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tv   Bloomberg Markets Balance of Power  Bloomberg  February 22, 2018 1:00pm-2:00pm EST

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markets: balance of power." are moments away from the results of the seven-year twosury note sale erie at hundred $58 million worth of notes are being sold. the nra andump says republicans want to get something done when it comes to gun control to the president has been reaching out to lawmakers to change their minds on the issue. and the challenges of modernizing america's air force, ahead of the international -- the head of the international transport association joins us to talk about whether president trump's plans go far enough. ♪ vonnie: -- let's get a check on where markets stand at the
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moment. abigail: take a look at the dow, s&p 500, and the nasdaq, all higher. we are seeing a small amount of volatility similar to what we have seen over the last two being days. -- two days. look at the intraday chart of the s&p 500, you can see what we are talking about. opening steadily higher. the highs at more than 1%. starting to trickle down. rates have been lower. repricing, having to do with valuations. legislation is not typically thought to be solid for stocks. if we take a look at all of the year,even, ten, thirty
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we are waiting for a $29 billion auction. the demand has been pretty solid relative to the other auctions this week. japanese insurers are bidding strongly right now, thinking that rates are not going to continue higher. the seven-year note auction, $29 billion have come out. prior to the auction, the issuance rate was 2.832%. are looking at the seven-your option. $29 billion in seven-year notes. was the i mentioned high yield rate, 2.83 two percent, which actually came out slightly higher than that. this is relative to the bid to cover. we are looking at 2.49% relative
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to 2.73%. finally, if we take a look at the indirect bidders, we see strong, this is a relatively strong auction. seven-your yield is still down about three basis points. thank you so much for the latest with the seven-year treasury. let's get more on that. ,oining us is ira jersey bloomberg intelligence strategist. 2.49% is lower than the previous auction. and a 62.2% to indirect bidders. compare that to treasury sales earlier this week.
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ira: we are back to the same kind of demand structure used off -- you saw in october through december of last year. this is an ok auction. was a little bit of indigestion in the market. to january, that is not a good comparison. there is a higher volatility risk-off market.' you had significantly better results at the end of january. you get the 10-year and the 30-year reopening. those will be very telling. there will be a much more duct than wek pro have seen this week thanks to demand. shery: what about foreign interest? demand may come in
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when we have somewhat higher yields than we do now. discussioneen some that may be some asian buyers are coming into the treasury market. we don't get that data immediately. what has been happening in the last several years is bloomberg asset managers have been the largest buyer of the treasury. when you look at the data that the treasury puts out for foreign demand, it has been flat the last couple of years. that foreign demand may come back, but it requires higher yields. there were concerns in some quarters that the increased supply would shake these auctions. that didn't happen. does that make us breathe a sigh of relief going forward, or
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could this build is more and more deficits are covered with treasury issuance? ira: the auctions will continue to clear at a reasonable level. why we haveeasons seen some of the price action we have over the last month, and since the treasury department announced it was going to increase two-your notes and three-your notes where the somewhat higher yields -- t wo-year notes and three-year notes were these somewhat higher yields. the treasury has started to increase auction sizes. it could be a little bit harder at some point to issue bonds at the price where the market wants. put yourself in the situation of the federal reserve. we have a new chair coming in next week and testifying in front of congress.
