark: the russian lawyer at the center of the controversy over a meeting with president trump's sun is offering to testify in the u.s. senate about the encounter. speaking to russian state tv today, she said she is ready to clarify the situation "only through legal means, either through lawyers are testifying in the senate."
according to him is released by donald trump jr. at the meeting last year, it was to provide an criminally about then-democratic kennedy and hillary clinton. president trump today kicked off his voter fraud commissions first meeting by criticizing states that failed to comply with the mission's request to turn over voter information. president trump: if any state does not want to share this information, one has to wonder what they are worried about. and i ask the vice president and the commission, what are they worried about? there is something. there always is. refused thetates commission's request for a detailed voter data, including names and voting histories. the president said the commission will protect the hison's democracy and, in words, uphold the integrity of the ballot, insisting it would be nonpartisan and following the facts.
tillersonof state rex is shutting down an office that coordinates cyber issues with other countries. people familiar with the plan say it is part of the department wide reorganization. coordinatorf the for cyber issues established under president obama in 2011 will be folded into the state department's bureau of economic and business affairs you'd critics say it will diminish the u.s.'s ability to confront hackers. the eu is threatening to slap poland with sanctions over a judicial overhaul. the eu is close to recommending that: face a procedure that could pave the way for the country to lose its voting rights in the bloc. it was was also print court judges and its president and to immediate retirement. 24 hours a day, powered by over 2700 journalists and analysts in more than 120 countries.
julie: we have headlines coming out of that meeting we were telling you about, president trump's lunch with republican senators to discuss health care. the president is now saying they are a lot closer on health care than people understand. he said we can do and obamacare repeal, but repeal and replace would be better, but that ship seems to have sailed now. president has lunch with republican senators. we will bring you headlines as we get them. from new york, this is bloomberg. ♪
republican senators to discuss health care. he is telling them, apparently, don't leave town without a health care plan. remember, the congress has delayed its summer recess in order to keep working on this, although repeal and replace seems to have failed. the republican congress is still attending a repeal. he is telling them to not leave town without a plan. meanwhile, also in washington, driverless cars are being discussed. they are becoming a reality. drivers are present legislation passed to put the back on the road. the firstconsider legislation on driverless cars today. advocates for the blind have a special set of concerns. here is our automobile reporter. ryan, this is a fascinating topic. what is the current status of any legislation here? would it allow the blind to get
back on the road and driverless cars? ryan: it is possible that that one day could become a reality. what happened today was a house subcommittee past what was the first federal legislation related to driverless car deployment. it has to make its way to the full committee in the go to the floor for a vote. this and it also working on a proposal of their own. it is -- the senate is also working on a proposal. there is a lot of interest on capitol hill about this topic. there will soon be a regulatory framework to allow that to one day happen if the right things come to pass. julie: what are some of the hurdles here? at this point, you have to have a drivers license to get into a car, but if it is a driverless car, how would that work? ryan: the short answer is no is quite sure yet how that would work. right now, states, in the absence of clear federal rules,
have been writing their own rules. something around 70 bills have been introduced in states from california to the east coast. the bill that was approved by the senate subcommittee today would create a federal trim, meaning states could not regulate autonomous vehicle performance, design, safety. that would be left to federal regulators, like is the case right now. julie: how vocal and how powerful have disability advocates and lobbyists been on this issue? ryan: they are asserting a stronger voice as folks on the hill start to move legislation through. several disability advocacy groups, including the national federation of the blind, began taking out radio ads recently thanking congress for their work on this issue. they have also partnered with t he coalition for self driving
cars for safer streets, a group that represents ford, volvo, lyft, and uber. they're working to make sure the needs of the blind are addressed in the policy world. julie: thank you so much. automobileomberg's reporter, talking about legislation to allow the blind back on roads and driverless vehicles. time for the bloomberg business flash. big blue is on the downside today, hitting a three-month low after missing estimates and he sells drop in its key cloud unit. it is the 21st consecutive quarterly decline in revenue for ibm. the ceo's turnaround land entrants a fifth year with our progress. u.s. stock allocations at the lowest levels since 2008. according to a survey, fund managers are 20% underweight and
julie: swiss watchmaker patek philippe is hosting a grand exhibition in new york this week. they create special edition watches created for american audiences and historical features like jfk. our bloomberg reporter sat down with the patek philippe president, thierry stern, at the exhibition, asking why the company is targeting new york now. >> america is very important.
important -- the relationship between patek philippe and the u.s. is very special for us. i am not ready to let it go. many brands are going to china now. we believe china will be the biggest market, and maybe that is right, but why do you have to leave the other markets? it is not fair. new york and the u.s. has always been very kind to patek philippe , and this is why i would like to do something here in new york. >> you created some special watches just for the new york audience and you are only selling them here. tell me about those. >> the whole world is asking if they can have one, but it is just for new york. is important it that they have something unique. you will see beautiful pocket watches made especially for today. they are very nicely
done. there will also be basic watches, a few different ones. >> half $1 million for five pieces. do you have buyers for them already? >> oh, yeah. my phone is ringing all the time, people from europe and from asia, but i say, no, it is just for the states. they do not like it appeared but when i will come to asia and europe, i will do the same for them. i will keep those watches for those people. >> you have our dissents from geneva here. tell me about what they do and how rare that is. >> it is not easy. the people you see here in new york, they are working in geneva normally. today they're here to present their work. i had to stop my whole production in geneva. but it is important because they can share their vision about beauty and quality. >> we have seen a softening in the high-end luxury market in china. we are seeing that in the u.s.
this year. are you seeing that? >> for me, america is still very strong. about china, it is a little bit the same. everybody rushed over there. i did not. i did not have the pieces, and i did not think it was fair to take it from the other markets and just bring them to china. but china has been increasing. p in china.tep-by-ste i'm not rushing. but the business is increasing in china, yes. >> the swiss watch industry has consolidated a huge amount. you are one of the only independent brands still left. most of them are owned by groups. in 50 years, do you see the same companies are do you see fewer brands? >> we will see a few brands disappear. those groups, we should never forget that there are always bigger groups. what we see today will not be the same and 50 years,
absolutely. why --t see [indiscernible] any mistakes, it should be fine. for the big groups, it is a little more difficult. it is a hard time to handle those brands. they are fighting each other inside the groups. yes, there will be a change. some will disappear, but i do not know which ones and i do not know when. julie: that was patek philippe president thierry stern with our global luxury reporter. a headline is just crossing that the supreme court will not lead the trump administration bar people's grandparents in the u.s. from entering this country. this is bloomberg. ♪
president donald trump invites republican senator to the white house for lunch. we will bring of the latest details in the gop effort to revive and obamacare repeal and comments from the president. speaking of the president, he may end his first year in office without a single major legislative a compliment. what is his plan to salvage his legislative agenda? we will hear from joshua green on his new book, donald trump and storming of the presidency. ♪ ♪ and donald comes meeting, they said that republicans are closer on health care than people understand. illi is on capitol hill.