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what information with they take from these auctions? is this reinsurer -- does this reassure financial positions? ira: this is not something the fed has to worry about. the fed chair has to worry about financial stability. that these offers are clearing even with higher gilts has to give them some comfort. yields has to give them some comfort. david: thank you so much, ira. coming up, mixed messages from the white house. with the president and to the republican congress move a bit on gun control? this is bloomberg. ♪
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shery: this is "bloomberg markets: balance of power." let's go to the bloomberg first word news with mark crumpton. has: president trump endorsed more control over gun sales in the wake of the for the school shooting. would pushnt said he for tougher background checks and screen for mental health. he wants to raise the minimum age for buyers to 21 from 18, although it is unclear if it is for only assault style weapons. former president jimmy carter is solutionhe two-state in the israeli-palestinian conflict has been overtaken by a one state reality which will have dire consequences for israel in the long-term. the former u.s. ambassador read a statement from mr. carter to
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the un security council. the two-stated at solution must be anchored on adjustments,with and with jerusalem as the capital for both israelis and palestinians. a civil society in new york was theed with eggs outside center for policy and research in west bank. the group was on an unofficial visit. tensions have been running high since december when president trump declared the united states recognizes jerusalem as the capital of israel and the embassy will be relocated there from tel aviv. british prime minister theresa may is shunning her most senior -- shutting her most senior ministers away in a room on to force them to discuss what trade
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deal they want with the european union. global news 24 hours a day, powered by more than 2,700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. david: since the tragic shooting at a florida high school left 17 dead last week, the question of guns has been the top of the national agenda. i will beent tweeted, strongly pushing a background checks with an emphasis on mental health. congress is in a mood to finally do something on this issue - i h ope! to talk about the politics on this issue and other issues weing the republican party, talk to the former communication strategist before marco rubio 2016 presidential campaign. rubio's 2016
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presidential campaign. give us some insight into the politics facing the president. he is really moving on this issue. alex: republicans want to do something on this issue. we are the governing party right now and it is unacceptable to have all these mass shootings we are experiencing. what happened in orlando last week was completely unacceptable in a free country. republicans want to do something on this. inthe same time, we believe the second amendment and that law-abiding, healthy americans have the right to bear arms. of people the rights to own guns but also keep them out of the hands of criminals and the mentally ill. most people working with the president are in line with that, including expanding background checks to include mental health. is not up to the president alone to take the
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steps. alex: congress is out this week. capitol hill is a little empty. the debate when they come back is going to be really interesting. a lot of members have been meeting with constituents this week. marco rubio met with a lot of constituents, many people watching the cnn town hall last night saw one of the most liberal areas in the entire state, meeting with families from last week's shooting. i expect other senators are having similar experiences. shery: senator marco rubio has softened a little bit on owning guns. take a listen. if i believe that law would have prevented this from happening, i would support it. i want to expand to you why it would not. [jeers] my daughter -- >> my daughter running down a
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hallway was shot in the back with an assault weapon. the weapon of choice. it is too easy to get and a weapon of war. the fact that you can't sit with everyone in this building and say that, i am sorry. [applause] shery: that town hall was very heated. senator rubio said in an 18-year-old should not be able to buy a rifle, softening on raising the age limit to 21. we seeing more lawmakers softening their stances? 18-year-olds are not allowed to buy handguns. should they be allowed to buy rifles? it is common sense they should not be allowed until they turn 21. that is something the state led to stir -- legislature will move
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on relatively quickly. senator rubiohat spoke about and other republicans are talking about includes expanding background checks. gun control is a tricky issue. democrats in the past have rejected some republican proposals because they want to go further. and democrats also signed with republicans that represent -- side with republicans that represent red states. eid was endorsed by the nra and blocked a lot of them legislation when president obama was in office. shery: but we are talking about arming teachers and conceal and carry. be included in the house given that we have a freedom caucus not wanting this? a piece of legislation
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moved through the house that would ban bump stocks, something that most republicans and the and the nra have said they would support. .he house that proposal to make concealed carry laws work across state adjusted thatouse proposal to make concealed carry laws work across state lines. those proposals. together is unworkable in the senate. pairede proposals together is unworkable in the senate. there is majority support for banning bump stocks and passing extended background checks. those are things that the president and marco rubio are focused on. david: we are seven and a half months from a midterm election. world, as youal look out from your experience, is it likely this gun control issue will endure through
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november so it will be a real issue, particularly in the congressional race? or will it be about tax cuts or something else? alex: it is far too soon to predict. thertunately, this isn't first mass shooting we have had in an election year. attention spans are very short and people move on after a couple of weeks. that is part of the reason why gun control legislation has always stalled in the past. students have been saying they are going to do a march on washington next month. it is completely possible this is a tipping point and gun control does become an issue in the midterms. i don't know if that helps democrats at all. i would argue it probably hurts them more than it helps them. there is a special election outside of pittsburgh in a rural part of pennsylvania for a house seats that republicans should win, but it is competitive.
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democrats are spending a lot of money there. big issue inl is a that race, they will have trouble holding onto their democratic seats in the states that trump won, worth of -- virginia,ta, west missouri, wisconsin. if gun control is a big issue in those races, that plays to the democratic disadvantage. david: you have spent a lot of time in florida. you know the politics. towntched marco rubio's hall meeting and some students go to the state house and press their representatives there on this specific issue of assault weapons. is it likely that florida will change the law? will, atelieve they the very least to raise the aim -- age limit. i would expect the forger -- florida legislature would make
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all weapon purchases illegal is 21 years old. that seems like a bipartisan measure. other activists are calling for banning for certain types of weapons. the florida legislature already rejected that since the shooting earlier this week -- since the shooting earlier. republicans, who control most of the state legislatures around the country, believe that if you are healthy, law-abiding, you should be able to own a weapon. david: thank you so much for your time. alex conant. thanks again. ahead states are under to protect their election systems from cyberattacks.
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will they get critical help from the feds? shery: we are seeing a pare back from gains earlier. the dow up 8/10 of 1%. all sectors on the s&p 500 are in the green. they are rising in the most global way after falling overnight after the fomc minutes. live from new york, this is bloomberg. ♪
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david: this is "bloomberg markets: balance of power." shery: states are rushing to election systems to prevent cyberattacks as elections draw near. we caught up with a ceo of fireeye for his take. >> this threat is here forever. technical threat during
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elections we are going to continue how to learn to do more digital-based elections. are going to become his and during elections to protect the vote tally. have a reporter joining us from washington. states doing to protect the election? >> officials are trying to provide information to states. it is up to states to turn to the federal government if they want some of those services. ontes are really counting the federal government to give them information about threats to their election systems, and also about information operations. david: is the frustration getting worked out? you say 20 states get affected, which ones? is that all worked out? huge gap inre was a
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communication last year because it took the federal government several months to let states know they had been targeted in 2016. severalll -- were classified briefings in washington. communication gaps are being indged, but we are already 2018 and midterms are around the corner. primaries begin in illinois and texas next month. we still have to see how much information is going to get out to states and how much they are going to be able to share publicly with their voters. have been seeing tensions between federal and state authorities over election tampering. that surfaced in january of last year. we have heard from federal officials and senior intelligence officials that this year's midterms are a potential threat for election meddling?
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are they going to leave all -- evolve? could they be different, worse? should we only be looking to russia? maybe others have learned. shery: that is a scary thought. thank you very much for that update. willg up on the show, we have the head of the international air transport association joining us. gos president trump's plan far enough in modernizing the nation's airports? this is bloomberg. ♪
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david: this is bloomberg markets balance of power. shery: the dow is up .9%.
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all sectors in the green. the nasdaq at the highest in three weeks. last debt sale of a quarter of $1 trillion this week. the yield at 2.8%. that is down from the seven-year high that was hit last thursday. yields are coming down today after spiking yesterday after the fomc meeting minutes. the yield falling after eight sessions of gains. mark: in the wake of last week's school shooting in florida, the wayne lapierre says the answer to increasing safety in schools is to heighten the security presence to the levels of federal buildings and sporting events. he also took on the nra's critics. >> they hate the nra.
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they hate the second amendment. they hate individual freedom. in the rush of calls for more government, they also revealed their true selves. america's care about school system and schoolchildren. if they truly cared, what they would do is they would protect them. mark: he added "to stop a bad guy with a gun, it takes a good guy with a gun." a longtime media advisor to benjamin netanyahu appeared in court today over allegations that he attempted to bribe a judge to drop a corruption case against netanyahu's w ife.
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parents in northern nigeria say more than 100 girls are still missing three days after suspected boko haram extremists attacked their school. comes afteruncement government officials acknowledged that some 50 young women remain unaccounted for after monday's attack. in 2014, boko haram of ducted abducted girls from a school in a jury of. investigating a suspicious package that was sent to prince harry and meghan markle. substancecontaining a was delivered to the palace where harry has his office last week. the evening standard newspaper says that contained a racist message. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries.
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i'm mark crumpton. this is bloomberg. shery: president trump campaigned on fixing the u.s.'s crumbling infrastructure. has the white house released its plan but funding remains up in the air. are we doing enough to meet demand? running is now, alexandre de juniac. thank you for your time today. i know you have a busy schedule. we do wanted to talk to you about infrastructure in the u.s. we've heard president trump about selling off some of the airport assets. washington's airports are a target. is that a good idea? then: the usa -- alexandre: usa needs investments in infrastructure. normally, the number of passengers will grow by 50
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the cominge u.s. in years. we welcome a plan. please, invest enough money and public money to increase capacity and improve efficiency for this infrastructure to be a portable. we pay for this infrastructure. the passengers and the airline, they pay. it is a paying infrastructure. shery: the deal right now is to privatize and selloff these assets. have we seen any case abroad in other countries where you can balance the public benefits and private interest? alexandre: we are favoring the privatization of airports. australia, south
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america, there have been bad results. be cautious when you intend to privatize. then, you have to find the right compromise. tore are other means reconciliate the private and public interests. david: laguardia airport is being rebuilt right now. state willure of the continue to own the land. they are making long-term deals with private interests that provides potential funds. alexandre: it was in a society to -- it was a necessity to renovate laguardia.
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looks very well-designed. the airlines are satisfied with that. oure been able to express requests and demands. we think that the balance between the private and public interests have been quite well organized. favor not against or in by principal, but we have to find the right compromise. i think the solution looks great. david: apply that to air traffic control. is there a private-public approach that would improve the system? alexandre: we think it should remain a kind of public or
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nonprofit entity. it should be extracted from government influence to be put into a corporatization. the u.s. authorities have the project -- it is a very good idea. it should be done. then, we can plan multiyear investments. which is absolutely necessary. 5-6 years toeen design it and put it into service and then it is a long-term investment. test -- long-term shery: there's another idea, increasing the charges for security. tsa fees. is that a good idea? security isandre:
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mainly in the hands of government. it is the responsibility of government. we do our best and we transport 11 million passengers every day securely and safely. what we say is we have a response ability -- responsibility and we can bring practical ideas to implement. that.e has to pay for a tax -- we do not favor a lot of taxes. if there is a tax to improve security, the funds that are collected through that text should be invested in security. our concern is this fund could go somewhere else. david: there's the rub. we have usage fees. we pay money.
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than congress or the united states government says we would like that money for some other purpose. --l congress resist any alexandre: if they put a tax to fund investment and improvement of security measures, it has finance these measures and not something else. they are not t transparent to the taxpayer. shery: thank you for coming into the studio today. alexandre de juniac, director general and ceo for the international air transport association. coming up, the unrest and dire economic situation in venezuela has caused refugees to plead to columbia. colombia. baird ♪
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david: this is "bloomberg markets: balance of power. " shery: for the last year, venezuela has been in a state of political and economic crisis. basic goods are scarce. many venezuelans have left their own for neighboring colombia. colombia has now created a refugee camp to manage the population. joining us now from washington, camilo reyes, colombia's ambassador to the united states. give us the details of how bad
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the situation is at the colombian border. amb. reyes: thank you very much for having me. it's a pleasure to be with you. yes, unfortunately, there is a very bad situation in the colombian frontier between colombia and venezuela. the frontier zone has been badly a very increased immigration phenomenon of people who are looking for staples. they are looking for food, they are looking for medicine, they are looking for medical services, they are looking for education for their children. all kinds of support from the colombian state. colombiaay that c has been working first of all in the intent to create the needed
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that then venezuela so democratic institutions in venezuela can be rebuilt. that is being done mainly lima, which is doing a huge, important work. they've been working on the building of the main elements so that the international community can reach a common denominator to send a message of what we need to do in venezuela. then, i would say that it is a moment -- the most needed action is humanitarian aid. we are having the need to be support fromve the the international community so
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that the venezuelan population and can bested provided with their needs. wave: could this refugee worsen crime in columbia -- in colombia? amb. reyes: there is that risk. somehow, it is happening that there's an increasing crime. these are families, people who arrived with the most basic needs. these people are looking for food. they are looking for medicine. they are looking for clothes. they are looking for places to sleep. that is a risk. we are already seeing some areas of colombia affected. there are some middle sized cities in colombia being
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affected. we have people in bogota who have arrived there. we are seeing another phenomenon. people arriving looking to move to other countries. that will happen slowly, but that will soon show that we need to cooperate at the international level so that we deal witha system to this crisis which is taking place in our neighbor. shery: the u.s. secretary of state stopped by columbia just last week. what is the state of ties between the u.s. and colombia? we see more pressure coming from president trump's administration. amb. reyes: fortunately, the relationship between colombia and the united states is very good. visitedent already
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president trump. then, we had a visit by vice president pence to colombia. our vice president visited the united states. now, secretary tillerson visited us. we had a very interesting agenda. among other things, it was very keep a high level strategic, first-class relationship with the united states. relationship our as something that is not only of enormous importance for both relationship has benefited both american citizens and colombian citizens. together not only regional challenges, as it is
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the case with venezuela, but we are facing together under the principle of shared responsibility the needs to confront in a more efficient way -- fight against 'sery: camilo reyes, colombia ambassador to the united states. shares of the company previously known as smith & wesson rising today. joining us with more is taylor riggs. historically, when there's been pricescre, those stock have gone up because of fear of gun control. >> how do you know? check out the chart. you are absolutely right. that correlates. three of the five deadliest mass shooting's in our history have
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been since june 2016.yet , shares have underperformed since then. ruger sales fell 15%. american outdoor brands down 52%. the russell 2000 leisure index slowly creeping up. sort of taking this conversation away from gun control and just looking purely at the fundamentals, the revenue of american outdoor brands missed a little bit. analysts are forecasting a small drop next year. that is expected to get to the $700 million range. revenue has picked up a lot for these companies. david: the president came out today and said he supports some limited form of gun control. the phenomenon of the florida pension plan for teachers --
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could that be affecting the stock prices going forward? taylor: that is pulling it both ways. we don't want to be in these stocks -- we have a chart showing ruger up today, like american outdoor brands. interestingly enough, they reported earnings yesterday that were a mess as well -- miss as well. , going forward, next year, they think sales will rise. sales have increased over the last decade. the ammunition maker, thi vista, is down. david: thank you so much, taylor. lapierre pushed back against gun advocates with a fiery speech at the political
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-- conservative political action conference this morning. this is bloomberg. ♪
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shery: this is "bloomberg markets: balance of power." david: the annual conservative political action conference -- mike pence leading up a series including marine le pen and nigel farage. kevin cirilli joins us from the national harbor. we have vice president pence this morning. was that a high point? what did he say? kevin: no question, vice president mike pence received well here. lapierre taking his critics head-on and doubling down on arming schoolteachers in schools nationwide to better
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protect against gun violence. last night, senator marco rubio distancing himself from several key points of the nra. now says he's in favor of raising the age requirement from 18 to 21 to obtain a weapon. president trump suggesting he had concerns about the video , sayingndustry teachers who carry a weapon should receive bonuses. feel this year is a bit more sober. he argued that next week, lawmakers are expected to pick up some type of bipartisan reform. what they are remains to be seen. david: they will give bonuses to the teacher and train them. is there some distance growing between the president and wayne
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lapierre? the president is saying 21 personal weapons. or assault weapons. kevin: specifically on the issue of bump stocks as well. there is some distance. private citizen donald trump was not always mindful of the nra. with his tweets this morning, he's been taking the position of using armed guards or armed teachers. , the proposale stops short of that. either way, this has been pushed to the forefront of the political agenda. lawmakers on capitol hill return next week. shery: kevin cirilli, thank you so much. let's get a quick check of the markets. we are seeing that rally fading
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in the afternoon. .9%.ow is down, off all sector still in the green. energy and real estate leading the gains. the nasdaq is gaining ground. we want you to sign up for the balance of power newsletter at or you can catcher, all of our interviews on the bloomberg with the function tv . york, this is bloomberg. ♪
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julia: it is 2:00 p.m. in new york and 7:00 p.m. in london. lisa: welcome to "bloomberg markets."
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julia: we are live in new york over the next hour. here are the top stories we are covering. stocks rebound. u.s. equities rise for the first time in three sessions. barclays bounces back. putting 2017 behind him, signaling good returns ahead. u.s. markets close in two hours. taylor: it is not out on the major averages. the dow up 1%. the s&p 500 up almost .5%. the


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